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HomeMy WebLinkAboutCOM 0462.000 2000-2002 rl ~,a AL KONISHI `•~-``rc DONALD IKEDA County Cterk :o Deputy County Cterk 6 :N ~'~'a'+±'~ CONSTANCE R. KIRIU Legislative Auditor COA~BZt~j~ Of ~ldB4~~l ~l Offaee ®f the C®uraty Clerk 25 Aupuni Street Hilo, Hawai `i 96720 Telephone: (808J 961-8255 Facsimile: (808) 961-8912 l i ~ L 4,~,_ °i. December 20, 2001 TO: Council Members FROM: Constance Kiriu Legislative Auditor RE: Post-Audit Report of the County of Hawaii Fiscal Year Ended June 30, 2001 For your review, deliberation, and acceptance, I am submitting the post-audit Financial Audit Report of the County of Hawaii for the Fiscal Year Ended June 30, 2001, and Management Letter dated October 26, 2001, 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 Letter contains findings and recommendations related to: • Driver's License Fee Collections • Timeliness of Federal Grant Reimbursement Requests • Treasury Petty Cash Fund • Contract Monitoring • Information Technology Strategic Plan • Collection of Receivables (Wastewater and Solid Waste) • Risk Management Process • New Government Reporting Model The auditors will be present at the Finance Committee meeting on January 8, 2002, to answer any questions you may have. Appropriate department heads or their representatives will also be asked to attend the meeting. In the meantime, please feel flee to contact Rodney Oshiro should you require further information. Enclosures cc: Ralph Kanetoku, KPMG LLP Derek Mizuno, KPMG LLP Please note: Attachments filed in County Clerk. ~il~ No' j~~f, fie: .,<A... s,..... ~~~s financial audit yep®rt f®r ~6e Fisc~! ~~ar ended Ju®e 30, 2001 R~ov~ ~astE~ er F'oreevord This financial audit report is the result of the audit of the general purpose financial statements of the County of Hawaii, State of I-Iawai`i (County), for the fiscal year ended June 30, 2001. The audit was conducted by KPMG LLP, certified public accountants. The audit was performed in accordance with auditing standards generally accepted in the United States of America adopted by 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 County's internal control in connection with their audit of the County's financial statements for the fiscal year ended June 30, 2001. It is our practice to request agencies to submit their comments on the auditors' findings and recommendations and to indicate what action has been or will be taken. Section II, "Comprehensive Annual Financial Report" for the fiscal year ended June 30, 2001, displays the general purpose financial statements and schedules of the County, the auditors' report as to the fairness of presentation of the general purpose financial statements and also includes statistical information. We wish to express our sincere appreciation for the cooperation and assistance extended by the management and staff of the various departments during the audit. R ~ Constance R. Kiriu Legislative Auditor County of Hawaii COUNTY OF ILAWAI`I Financial Audit Report For the Fiscal Year ended June 30, 2001 Table of Contents Page SECTION I -MANAGEMENT LETTER Management Letter 1 Current Year Findings and Recommendations 2 Status of Prior Year Findings and Recommendations 12 Comments by the Affected Agencies 16 SECTION II - COMPREIIENSIVE ANNUAL FINANCIAL REPORT Introductory Section 1 Financial Section 17 Statistical Sections 127 _ ~'~Tl~N I ~ dVIeQN~~~JI~l~NT ~7°"l°R P 0 Box 4150 Honolulu, HI 96812-4150 October 26, 2001 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, 2001 and have issued our report thereon dated October 26. 2001. 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 26, 2001. In planning and performing our audit of the County's general purpose financial statements, we considered internal control in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements. An audit does not include examining the effectiveness of internal control and does not provide assurance on internal control. We have not considered internal control since the date of our report. During our audit, we noted certain matters involving internal control 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 6, 2000. 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 v,~e felt merited reconsideration have been modified where necessary and restated in the current year 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 Counh~'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 Hawaii 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 truly yours, Ji !L~ 1 COUNTY OF HAWAII STATE OF HAWAII Current Year Findings and Recommendations June 30, 2001 DRIVER'S LICENSE FEE COLLECTIONS During our review of the driver's license fee collections procedures at the South Hilo location of the Police Department, we noted that there were no internal control procedures to detect the unauthorized issuance of permits and licenses. Currently, employees reconcile the applications, scoring sheets, receipts and cash at the end of the workday. However, these amounts are not reconciled to the permits and licenses issued for the respective day by the computer system. We were informed that the daily reconciling procedures are the same at all eight licensing locations. We were also informed by Police Department personnel that between July and December 2000, the Police Department identified approximately 90 instances of possible unauthorized issuance of permits and licenses at the Kona site. We were informed that this matter is currently being investigated. Reeomonendation We recommend that the County assign an employee, independent of the permit and license issuance and the cash collection functions, to reconcile the previous day's permits and licenses issued by the computer system, applications, scoring sheets, receipts and cash. TIMELINESS OF FEDERAL GRANT REIMBURSEMENT REQUESTS During our review of a federal award program, the Formula Grants for Other Than Urbanized Areas, we noted that reimbursement requests made to the grantor, the State Department of Transportation, were not prepared in a timely manner. For reimbursement type grants, the County must initially expend its own funds and then request reimbursement from the grantor on a quarterly basis. During fiscal year 2001, the County purchased five buses amounting to $1.4 million, of which $1.3 million was reimbursable by the grantor. The buses were invoiced and paid for on December 4, 2000 and January 1 1, 2001, respectively, however reimbursement was not requested until May 7, 2001. Recompnendation We recommend that the County request reimbursement from grantors under reimbursement type grants in a timely manner to maximize the County's interest earnings and to ensure that funds are available for other County programs. 2 (Continued ) COUNTY OF HAWAII STATE OF HAWAII Current 1~ear Findings and Recommendations June 30, 2001 TREASURY PETTY CASH FUND During our review of the petty cash fund at the Treasury Division of the Department of Finance (Treasury Division), we noted that the petty cash fund internal controls could be improved and that the balance could be reduced. The Treasury Division's petty cash custodian maintains a petty cash fund in an amount of $20,000, which is used for cash purchases of less than $50 and emergency per diem advances that may exceed that amount. Approximately half of the fund is maintained in a petty cash non-interest bearing checking account. The average weekly dollar amount of transactions is between $4,000 and $5,000, with a high of $6,500 during fiscal year 2001. Requests for replenishment are submitted weekly, which take 2 to 3 days for replenishment. Disbursements from the petty cash must be supported by receipts and vouchers that are approved by the respective department heads. The petty cash custodian reconciles the receipts, vouchers and cash on a daily basis and another employee reconciles the petty cash checking account on a monthly basis. The custodial and reconciliation functions of the petty cash funds should be separated to prevent misappropriation of assets. We found that reconciliations of petty cash balances are not periodically reviewed by an employee independent of the custodial function. Currently, the petty cash custodian performs both the custodian and reconciliation functions. We also noted that the petty cash is kept in a locked drawer at the custodian's desk during the day, however, the key to the drawer is not secure. At night, the petty cash is kept in a locked vault. We observed the year-end petty cash fund count at the Treasury Division, noting that all funds were properly accounted for at June 30, 2001. Additionally, we were informed that the average daily balance of petty cash is approximately $13,000, which is split between cash on hand and the checking account. Considering that the average dollar amount of weekly transactions is between $4,000 and $5,000 with a high of $6,500 and that the delay in replenishment is approximately 2 to 3 days, it would appear that the petty cash balance could be reduced. Recommendation We recommend that the County perform periodic independent reviews of the daily counts of the Treasury Division's petty cash fund and maintain the petty cash in a locked drawer with the key properly secured. The County should evaluate its petty cash activities to determine whether a reduction in petty cash balances is warranted. (Continued) COUNTY OF IIAR'AI`I STATE OF HAWAII Current Year Findings and Recommendations June 30, 2001 CONTRACT MONITORING During our review of an agreement with a vendor to provide animal control services for the County, we noted that the County could improve procedures to monitor costs and activities associated with this contract. During fiscal year 2001, the County reimbursed this vendor $650,000 for costs incurred to fulfill the agreement. This vendor also collected and remitted to the County animal registration and impoundment fees amounting to $27,228 and $7,870, respectively, during fiscal year 2001. We found that the County has adequate internal controls over animal registration fees to ensure that it receives all registration fees due to the County. However, the County could improve internal controls to (1) ensure the propriety of cost reimbursements requested by the vendor and (2) ensure that the County collects all impoundment fees due to the County. Current procedures consist solely of reviews by County employees of a listing of expenses submitted by the vendor. Given the large amount of cost reimbursements paid to the vendor and the present controls over the collection of impoundment fees, the County should consider increasing its contract monitoring efforts. This may be achieved by performing procedures similar to the federal government's monitoring procedures over its grant recipients. The federal government subjects recipients of federal awards that expend $300,000 or more in a fiscal year to audit procedures on certain internal control and compliance requirements (i.e., allowability of costs, reporting requirements, etc.) Recommendation We recommend that the County perform periodic reviews of the vendor's operations, focusing on the reasonableness of the controls over costs reimbursement, expenses reimbursed by the County and on collection procedures over the impoundment fees. Alternatively, the County could consider including a provision in the contract requiring that the vendor conduct an annual independent audit. The County could then obtain and review the audit report as well as the management letter as part of its contract monitoring process. 4 (Continued) COUNTY OF HAWAII STATE OF HAWAII Current Fear Findings and Recommendations June 30, 2001 INFORMATION TECHNOLOGY STRATEGIC PLAN During our review of the Count}''s information technology (IT) processes, we noted that there is no formal documented IT strategy or long-range plans to support the achievement of the County's missions and goals The strategic plan should also include comprehensive disaster recovery and business continuity plans. The IT strategy or long-range business plan typically drives and supports the growth of the collective infrastructure required to provide the cohesiveness required by the organization. The County's current IT systems were established to support the County's day-to-day operations and the growth of several sub- sections of the County. The development and documentation of a formal IT strategy is especially important for the future planning of the County's automation requirements. The lack of strategic IT plans may impact the County's ability to allocate appropriate IT resources in support of the County's overall mission and goals. Without a formal IT strategy, appropriate allocation of computing resources may not be possible. As the County continues to grow its business and the diversity of its operations, these factors become more critical. Recommendation We recommend that management establish a strategic planning process to develop a formal IT strategic plan. The IT strategic plan should include the following elements: long-range objectives, architecture and a resource analysis. In addition, the County should develop a comprehensive business continuity plan that provides for the timely and systematic recovery of business operations, update the plan on a periodic basis to reflect changes in the IT environment and business processes, and that all aspects of the disaster recovery and business continuity plans be periodically tested. 5 (Continued) COUIr`TY OF HAWAII STATE OF HAWAII Current ~•ear Findings and Recommendations June 30, 2001 COLLECTION OF RECEIVABLES Timely collection of wastewater (sewer) and solid waste (landfill) receivables continues to be a problem for the Department of Environmental Management. Sewer and landfill receivables outstanding for more than 90 days account for a significant portion of the respective receivable balances as follows: 2001 2000 Amount Percentage of Amount Percentage of outstanding total outstanding total Sewer Current $ 649,71 1 41 % 572,347 41 31 - 60 days 129,547 8% 139,734 10% 61 - 90 days 74,4» 5% 73,742 5°iu 90 + days 744,077 46% 615,061 44°io $ 1,597,768 100% 1,400,884 100% r#''•'so Current Current 90 days o. 90 + days : `'~'~'r'`•~':~"~ 41% 4a^o . ::...~::~.a 61 - 90 days 31 - 60 days 61 - 90 days 31 - 60 days 5°~0 10 ~o 5% g% 6 (Continued} COUNTY OF IIAWAI`I STATE OF HAWAII Current fear Findings and Recommendations June 30, 2001 2001 2000 Amount Percentage of Amount Percentage of outstanding total outstanding total Landfi!!: - Current $ 242,733 22% 266,497 25°ro 31 - 60 davs 235,406 21°ro 204,096 19% 61 - 90 days 116,387 ]0°/0 57,950 6°io 90 +davs 523,194 47% 523.484 50°io $ 1,117,720 100% 1,052,027 100°io Current ~~°ib ~r., Current • ~~°'e, o ~i:,vr FV:.: 90 -days o; ...n 47,0 90 ~ days :4~cz<:h....%^~ 50°io 31 - 60 davs ~ I % 31 - 60 days 19% 61 - 90 days 61 - 90 days I0°° bo'o During our review of the processes to collect sewer and landfill receivables, we found that the County's application of collection policies are not consistent between the two types of charges. For sewer receivables, the County assesses aone-time penalty equal to 10% of the balance delinquent over 60 days. For landfill receivables, the County assesses interest equal to 18% of the balance delinquent over 60 days until the balance is repaid. However in practice, we noted that landfill accounts receivables for commercial haulers are only charged interest after 90 days. The commercial haulers hold the position that interest charges begin after 90 days which is consistent with recent practice. The County is in the process of developing comprehensive policies and procedures for collection of all County receivables. The Department of Environmental Management utilizes a collection agency to pursue delinquent accounts < $1,000. As of June 30, 2001, the Department of Environmental Management had 655 sewer accounts amounting to approximately $202,000 and 517 landfill accounts amounting to approximately $28,000 with the collection agency. The current agreement with the collection agency dictates that the Department of Environmental Management receive 67% and 73% of all collections on sewer and landfill receivables, respectively, made by the collection agency. The Department of Environmental Management 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. We noted that the current contract with the collection agency expires in April 2002. 7 (Continued) COUNTY OF IIAWAI`I STATE OF' I-IAWAI`I Current Year Findings and Recommendations June 30. 2001 The landfill receivable delinquency problem can also be attributed to the Department of Environmental Management's credit extension policies. We again noted that the Solid Waste Division of the Department of Environmental Management extends credit to all citizens and businesses regardless of credit history. Landfill use is only refused when an outstanding receivable balance exceeds 90 days. Recommendation We recommend that the Department of Environmental Management continue to work with the Department of Finance to develop comprehensive policies and procedures for collecting County receivables. The policies and procedures should address all aspects pertaining to revenue generation and collection including extension of credit; when and how much interest to charge: and when to deny service, take legal action, write accounts off and to offer payment plans. These policies should be formally communicated to the public and should be strictly enforced by the County. The Department of Environmental Management should also perform the following procedures to monitor and evaluate the results of the collection agency's activities as reported by the agency: 1. Periodic comparison of the ratio of actual collections by the collection agenc}', 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 Environmental Management should establish benchmarks for collections and evaluate the effectiveness of the collection agency's efforts relative to those benchmarks. RISK MANAGEMENT PROCESS Workers 'Compensation Review of Open Claims During our review of the risk management process, we noted that the Workers' Compensation Unit, Health & Safety Division of the Department of Civil Service (Workers' Compensation Unit), has been limited in its ability to review open workers' compensation claims due to a lack of resources. Periodic reevaluations, additional medical opinions or prescription of new medical treatments for existing claims may expedite the closure and/or settlement of such cases, thereby reducing future workers' compensation payments. At June 30, 2001, there were 799 open workers' compensation claims dating back to 1970, which gave rise to a liability amounting to $8,090,267. We noted that $2,798,339 in workers' compensation claim payments were made during fiscal year 2001 for the current and prior year claims. During fiscal year 2001, County employees filed 187 new workers' compensation claims. The County paid approximately $293,784 on these new claims, and 1 S of these claims were closed by the end of the fiscal year. Information regarding the number and amount of workers' compensation settlements and claims closed during the fiscal year is not compiled by the Workers' Compensation Unit. 8 (Continued) COUNTY OF HAWAII STATE OF HAWAII Current Year Findings and Recommendations June 30, 2001 Recommendation We recommend that the County implement procedures to ensure that all open claims are reviewed periodically as a means to minimize costs to the County. This could include prioritizing open claims for review based on various characteristics such as the amount of the claim liability, the number of years open and the type of injury. The County should also consider the costs and benefits of hiring additional personnel with experience in handling workers' compensation claims and/or contracting third-party adjusters to review the open claims. The potential savings to the County in the form of a reduction in the number and payment on open claims may outweigh the additional costs of such procedures. Covnpilation and Analvsis of Accident Statistics The County is self-insured for workers' compensation and general liability. Therefore, it is imperative that the County pays 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 Health & Safety Division of the Office of Civil Service (Health & Safety Division) 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 Health & Safety Division employees, such information is not compiled because the division lacks the necessary staff to efficiently utilize available information and resources. Recommendation We recommend that the Health & Safety Division analyze available 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) COUNTY OF IIAWAI`I STATE OF' IIAWAI`I Current Year Findings and Recommendations June 30, 2001 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 1999. 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 (MD&.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 MD~iA 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 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 of Activities -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. ] 0 (Continued) COUNTY OF I€A~'VAI`I STATE OF I3AWAI`I Current Year Findings and Recommendations June 30, 2001 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. 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. 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 to implement the new pronouncement. 11 COUNTY OF I€AVO'AI`I STATE OF IIAVd'AI`I Status of Prior Y"ear Findings and Recommendations June 30. 2001 GENERAL FUND FINANCIAL STATUS Observation The County has experienced an increase in deficiencies of revenues and other sources over expenditures and other uses over the past few fiscal years. As a result, the County's unreserved general fund balance has decreased from $21.2 million as of June 30, 1997 to $16.1 million as of June 30, 2000. Recoreaanendatio® The County administration and County Council should work together to assess the County's present financial position and develop budgets to address future general fund financial performance. Status During fiscal year 2001, the County experienced another increase in the general fund deficiency of revenues and other sources over expenditures and other uses amounting to $9.7 million. As a result, the County's unreserved general fund balance decreased to $8.4 million as of June 30, 2001. As the County is well aware of this situation and continues to work on reducing overall spending and increasing revenues and collection on those revenues, comment will not be included as a current year finding. UTILIZATION OF TIIE INTERNET Observation The County's website could be improved in terms of content and functionality. Resornayeendation The County should develop a more functional and interactive website and continue to investigate electronic commerce options. The County should also consider reviewing other governmental agencies' and private businesses' websites to obtain additional ideas and information. Status The Department of Data Systems has made significant additions to the County's website during the past fiscal year to provide additional information and services to its residents, as well as to promote tourism and business development for the County. The Department of Data Systems is aware of the importance of its website, and continues to explore and improve its functionality and services provided via the Internet. Comment is no longer applicable. 12 (Continued) COUNTY OF HAWAII STATE OF HAWAII Status of Prior Year Findings and Recommendations June 30, 2001 COLLECTION OF RECEIVABLES Observation Sewer and landfill receivables outstanding for more than 90 days account for a significant portion of the respective receivable balances. The Department of Environmental Management 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 Environmental Management extends credit to all citizens and businesses regardless of credit history. Resoinraaenelation The Department of Environmental Management's management should perform the following procedures to monitor and evaluate the results of the collection agency's activities as reported by the agenc~~: 1. 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. The Department of Environmental Management 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. Stataas Comment is still applicable. 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. 13 (Continued) COUNTY OF I-€AWAI`I STATE OF ;EIAWAI`I Status of Prior Year Findings and Recommendations June 30, 2001 RISK 1VIAlelAGEMENT PROCESS Workers 'Compensation Claims Process Observati®n The Corporation Counsel attorney working in the Workers' Compensation Unit 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. Rec®mgaaee~eiati®n 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 The County has hired additional personnel and supervisory reviews are now being performed by experienced personnel. As such, the comment is no longer applicable. Compilation and Analysis of Accident Statistics Observati®n The Health & Safety Division does not compile and/or analyze statistics on the type, frequency and amount of claims relating to personal injury and property damage. Rec®anmeuciaYi®n The Health & Safety Division 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 IIAWAI`I STATE OF I3AWAI`I Status of Prior fear Findings and Recommendations June 30. 2001 COLLECTION OF DUILDING PERMITS Observation There is a lack of adequate segregation of duties over permit fee receipts at the Building Division of the Department of Environmental Management (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 applications and issue permits with duplicate or without numbers. RecoxYamenalation The County should segregate the cash collection, permit issuance and recording functions at the Building Division. Alternatively, the County could use pre-numbered permits and reconcile the cash and applications with the permits issued or move the cash collection function to the Treasury Division. Status The Building Division is currently in the process of arranging for cash payments to be processed at the Treasury Division. As the County has established a plan to segregate the cash collection function, the comment will be resolved in the near future. NEW GOVERNMENT REPORTING MODEL Observation The GASB issued a 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. Recoerncnendation 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 is required to implement the new reporting model for the fiscal year ended June 30, 2002. Comment is still applicable. Refer to the current year finding and recommendation. ]5 Harry Kim ~ ~ ,y ds~a~~S. Correa - ~ Poiace Cn~e~ ~s Co~,ty of Hawaii J~b9 Kapeodant Street Hilo, Hawaii 96'7':0.3998 (808)935-3311 Fax (808)961-8869 November 20, 2001 TO S KIRIU, LEGISLATIVE AUDITOR FROM L NCE K. MAI'IUNA, ACTING POLICE CHIEF SUBJECT: PRELIlVIINARY DRAFT MANAGEMENT LETTER NOVEMBER 6, 2001 We concur with the findings of the independent auditors of KPMG, LLP and add the following comments: An independent employee will need to have a background in driver's license in order to read the computer's audit screen effectively. N. Hilo and N. Kohala are limited in licensing functions and at times depend on the other districts to process transactions in the computer. This causes a shortage of fees collected in the other district if you are using the computer screen. Some functions in these two districts are not inputted into the computer until photo disk is received. At this time the Driver License Examiner in S. Kohala will reprocess all licenses on her computer and produce licenses permits. N. Hilo and N. Kohala need to be added into our current system to alleviate this problem. Daily work from the outside districts will be restrictive as finance sheets normally take between one to two days before reaching Hilo. In addition, permit applications remain at the districts until the applicant is issued a license. The County of Kauai is currently operating on a system created by System Innovators, Inc., and are using a software called "Cashier for Windows". This system has internal control features within it that is easier to use then our current computer system. All transactions entered are automatically transferred to the cash register, which is also connected to a computer. Discrepancies are noted at the end of the day if computer transactions do not match cash transactions. This system may be used at all districts and will eliminate many of the problems stated above. We are in the process of contacting System Innovators for more information. . . _ _ Jat~%oR k~!y i-tarry Kim "o Tom Bro~a~n 1d~~P _ - ~ - _ Adnumstrawr Mayor „ - . ' w. / ,T~` OF MP's` O ~ ~t J ~1 ~ v 1 ! 1 ~ `F County of ~-Iwaii Mass Transit Agency 2~ Aupuni Street Hilo, Hawaii 96720 • (808) 961-8343 Fax (808) 961-874 November 26, 2001 To: Connie Kiriu, Legislative Auditor From: Tom Brown, Transit Administra or Subject: Preliminary Draft Management Letter Below is the transit agency's response to the KPMG audit findings. "County of Hawaii Transit Agency will submit reimbursement requests in a more timely manner. Additional transit personnel will be involved in the preparation and submittal of the reimbursement requests." Please call me if you have any questions. Harry Kim ' r William Takaba ~IJ~g, - ~ ~ Dlrecrar i•: '•I t tf r Nance E. Crawford ''p~~~,~<~:'.: nn l.' 4r "6 Pry 3~ ~5 ` r'• U ~ Ii~ 4 G Depuh' D~recror ~TF~OF'06A:Ci C®unty ®f Hawaii Finance IDepartmect 25 Aupuni Svect. Room 118 Hilo, Hawaii 96720 (808)961-8234 Fax (808)961-8248 MEMORANDUM DATE: November 26, 2001 TO: Connie Kiriu, L1eg~is-lative Auditor FROM: Nancy Crawford, Deputy Director of Finance SUBJECT: Response to Preliminary Draft Management Letter Thank you for the opportunity to comment on the draft of the management letter from KPMG. Treasury betty Cash Fund In an effort to improve internal controls, we will implement the auditors' recommendations. Effective December 1, 2001, we will do random independent reconciliations of the petty cash funds at least once each month. The petty cash will be under stricter control of Treasury personnel. At times when the desk is not manned, the drawer will be locked and the- key will be secured. Also, the petty cash fund will be reduced by $5,000. Contract ~'~onatoring We understand the auditors' concerns. We will request an independent audit and management letter from the contractor. If an independent audit is not available, we will perform periodic reviews ofthe contractor's operations. We will consider adding an audit requirement, along with other recent recommendations regarding this contract, in the next request for proposal. Ne~a~ Governonent Reporting Model 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 two years, including identifying and assigning costs to the County's infrastructure assets and planning for asset depreciation. We have acquired an asset management and inventory software package that will provide the necessary information to comply with asset reporting requirements. ~~<~P i®i Dizie Kaetsu Ham' Kurt flavor 1 - ~fanagmg Director '•.a-' • • J~~ a ~r'~rt o~.°~P.g~P~ PCler T ~ Ol1IlE' Deputy Alanag~n,~ Director c~>our~tp Hof ~~~t`i 25 Aupuni Sveet. Room 215 • Hilo. Hawaii 96720-4252 • (808) 961-8211 • Fas (8081 96 1-6 5 5 3 I:ON.4: 75-5706 liuakini Highway. Suite 103 • ]tailua-bona. Hawaii 96740 (808)329-5226 • Faz(8081326-5663 ~ - ~ November 14, 2001 - ~ ~ To: Constance Kiriu, Legislative Auditor From: Dixie Kaetsu, Managing Director Re: Independent Auditors' Management Letter Information Technology Strategic Plan Thank you for the opportunity to review and comment on the recommendations of KPMG LLP relating to the establishment of a strategic planning process to develop a formal IT strategic plan. We agree that the recommendation has merit. We will pursue this when a Director of Data Systems is appointed. DEI'AI2TMENT OF ENVII20NMENTAL MANAGEMENT COU]`rTY OF HAWAII - - - HILO H.4V~'AII - ~ ~ I ` _ _ _ _ Q I f~C!' I ~ P.12~ 4~ Date November 16, 2001 To CONSTANCE KIRIU, Legislative Auditor From GALEN KUBA, Acting Director SUBJECT: PRELIMINARY DRAFT MANAGEMENT LETTER Collection of Receivab9es We have reviewed the subject draft and have the following comments: 1. In general, we concur with the recommendations being made. 2. Efforts to develop consistent policies should also include the Office of the Corporation Counsel. Legal remedies need to be carefully considered to minimize the transference of the problem to their Office as they already have a backlog. 3. As a short term goal, the Department is planning to consolidate the accounting activities of the Solid Waste and Wastewater Divisions. lay doing so, it is also our intent to establish uniform policies and procedures for all accounting matters including accounts receivable. Thank you for giving us an opportunity to comment. If you have any questions, please call me at x8084. c: Wwm (w/memo from Legislative Auditor) Swm (w/memo from Legislative Auditor) Inter-3001 .wpol 13 ) Jaiy:c~•`•'?~ Ham' 1~im ~o.• 9., ;~tichac[ F. &n, ~PHP~ '~~y" ~ - - ~,r~ ~ < . i O ai :ao~ p~~ 11C,m!(li 'Jlrfi tOr i ! 3'tTS.h.•t. Courtly o f I-~awai`i Depctrtrr~ertt of Civic Service Hilo Lagoon Centte ~ 101 Aupuni Street, Suite 133 • Hilo, Hai+ui'i ~ 967°_0--i~6(~ Pkone (SOS) 961-8361 • Fai (S08) 961-8617 • TDD (8081 961-R619 • Job Hotline (808? 961-8618 • e-mail: cofuiLsCRinuroci.ntt November 21, 2001 Ms. Constance Kiriu, Legislative Auditor 25 Aupuni Street Hilo, Hawaii 96720 Dear Ms. Kiriu: This is in reply to your November 9, 2001 memorandum regarding Preliminary Draft Management Letter November 6, 2001, You asked that we comment on the "Risk Management Process" and provide you with an updated report of claims paid this fiscal year, and claims that are opened and our current liability amount. C®rnrr~ents We appreciate and welcome the comments and recommendations offered by KPMG, LLP. With respect to the recommendation that "the County implement procedures to ensure that all open claims are reviewed periodically as a means to minimize costs to the County," we concur with the recommendations. In fact, staff has in place a system whereby we prioritize claims for handling/processing. Unfortunately, because of staff limitations we fall short of using the system effectively. Thus, we also concur with the second recommendation which is to "consider the costs and benefits of hiring additional personnel with experience in handling worker's compensation claims and/or contracting third-party administrators to review the open claims." Additional personnel, in our opinion, should not be limited to only adjusters and clerical support staff. We need to consider hiring additional or special deputy corporation counsel(s) who are experienced in presenting cases before the Labor Appeals Board and in pursuing legal action against anyone who perpetuates workers' compensation fraud. For your information, we note that Maui and Kauai Counties have TPAs handling their workers' compensation claims. The City and County of Honolulu utilizes 12 Ms. Constance Kiriu, Legislative Auditor November 21, 2001 Page 2 of 3 adjusters in handling 1400 to 1500 open claims (which is an average of 116 to 125 claims per adjuster). With 9,000 employees, their open claims amount to 16°,6 of the number of employees. The State of Hawaii, with an employee base of 45,000, has approximately 1400 open cases fora 3°~6 ratio. With 12 claim adjusters, the caseload per adjuster is approximately 116. Compare this with Hawaii County which has two adjusters handing 800 open claims (400 per adjuster) and with 2200 employees, the open claims represent 36% of the employees. These numbers are, in simple terms, shocking. Our workers' compensation program has been neglected and has become almost like a cancer to the County. It continues to slowly grow and we need to control and manage it better. Help is needed. Thus, we would add to the recommendations that third party assistance, with expertise and experience in workers' compensation matters, be hired to audit and evaluate our existing program to arrive at specific recommendations for the program. This recommendation comes from our involved staff who wish to have an effective and efficient program that they can be proud of. They are open to a critical review by knowledgeable personnel knowing that this process would, with administrative support, ultimately result in a more effective and efficient workers' compensation program. A third recommendation from KPMG is that statistical information and analysis be conducted on the type, frequency, and amount of claims relating to personal injury and property damage while a fourth recommendation is that we analyze available statistics, and with the assistance of the affected departments, formulate policies and procedures to mitigate personnel injury and property damage. We have already initiated efforts with respect to these two recommendations. In our program objectives for FY 2001-2002, we included the following: "24. Conduct a comprehensive review of departments and agencies to evaluate their internal safety programs and levels of commitment to workplace safety by September 2001. 25. Assist departments and agencies with corrective action by the end of FY 2002, of any deficiencies identified in the comprehensive review. 26. Reestablish, by January 2002, a reporting and record keeping system of workplace injuries and property damage for purposes of identifying and targeting safety deficiencies in need of corrective measures." Ms. Constance Kiriu, Legislative Auditor November 21, 2001 Page 3 of 3 These goals demonstrate our concurrence with the recommendations by KPMG, LLP; we are of the same school of thought. Admittedly, we are behind in our timetable because of a decay in hiring our heath and safety administrator (who was hired in July 2001 and was immedeately faced wltf i having to address personnel concerns in our workers' compensation unit). Nevertheless, we are committed to achi®ving these goals by the end of FY 2001-2002. Rggisa~~t~d Upd~s ®f 1®/31 /01) Claims paid for this fiscal year S 1,068,412 Opened workers' compensation claims 827 Liability amount 58,085,986 We look forward to hearing from the County Council on these matters so that we may discuss our mutual concerns about our health and safety program. Sincerely, Michael R. Ben, SPHR Director of Personnel cc: Dixie Kaetsu, Managing Director William Takaba, Finance Director Lincoln S.T. Ashida, Corporation Counsel . _ ~~~'I®~V 11 ~ C~NI~RI~~S/1/~ ~N1Vt1a4L ~IIVA~I~I~~ ~fi ~~I~I ~IIV T C~ is~l. ~'~ar ~ .Tug 0, X001 w ~ ~.r~-...d,.~. ...v.~,...m„~...~, a,~ ~ ~ ~ ® ~ VII Iii®, ~aii marry Kim Mayor Dixie Kaetsu Managing Director Prepared by The Department of Finance William Takaba Director of Finance COUNTI' OF I-IAWAII Comprehensive Annual Financial Report For the Fiscal Year Ended June 30. 2001 Table of Contents Page INTRODUCTORI' SECTION Letter of Transmittal 1 GFOA Certificate of Achievement 13 Organization Chart 14 List of Elected Officials 15 List of Principal Officials l6 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 31 Notes to the Combined Financial Statements 33 FINANCIAL SECTION (Continued) Pa e Supplemental Information: General Fund: Comparative Balance Sheets 67 Comparative Statements of Revenues, Expenditures and Changes in Fund Balances 69 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) 70 Special Revenue Funds: Combining Balance Sheet 76 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 78 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -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, Expenditures 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 Workforce Investment Act Fund -Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual (Budgetary Basis) 94 FINANCIAL. SECTION (Continued) Paae Supplemental Information (continued): Debt Service Funds: Combining Balance Sheet 9~ 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} 109 Combining Statement of Cash Flows 110 Trust and Agency Funds: Combining Balance Sheet 111 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 116 General Long-Tergn Debt Account Group: Schedule of General Long-Term Debt 12l 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 l -General Governmental Revenues and Expenditures Comparison 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 Chan 3 -General Governmental Revenues by Source 131 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 142 Table 9 -Ratio of Annual Debt Service Expenditures for General Obligation Bonded Debt to Total General Governmental Expenditures l43 Table 10 -Demographic Statistics 144 fiable 11 -Property Value, Construction and Bank Deposits 145 Table 12 -Miscellaneous Statistical Data 146 INTIZODUCTOIZY SECTION ~v ®r Harry Kim ~ William Takaba mac. Director Mawr . Nanc` E. Cra~~ ford ••i+~!:~o :'•P~` Depun~ Dtrector are ®a•eend County of Hawaii Finance Department 25 Aupuni Street, Room 118 Hilo, Hawaii 96720 (808)961-8234 Fax (808)961-8248 October 26, 2001 The Honorable Mayor and Members of the Council County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 We transmit herewith the Comprehensive Annual Financial Report for the County of Hawaii, State of Hawaii, for the fiscal year July 1, 2000 to June 30, 2001. 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, 2001 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- -1- autonomous body of the County government. This component unit is included in the County's reporting entity because of its financial relationship with the County. The County provides 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 of Hawaii consists of the island of Hawaii, 4,038 square miles in size. It is twice as large as the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there is no other local or municipal government within the County, there are no overlapping taxes and no overlapping debt. The County of I-Iawai`i has an elected mayor and a nine-member council. Econoffiic 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, adeep-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 tourism and foreign investment in the state. However, evidence of economic expansion has led to widespread agreement among local economists that the long slump of the 1990s is finally over. The County's unemployment rate in the first half of 2001 averaged 6.8 percent, relatively unchanged from 6.7 percent last year. Tourism - In addition to the mild climate and natural beauty it shares with other azeas 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 tourism in the County continue to remain positive, with hotel occupancy rates for 2000 at 72.8 percent, up from 67.4 percent for the same period the previous year. Total visitors to Hawaii fell 3.0 percent to 1,267,966, per the Department of Business, Economic Development and Tourism - 2000 Annual Visitor Research Report. Seventy-three percent of all Hawaii island visitors were from the domestic United States mainland, while the remaining 27 percent were from foreign countries. A developing source for bringing tourists to the island of Hawaii is the cruise ship industry. Cruise ship arrivals are expected to increase 95% from the prior year, according to First Hawaiian Bank's economic forecast for the County. Construction - The construction industry continues to improve, as the value of building permits issued increased for the fourth straight year in 2000. Most of the grotirth 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. Agricultural output remained steady at $15~ million, with declines in coffee and macadamia being offset by increases in nursery and foliage crops, papaya, banana and aquaculture, according to First Hawaiian Bank's economic forecast for the County. .September 11, 2001- The terrorist acts of September 11, 2001 in Washington, DC and New York City, the continuing anthrax mail threats since, and the "war on terrorism" have led to potential weaknesses in some of the County's revenue sources, primarily the transient accommodation tax received from the State. While the ultimate impact is not yet known, the County is taking actions to reduce costs for fiscal year 2002. Major Initiatives For the Year During the year, the County focused on the flood, public safety, planning, and other issues affecting the quality of life in the County. Flood -The torrential rains and flooding on November 1-2, 2000 were by far the most major events of the past fiscal year. The island of Hawaii was declared a major disaster area by President Clinton. This allowed for federal relief and recovery assistance to the affected areas. All departments assisted in the recovery efforts. The Civil Defense Agency directed and coordinated the County's effort during the disaster, including evacuation of affected areas and other disaster response operations. The Fire Department performed several rescue and evacuations of victims trapped in their homes or vehicles, including the rescue of isolated families by helicopter. The Department of Public Works employees removed debris, repaired roads and reestablished access to areas cut off by the flood damage. The flood damage cut off road access to the residents of Pahala. One of the flood projects that department personnel performed received an award of recognition from the American Public Works Association. This project consisted of County crews constructing an eleven and a half mile State Route I 1 bypass road for the Pahala residents in one week. Other departments assisted with evacuation centers and answering the numerous phone calls from County residents. The County expects to receive over $10 million in federal assistance relating to the flood. The flood-damaged Komohana Street Bridge was constructed at a cost of over $4 million, funded entirely with federal funds. The bridge was opened to the public within four months. The recovery efforts will continue into next fiscal year as repair and cleanup projects continue to be completed. -3- Public Works -The $7 million renovation of the One Pauahi County office facilit}~ was begun during the year. In addition, ground was broken and construction begun on the Mohouli Street Extension and Puainako Street Extension. Public Safety - In 2000, police eradicated 106,639 marijuana plants and seized more than 42 pounds of processed marijuana. 4.1 pounds of heroin, 7.9 pounds of cocaine. and 1.8 pounds of crystal methamphetamine, resulting in 1,143 arrests. In addition, $189,701 in United States currency and $131,500 work of vehicles were seized for forfeiture. General Plan -The Planning Department continued its 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. Several drafts have been presented for public review and numerous public meetings have been held during the fiscal year. The Planning Commission is currently reviewing the draft update. Parks and Recreation - In July 2000, Lili`uokalani Gardens was reopened after extensive renovations and landscaping by the Department of Parks and Recreation. The park is open to people of all ages to enjoy free of charge. Workforce InvestonentAct -The Office of Housing and Community Development is the County agency 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 began July 1, 2000. Services were provided to 685 adults, 676 recently laid-off workers, and 427 youth during the fiscal year. Technology -The County implemented its first Internet-based electronic commerce application. The Department of Parks and Recreation now has an on-line camping permit system on the Internet that evas activated in January 2001. Internet users from around the nation and the world can now check campsite availability, make a reservation, and pay online via credit card. From the start of the 2000-01 Council term, the County Council records are now available via computer on the County Clerk's in-house computer system. All communications, resolutions, ordinances, meeting minutes, and other documents are included for easy accessibility. The County began implementation of a geographic information system (GIS) during the year. Installation and use of special GIS mapping hazdwaze and software were initiated by the County Clerk's Election Office. This allowed the Election Office to assist with the reapportionment based on the 2000 United States Census. For the Future GASB 34 -The County is required to implement Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements-and Management 's Discussion and Analysis for State and Local Governments (GASB 34) during fiscal year 2002. GASB 34 will result in significant changes to the County's financial statements. The County is already in the process of -4- accumulating the necessary data for this change and will continue to move forward with its implementation plan. Public Works -The County is working on acquiring a West Hawaii Services Center from the State. This facility will improve access to government for the Kona residents. 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. Public Safety -The Fire Department is planning for at least two new fire stations in the coming years. This will help to deliver improved fire protection to our more rural areas of the island. heal Property Taxes -The County plans to begin work on updating the real property tax code in an effort to ensure fairness to all taxpayers. In addition, the County plans to be more aggressive in its collection of real property tax delinquencies. Lava VieBVing Prograon - In order to provide a safe viewing area for residents and visitors alike, the County plans to develop a Lava Viewing Program to provide public access to the current lava flows in a controlled setting. Financial Inforffiation 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 awazded 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 ~°unctions The following is a summary of operations for the fiscal year ended June 30, 2001, including the general fund, special revenue funds, and debt service fund. Revenues -Revenues in fiscal 2001 totaled $162,686,653, a 7.4% increase from the previous year. The amounts of revenues from the various sources and changes from last yeaz follow: Increase Percent of Percent (Decrease) Increase Source Amount of Total From 2000 (Decrease) Taxes and assessments $95,467,058 58.7% $2,143,52 2.3% Licenses and permits 7,411,672 4.6 150,483 2.1 Intergovernmental 39,488,813 24.3 6,916,375 21.2 Charges for current services 12,056.552 7.4 841,702 7.5 Fines and forfeitures 343,193 0.2 (58,588) (14.6) Interest and penalties 6,408,553 3.9 1,127,040 21.3 Miscellaneous 1,510,812 0.9 29,637 2.0 Total $162.686.653 100.0% $11.150.2.01 7.4 The County's largest single source of revenues, taxes and assessments, showed a small increase during the year and contributed 58.7% 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 $1.0 million more than the prior fiscal year, and accounted for a portion of the increase during the yeaz. Assessments are based on 100% of fair mazket value, and reflect increasing property values county-wide. Tax rates remained unchanged from the prior yeaz. Franchise tax revenues were $.8 million more than the prior fiscal year, and fuel tax revenues were $.3 million more than the prior fiscal year, as a result of an increased tax base for these taxes. -6- Intergovernmental revenue increased 21.'?0 o to $39,488,813 as a result of $3.5 million in ne~~~ federal Workforce Investment Act funds used to provide employment and training ser`~ices to economically disadvantaged adults, dislocated workers and youth. In addition, $1.7 million in federal funds were received for mass transit bus purchases and the transient accommodation taa received from the State increased by $1.0 million from last fiscal year. Charges for services increased 7.5°ro to $12,06,552 as a result of efforts to recover a higher percentage of costs through user fees and charges to those benefiting from various services. Interest and penalties increased 21.3% to $6.408,553 as a result of higher interest rates on our cash and investments. Taxes 59% Licenses 5% tergovernmental 24% Miscellaneous 1% Interest penalties 4% Charges for services 7% X001 Revenues by Source -7- Miscellaneous Interest & penalties Fines and forfeitures Charges for serv+ces Intergo~mmental Licenses & permits Taxes ° o 0 0 °o c~ °o o °o °o g 0 0 0 0 0 0 0 0 0 0 ~ N M ~ ~ CD ~ OD ~ O ®200 ~ ~ 2000 Q (WOOD) C®~paris®n ®f Revenues by Source - ~Y 2000 and 2001 Expenrlatures -Expenditures for general government purposes in the fiscal year ended June 30, 2001 totaled $165,470,877, an increase of 6.0% 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 2000 (Decrease) Public safety $ 59,390,729 35.9% $ 995,911 1.7% General government 22,072,687 13.3 630,754 2.9 Highways and streets 9,998,223 6.0 1,991,896 24.9 Sanitation 13,480,697 8.2 624,617 4.9 Health, education, welfare 8,343,772 5.1 3,265,042 64.3 Culture and recreation 12,085,099 7.3 559,023 4.9 Pension and retirement contributions 3,679,334 2.2 (1,961,469) (34.8) Health fund 10,773,063 6.5 1,228,854 12.9 Miscellaneous 4,040,039 2.4 (183,714) (4.3) Capital outlay 3,792,304 2.3 1,044,146 38.0 Debt service 17,814,930 10.8 1,194 388 7.2 Total $165.470,877 100. % 9 3 9 448 ..~•Q -8- The expenditure for highways and streets increased $?.0 million during the year due to the purchase of new buses for the transit agency. The expenditure for health, education and welfare increased 64.3% to $8,343.77? as a result of the new federally-funded Workforce Investment Act program that provides employment and training services to economically disadvantaged adults, dislocated workers and youth. The actuarially-determined contribution to the Employees' Retirement System of the State of Hawaii required during the year was $2.0 million less than the prior year's requirement because of changes in actuarial assumptions adopted by the state legislature. The expenditure for health fund increased 12.9% to $10,773,063 due to an increase in health insurance premiums during the fiscal year. The expenditure for capital outlay increased 38.0% to $3.8 million because of higher expenditures during the year for federally-funded Community Development Block Grant and HOME Program projects. Capital outlay 2% Miscellaneous 3% ®ebt service 11 hiealth fund 7% Pensions 2° Culture/ Public Safety 36% rec 7% Genera! govt: 13% FiEW 5 ; Sanitation ' f-~ighways ~ streets 6% X001 expenditures by Functi®n -9- _ Debt service Capital outlay Misc Health fund Pension/retire Culture 8 recreation HEW Sanitation Highways ~ streets General govt Public safety 0 0 _ o _°c~ °0 0 0 ~ 0 0 o a o 0 O N f+"l ~ ~ CO X2001 X2000 ($000) ~®rriparis®n ®f ~xperaditures by ~~ancti®n - FY 2000 end 2001 General Fund ~adance The unreserved fund balance for the general fund amounted to $8.3 million at June 30, 2001. All of this amount was designated for various purposes, including $5.5 million that was projected and anticipated as revenue to finance the ensuing fiscal year 2002 operating budget Enterprise Operations Kudaireaarao Edderdy ~Iousin~ Project -The operating revenue of this fund totaled $227,800 during the fiscal year, a decrease of $7,125 from the prior yeaz. Operating expenses were $150,197, down $28,323 from last year. Interest paid on long-term debt exceeded interest earned on investments by $40,816. Net income for this fiscal yeaz was $36,787. Ouli Ekalai Affordable pdousing Project -The operating revenue of this fund was $215,110, up from $202,456 in the prior year. After operating expenses of $199,925 and interest income of $464, the net income for the year was $15,649. -10- Component Unit -Department of Water Supply Water sales totaled $22,571,053, an increase of $1,606,36 over the prior yeaz. Operating expenses of $25,963,840 are $2,053,971 higher than last year, resulting in an operating loss of $3,392,787. Nonoperating revenues (primarily contributions in aid of construction and interest earnings) net of nonoperating expenses (primarily interest expense) totaled $10,~23,~08, resulting in net income of $7,130,721. Pensio~t Plan All full-time employees of the County participate in the Employees' Retirement System of the State of Hawaii, acost-sharing, multiple-employer defined benefit public employee retirement system. Debt ~4da~dtaistration The County has drawn down on fourteen 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, 2001 (net of repayments) totaled $34,394,028. The total debt outstanding at June 30, 2001 was $176,747,282 (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, 2001, the County's net general obligation bonded debt of $156,636,220 was well below the legal limit of $1,512,507,548. Cash 1llanagement Cash temporarily idle during the year was invested in demand deposits, certificates of deposit and repurchase agreements. The average yield on investment was 6.46%. The County's policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, with the exception of $201,022 held by bond paying agents and a rental management agent, deposits were either insured by federal depository insurance, collateralized, or secured by irrevocable letters of credit. All collateral on deposit was held for safe keeping with aCounty-designated agent in the County's name. I,~isk 112anagement 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. -11- Other Information dndependent 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. Enapdoyee Union Contracts County employees are members of seven different bargaining units. All of the bargaining units have contracts that run through June 30, 2003. Certificate of.~claieven:ent 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, 2000. This was the thirteenth consecutive year that the government has achieved 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 period 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. tdcknowdedganents 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. WILLIAM TAKAI3A Director of Finance -12- . . C~rti~iCat~ ®f AC~iwernent for ~C~11~nC~ ln. inX1C1~.1 Fortin Presented to County of ~~1~1~11 For its Comprehensive Annual Financial Report for the Fiscal Year Fnded June 30, 2000 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. \a~ce E~q~ga l~ . 4 UMRED S RTES y w AkD H ~ resident C~tPDRATIDN Js ~~c. goy ~g CMICA6~ Executive Director -13- . County of Ha~~aii Organization Ch~r°t County Electorate County Council 1l~ayor Prosecuting Attorney County Cierk Office of Management: Managing Director Departments and agencies Agencies under Departments under under direct supervision administrative supervision commissions and of the Mayor and/or of the Mayor: administrative supervision Managing Director: of the Mayor: Corporation Counsel Civil Defense Civil Service Finance Office ofAging Police Planning Mass Transportation Liquor Control Environmental Management Housing & Community Fire Research & Development Development Water Supply Public Works ("semi-autonomous) Parks c~ Recreation Data Systems - 14- County of Hao~aii Elected Officials Administrative Officers (Term: 2000-2004) Harry Kim Mayor Jay T. Kimura Prosecuting Attorney County Council (Term: 2000-2002) James Y. Arakaki Chair J. Curtis Tyler, III Vice Chair Aaron S.Y. Chung Member Leningrad Elarianoff Member Julie Jacobson Member Lobby Jean Leithead-fiodd Member Nancy Pisicchio Member Gary Safarik Member llominic Yagong Member -15- _ Principal Officials June 30. 2001 County Clerk Al Konishi Legislative Auditor Connie Kiriu Managing Director Dixie Kaetsu Deputy Managing Director Peter Young Corporation Counsel Lincoln Ashida Director of Finance William Takaba Planning Director Christopher Yuen Director of Personnel Michael R. Ben Director of Research and Development Jane Testa Chief of Police James Correa Fire Chief Edward Bumatay Director of Public Works Dennis Lee Acting Director of Environmental Management Galen Kuba Director of Parks and Recreation Patricia Engelhard Manager, Department of Water Supply Milton Pavao Civil Defense Administrator William G. Davis Director of Liquor Control Janice A. Pakele Transit Operations Administrator Thomas Brown Executive on Aging Alan Parker Administrator, Office of 1-lousing and Community Development Edwin S. Taira -16- ~IN~1~1CIAoI, SECTION P. 0. Box 4150 Honolulu, HI 96812-4150 Independent Auditors' Iaeport To the Chair and Members of the County Council County of 1-Iawai`i State of I-Iawai`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, 2001, as listed in the table of contents. 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, 2001, 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 26, 2001 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 conducted for the purpose of forming an opinion o<< the general 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 I-Iawai`i. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairl}~ 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. ~ Honolulu, Hawaii October 26, 200 ] -18- 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 aself-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 be rendered 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. PIJIZPOSE FINANCIAL STATEIVI~NTS -21- COUNTY OF I-IAWAII Coffibined Balance Sheet All Fund Types and Account Groups and I)iscretel~~ Presented CoYnponent Unit June 30, 2001 (With comparative totals for June 30, 2000) Proprietan~ Governmental Fund Types Fund Type Special Debt Capital General Revenue Service Projects Enterarise Assets and Other Debits Cash and investments (notes 3 and 16): Cash and cash equivalents $ 2,117,678 $8,865,870 $ 379,888 $ 4,378,397 $ 332,057 Investments 11,12S,693 7,950,000 10,515,417 33,500,000 500,000 Imprest and change funds 26,120 2,400 150 Receivables: firade, net of allowance for doubtful accounts 1,666,872 23,055 Real property taxes 9,964,717 Due from other governments 3,744,739 516,261 10,960,413 Due from other funds (note 4) 4,282,904 163,476 25,295 Other 244,976 528,866 11,983 2,737 Inventories 2,152,663 Prepaid expenses 1,865 Restricted assets (note 3): Cash and cash equivalents 664,556 1,410 218,810 Investments 105,000 Loans receivable Fixed assets, net of accumulated depreciation where applicable (notes 5, 7 and 16) 1,479,349 Deferred charges - Amount available in debt service funds Amount to be provided for retirement of general long-term debt Total assets and other debits $34,429,046 $19,693,745 $10,895,305 $48,877,498 $2,558,023 See accompanying notes to combined fmancial statements. -22- Fiduciary Totals - Component Fund Types Account Groups Primary Unit Totals - General Government Department Reporting Entity Trust and Long-Term General (Memorandum of (Memorandum Only) AeencX Debt Fixed Assets O( nly) Water Sunnly June 30, 2001 June 30, 2000 $11,458,458 $ $ $ 27,532,348 $ 11,049,826 $ 38,582,174 $ 34,202,501 1,821,472 65,412,582 5,873,685 71,286,267 95,897,890 100 - 28,770 12,833 41,603 38,826 - 1,689,927 2,694,341 4,384,268 3,574,709 9,964,717 m 9,964,717 10,193,392 25,343 15,246,756 15,246,756 6,260,214 3,554,627 8,026,302 8,026,302 5,74,445 847,974 - 1,636,536 153,807 1,790,343 2,687,377 _ 2,152,663 700,000 2,852,663 2,765,529 1,865 11,767 13,632 8,914 1,400,000 2,284,776 2,284,776 2,704,034 105,000 9,747,301 9,852,301 9,338,278 745,800 745,800 756,200 353,106,161 354,585,510 t53,730,150 508,315,660 464,922,760 4,578,888 4,578,888 4,190,617 10,470,807 10,470,807 10,470,807 9,785,133 210.622,287 210,622,287 210,622,287 216,355,224 $19,107,974 $221,093,094 $353,106,161 $709,760,846 $189,298,398 $899,059,244 $869,436,043 (Continued) - 23 - COUNTY OF HAWAII Combined Balance Sheet All Fund Types and Account Groups and Discretely Presented Component Unit June 30, 2001 (With comparative totals for June 30, 2000) Proprietary Governmental Fund Types Fund Tv~e Special Debt Capital General Revenue Service Projects Enter_arise Liabilities, EauitX and Other Credits Liabilities: Warrants payable $ 2,401,037 $ 1,285,908 $ - $2,438,142 $ 14,432 Accounts payable 1,790,912 1,394,276 1,047,916 1,063 Due to other funds (note 4) 3,150,129 992,161 - 2.198,715 1,799 Due to federal government -arbitrage rebate 229,253 Accrued liabilities 37,640 ]91,846 7,729 Customer advances and deposits Deferredrevenue(note6) 11,466,823 2,104,800 1,156,312 2,418 Customer deposits payable from restricted assets - 26,367 Bonds payable (notes 9 and 16) Notes payable (note 9) 1,117,954 Other general long-term debt (notes 7, 8, 9, 13, 14 and 16) Assets held for the benefit of improvement districts Other 576,059 1,386 Total liabilities 19,614,213 5,814,785 191,846 6,842,471 1,171,762 Equity and other credits: Investments in general fixed assets Contributed capital (notes l0 and 16) 955,663 Retained earnings (note 12): Reserved 176,019 Unreserved 254,579 Fund balances (notes 9 and 12): Reserved 6,504,144 3,194,383 10,703,459 27,278,349 Unreserved: Designated 8,310,689 6,367,388 5,403,432 Undesignated 4,317,189 9,353.246 Total equity and other credits 14,814,833 13.878,960 ]0,703,459 42,035,027 1,386,261 Total liabilities, equity and other credits $34,429,046 $19.693,745 $10,895,305 $48.877,498 $2,558,023 See accompanying notes to combined financial statements. -24- (Concluded) Fiduciary Totals - Component Fund Types Account Groins Primary Unit Totals - General Government Department Reporting Entire Trust and Long-Term General (Memorandum of (Memorandum Only? A enc Debt Fixed Assets Only Water Supaly June 30, 2001 June 30, 2000 $ 1,695,712 $ - $ $ 7,835,231 $ 740,120 $ 8,575,351 $ 7,235,187 14,941 4,249,108 1,492,077 5,741,185 5,062,946 1,683,498 8,026,302 8,026,302 5,754,445 229,253 229,253 358,074 1,117,731 1,354,946 2,054,811 3,409,757 3,119,703 115,063 115,063 135,060 250,123 391,899 14,730,353 14,730,353 13,961,952 - 26,367 9,747,301 9,773,668 8,648,668 130,512,500 130,512,500 10,722,800 141,235,300 149,255,200 1,117,954 1,117,954 1,135,139 90,580,594 90,580,594 90,580,594 88,534,357 5,351,754 5,351,754 5,351,754 5,045,445 577,445 577,445 699,879 9,978,699 221,093,094 264,706,870 24,892,169 289,599,039 289,202,894 353,106, ] 61 353,106,161 353,106,161 316,385,234 955,663 100,804,252 101,759,915 107,200,147 176,019 ] 76,019 172,541 254,579 63,601,977 63,856,556 51,236,645 4,141,338 51,821,673 51,821,673 56,055,894 312,998 20,394,507 20,394,507 27,014,184 4,674,939 18,345,374 18,345,374 22,168,504 9,129,275 353,106,161 445,053,976 164,406,229 609,460,205 580,233,149 $ ] 9,107,974 $221,093,094 $353,106,161 $709,760.846 $189,298,398 $899,059,244 $869,436,043 -25- _ COUNTY OF HAWAII Cognbined StateYnent of Revenues, Expenditures and Changes in Fund Balances All GovernYnental Fund Types and Expendable 'Trust Funds For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Governmental Fund Tvpes Special Debt Capital Genera] Revenue Service Pr, ojects Revenues: Taxes and assessments $84,240,154 $11,226,904 $ $ Licenses and permits 3,802,230 3,609,442 Intergovetnattental 35,183,223 4,305,590 15,545,326 Charges for current services 2,718,060 9,338,492 Fines and forfeitures 343,193 Rents 23,511 - interest and penalties 6,408,553 24 Miscellaneous 1,014,506 472,795 675,192 Total revenues 133,733,430 28,953,223 16,220,542 Expenditures: Current: General government 22,071,389 1,298 3,993,441 Public safety 56,713,030 2,677,699 1,015,074 Highways and streets 3,076,391 6,921,832 18,958,706 Sanitation 1,053 13,479,644 4,762,148 Health, education-.and welfare 4,861,737 3,482,035 Culture and recreation 11,325,626 759,473 5,124,893 Pension and retirement contributions (note 15) 3,051,978 627,356 Health fund (note 15) 9,784,824 988,239 Miscellaneous 2,949,546 1,090,493 1,887 Capital outlay 3,792,304 Debt service: Interest and Pittance charges 156,508 8,259,317 Principal retirement 495,763 8,903,342 Total expenditures 118,280,149 30,028,069 17,162,659 33,856,149 Excess (deficiency) of revenues over expenditures 15,453,281 (1,074,846) (17,162,659) (17,635,607) Other financing sources (uses): Sale of general fixed assets 16,438 lntergovernmentalloans 3,422,395 Proceeds fi-om sale of bonds Proceeds from sale of refunding bonds Payment to refunded bond escrow agent Increase in capital leases 22,953 Operating transfers in 135,868 5,893,779 17,965,433 4,629,494 Operating transfers out (25,359,212) (3,209,157) fiotal other financing sources (uses) (25,183,953) 2,684,622 17,965,433 8,051,889 Excess (deficiency) of revenues and other sources over expenditures and other uses (9,730,672) 1,609,776 802,774 (9,583,718) Fund balances at beginning of year 24,554,099 12,269,184 9,900,685 51,618,745 Increase (decrease) in reserve for inventories _ (8,594) m Fund balances at end of year $14,814,833 $13,878,960 $10,703,459 $42,035,027 See accompanying notes to combined financial statements. -26- Fiduciary Totals Fund Type (Memorandum Only) Expendable Trust 2001 2000 $ $95,467,058 $93,323,506 7,411,672 7,261,189 9,121,565 64,155,704 46,068,383 12,056,552 11,214,850 343,193 401,781 - 23,511 120,744 305,974 6,714,551 5,534,124 367,251 2,529,744 2,697,719 9,794, 790 188,701,985 166,622,296 26,066,128 22,092,457 60,405,803 58,990,317 28,956,929 17,220,221 - 18,242,845 18,078,007 7,341,467 15,685,239 12,702,951 17,209,992 14,955,323 163,712 3,843,046 5,779,431 10,773,063 9,544,209 4,041,926 4,275,580 3,792,304 2,748,158 8,415,825 7,758,781 9,399,105 8,861,761 7,505,179 206,832,205 183,007,196 2,289,611 (18,130,220) (16,384,900) 16,438 28,387 3,422,395 5,530,217 0 29,877,561 0 18,775,575 0 (18,775,575) 22,953 2,676,995 28,624,574 25,647,448 (56,205) (28,624,574) (25,647,448) (56,205) 3,461,786 38,113,160 2,233,406 (14,668,434) 21,728,260 6,895,869 105,238,582 83,488,834 (8,594) 21,488 $9,129,275 $90,561,554 $105,238,582 -27- COUNTY OF HAWAII Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetar`~ Basis) General and Special Revenue Fund Types For the Fiscal Year Ended June 30, 2001 General Fund Special Revenue Funds Variance - Variance - Favorable Favorable Budset Actua] (Unfavorable) Budeet Actual ,(Unfavorable) Revenues: Taxes and assessments $84,508,500 $84,240,154 ($268,346) $10,096,110 $11,226,904 $1,130,794 Licenses and permits 3,625,836 3,802,231 176,395 3,202,500 3,609-,442 406,942 Intergovernmental 36,318,318 33,713,719 (2,604,599) 1,285,358 1,548,019 262,661 Charges for current services 2,385,563 2,718,060 332,497 8,956,725 9,338,492 381,767 Fines and forfeitures 709,500 343,193 (366,307) Rents 139,200 23,511 (115,689) interest and penalties 5,770,250 6,193,510 423,260 _ Miscellaneous 2,638,254 2,614,312 (23,942) 190,657 472,795 282,138 Total revenues 136,095,421 133,648,690 (2,446,731) 23,731,350 26,195;652 2,464,302 Expenditures: Current: General government 23,672,857 20,893,821 2,779,036 150,000 150,000 Public safety 59,499,575 56,468,250 3,031,325 3,218,512 2,663,679 554,833 highways and streets 1,783,448 1,774,771 8,677 8,054,545 6,649,062 1,405,483 Sanitation 48,540 477 48,063 13,555,446 12,600,518 954,928 1-Iealth, education and welfare 5,503,431 5,238,536 264,895 529,599 521,072 8,527 Culture and recreation 11,795,448 11,265,589 529,859 785,145 764,736 20,409 Pension and retirement contributions 3,229,403 3,071,376 158,027 1,114,941 627,357 487,584 I-Iealth fund 9,695,818 9,695,756 62 1,164,930 988;239 176,691 Miscellaneous 4,010,737 3,022,408 988,329 2,734,870 1,701,556 1,033,314 Capital outlay 3,400,148 3,400,148 Total expenditures 122,639,405 114,831,132 7,808,273 31,307,988 26,666,219 4,641,769 Excess (deficiency) of revenues over expenditures 13,456,016 18,817,558 5,361,542 (7,576.638) (470,567) 7.106,071 Other financing sources (uses): Operating transfers in 184,408 135,868 (48,540) 6,647,386 5,893,779 (753,607) Operating transfers out (27,913,256) (26,923,183) 990,073 (3.257,697) (3,209,157) 48.540 fiotal other financing sources (uses) (27,728,848) (26,787,315) 941,533 3,389,689 2,684,622 (705,067) Excess (deficiency) of revenues and other sources over expenditures and other uses (14,272,832) (7,969,757) 6,303,075 (4,186,949) 2,214,055 6,401,004 Unbudgeted self-insurance activities 144,946 144,946 Fund balances at beginning of year 24,554,099 24,554,099 12,269,184 12,269,184 Fund balances at end of year $10,281,267 $16,729,288 $6.448,021 $8,082,235 $14,483,239 $6,401,004 See accompanying notes to combined financial statements. -28- Totals (Memorandum Only) Variance - Favorable Budeet Actual (Unfavorable) $94,604,610 $95,467,058 $ 862,448 6,828,336 7,411,673 583,337 37,603,676 35,261,738 (2,341,938) 11,342,288 12,056,552 714,264 709,500 343,193 (366,307) 139,200 23,511 (115,689) 5,770,250 6,1:93,510 423,260 2,828,911 3,087,107 258,196 15 9, 826, 771 15 9, 844, 342 17, 5 71 23,822,857 21,043,821 2,779,036 62,718,087 59,131,929 3,586,158 9,837,993 8,423,833 1,414,160 13,603,986 12,600,995 1,002,991 6,033,030 5,759,608 273,422 12,580,593 12,030,325 550,268 4,344,344 3,698,733 645,611 0,860,748 10,683,995 176,753 6,745,607 4,723,964 2,021,643 3,400,148 3,400,148 153,947,393 141,497,3 51 12,450,042 5,879,378 18,346,991 12,467,613 6,831,794 6,029,647 (802,147) (31,170,953) (30,132,340) 1,038,613 (24,339,159) (24,102,693) 236,466 (18,459,781) (5,755,702) 12,704,079 144,946 144,946 36,823,283 36,823,283 $18,363,502 $31,212,527 $12,849,025 -29- COUNTY Off' HAWAII Combined Statement of ~tevenues, Expenses and Changes in laetained Earnings Proprietary Fund T}'pe and Discretel~~ Presented Component Unit For the Fiscal Year Ended June 30. 2001 (With comparative totals for the fiscal year ended June 30, 2000) Proprietan~ Component Fund Type Unit Totals - Department Reporting Entity of Water (Memorandum Only) Enterprise Suap11, 2001 2000 Operating revenues: Water sales $ $22,571,053 $22,571,053 $20,964,517 Rental receipts from tenants 288,589 288,589 282,801 Rental subsidy from federal government -HUD 147,669 ]47,669 148,434 Miscellaneous 6,652 6.652 6,146 Total operating revenues 442,910 22,571,053 23,013,963 21,401,898 Operating expenses: Power and pumping 9,338,913 9,338,913 8,033,305 Utilities 59,270 59,270 58,163 General and administration 139,820 1,964,967 2,104,787 1,866,131 Maintenance and repairs 41,059 1,046,750 1,087,809 1,744,731 Customers',accounting and collecting 1,375,638 1,375,638 1,095,315 Purification 1,401,204 1,401,204 1,449,525 Transmission and distribution 2,268,265 2,268,265 2,285,000 Source of supply 195,632 195,632 39,954 Lease expense 76,226 76,226 76,226 Depreciation 33,747 8,372,471 8,406,218 7.645,906 Total operating expenses 350,122 25.963,840 26.313,962 24,294,256 Operating income (loss) 92.788 (3,392,787) (3.299,999) (2,892,358) Nonoperating revenues (expenses): Contributions in aid of construction (note 16) 9,932,168 9,932,168 Interest income 36,375 1,207,257 1,243,632 1,127,848 Other revenue 436,886 436,886 470,149 Interest on long-term debt (76,727) (597,286) (674,013) (731,125) Other expenses (184,046) (184,046) (175,880) Lass on disposal of fixed assets (271,471) (271,471) (592,244) Total nonoperating revenues (expenses) (40,352) 10,523,508 10,483,156 98,748 Net income (loss) 52,436 7,130,721 7,183,157 (2,793,610) Add depreciation on contributed utility plant 5,440,232 5,440,232 5,314,304 increase in retained earnings 52,436 12,570,953 12,623,389 2,520,694 Retained earnings at beginning of year 378,162 5],031,024 51,409,186 48,888,492 Retained earnings at end of year $430.598 $63,601,977 $64,032,575 $51,409,186 See accompanying notes to combined financial statements. -30- COUNT' OF HAWAII Combined Statement of Cash Flows Proprietary Fund `Type and Discretely Presented Component Unit For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Proprietary Component Fund Type Unit Totals - L>epamnent Reporting Entity of Water (Memorandum Only) Enterprise Suvply 2001 2000 Cash flows from operating activities: Cash received from customers $ $23,334,954 $23,334,954 $20,533,051 Cash received from tenants 290,138 - 290,138 289,806 Cash received from federal gavernment - HUD 147,669 147,669 148,434 Cash payments to suppliers for goods and services (321,597) (12,041,925) (12,363,522) (10,977,903) Cash payments to employees for services (5,217,631) (5.217,631) (5,533,030) Net cash provided by operating activities 116,210 6,075,398 6,191,608 4,460,358 Cash flows from capital and related financing activities: Principal paid on long-term debt (17,185) (926,400) (943,585) (916,172) Proceeds from bond issue 253,250 Interest paid on long-term debt (76,727) (603,620) (680,347) (753,008) Proceeds from sale of fixed assets Acquisition and construction of capital assets (8,033) (9,857,254) (9,865,287) (5,441,328) Capital contributions 4,059,522 4,059.522 2,257,106 Net cash used in capital and related financing activities (101,945) 7,327,752) (7,429,697) (4,600,152) Cash flows from investing activities: Purchase of investments (1,500,000) (56,861,438) (58,361,438) (79,875,076) Proceeds from sale and maturities of investments 1,500,000 67,578,392 69,078,392 78,918,008 Interest on investments 36,337 1,292,211 1,328.548 1,066,644 Net cash provided by investing activities 36,337 12.009,165 12,045,502 109,576 Net increase (decrease) in cash and cash equivalents 50,602 10,756,811 10,807,413 (30,218) Cash and cash equivalents at beginning of year 500,415 305,848 806,263 836,481 Cash and cash equivalents at end of year $551,017 $1 1,062,659 $11,613.676 $ 806,263 (Continued) -3I- COUNTY OF HAWAII Combined Statement of Cash Flovvs Proprietary Feand Type and Discretely Presented Coffiponent Unit For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) (Concluded) Proprietan~ Component Fund Tvpe unit Totals - Depamnent Reporting Entit`~ of Water (Memorandum Onlvl Enterprise Sunnly ?001 2000 Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) $ 92,788 ($3,392,787 ($3,299.999) ($2,892,358) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 33,747 8,372,471 8,406,218 7,645,906 (Increase) decrease in trade accounts receivable, net (6,277) (722,001) (728,278) 52,639 (Increase) decrease in other receivables (305) 832 527 50,623 Increase in inventories (95,728) (95,728) (64,798) (Increase) decrease in prepaid expenses 3 (4,721) (4,718) (3,932) (increase} decrease in loans receivable 10,400 10,400 (244,175) Increase (decrease) in warrants payable 179 (302,164} (301,985) 692,Li2 Increase (decrease) in accounts payable (7,203) 631,614 624,411 (473,363) Increase in due to other funds 1,799 1,799 Increase (decrease) in accrued liabilities 1,577,482 1,577,482 (304,134) Increase in deferred revenue 637 637 1,378 Increase in customer deposits payable 842 842 440 Total adjustments 23,422 9,468,185 9,491,607 7,352,716 Net cash provided by operating activities $116,210 $6,075,398 $6,191,608 $4,460,358 Noncash capital activities: During the fiscal years ended June 30, 2001 and 2000, the Deparement of Water Supply received infrastructure valued at $5,872,646 and $3,240,007, 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, 2001 The accounting policies of the County of Hawaii (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. 1. STJNII~I.AItY OF SIGNIFICANT` ACCOUNTING POLICIES The Financial Reporting Entity The County has implemented Governmental Accounting Standards Board Statement No. 14, 7`6te Fin~cial Reporting Entity, (GASH Statement No. 14). No organizations, activities or functions that meet the criteria in GASH Statement No. 14 for inclusion in the reporting entity are excluded from the County's general purpose financial statements. Frirnary G®vererareent The County operates under the Mayor-Council form of governrraent under a charter that became effective on January 2, 1969, and was amended in 1979, 1982, 1990 and 2000. The County's operations are organized by the following functions: general government; public safety; highways and streets; sanitation; health, education and welfare; culture and recreation; pension and retirement contributions; health fund; miscellaneous; capital outlay; and debt service. The State of Hawaii (State) assumes full responsibility for several major functions usually performed by local governments, including education, welfare, health and judicial functions. There are no separate city, county or township governments nor any school districts, special districts, authorities or public corporations with overlapping authority. GASH Statement No. l4 defines component units as legally separate organizations for which the elected officials of the primary government are fnancially 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 fnancial support to, the organization; or (3) The primary government is obligated in some manner for the debt of the organization. -33- COUNTY OF HAWAII Notes to tlRe Coanbined Financial Statements June 30.2001 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. I)iscretcly Presented C®napcrnent 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, 345 Kekuanaoa Street, Suite 20,1-lilo, l-Iawai`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 ~'ypes -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, 2001 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 crusts 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 Pr®jects 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). Pr®prietary 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 proprietary funds of the County and its discretely presented component unit have elected to apply all applicable Governmental Accounting Standards Board (GASH) 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 GASH pronouncements. The proprietary funds of the County and its discretely presented component unit will not apply FASB Statements and Interpretations issued after November 30, 1989. The following is the County's proprietary fund type: Enterprise Fund -Enterprise funds are used to account for operations (a) that are 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 primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes. -3~- COtTNTY OF HAR'AI'I Notes to tl~e Combined Financial Statements June 30, 2001 Fiduciary Fund Types -Fiduciary funds are used to account for assets held by the Couni<~ 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: gust 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 fianction 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-7`eren 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 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 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. -36- _ . COUNTY OF HAWAII Notes to ~Iae Combined Financial Statements June 30, 2001 In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are essentially two types of these revenues. In one, monies must be expended on the specific purpose or project before any amounts will be paid to the County; therefore, revenues are recognized based upon the expenditures recorded. Most construction grants and many operating grants fall into this category. In the other, moneys are virtually unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met. The County reports deferred revenue on its combined balance sheet (see Note 6). Deferred revenues arise when potential revenue does not meet both the "measurable" and "available" CYIterH$ for recognition in the current period. In subsequent periods, when both revenue recognition criteria are met, the liability for deferred 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. Accrued 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. E®cuanbrances 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 I-IAWAI'I Notes to the Combined Financial Statements June 30, 2001 Unea;Iaended 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. Cas)b 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-earning investment contracts (repurchase agreements) that have remaining maturities 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). heal 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 material 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, 2001. Inventories Inventories consist of materials and supplies and are reported as expenditures at the time of purchase (purchase method). Police and fire department inventories are stated using the first in, first out (FIFO) method. Other inventories are stated at average cost. -38- COUNTY OF HAWAPI Notes to the Conxbined Financial Stateffients June 30, 2001 Liquor Control Section 2$ l of the Hawaii Revised Statutes requires that liquor license revenues collected be used only for costs and expenses directly relating to operational and administrative costs actually incurred by the liquor commission collecting such fees. The unexpended fees at June 30, 2001 of $634,749 are reflected as a reserve of general fund balance (See Note 12). Fixed Assets Fixed assets acquired for general governmental purposes are recorded as expenditures in the fund financing the purchase and are capitalized at cost in the general fixed assets account group. Gifts or contributions of fixed assets are recorded at their estire~ated fair market value on the date contributed. No depreciation has been provided for general fixed assets. Fixed assets consisting of certain improvements (other than buildings), including roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, have not been capitalized. Such assets normally are immovable and of value only to the County; therefore, the purpose of stewardship for capital expenditures is satisfied without recording these assets. Bepreciation is recorded in one enterprise fund, the Kulaimano Elderly Housing Project. It is computed using the straight-line method over the estimated useful lives of the assets: buildings 50 years Furnishings and equipment 5 to 10 years Ground and site improvements 20 to 50 years Long-terraa Obligations The County reports long-term debt of governmental funds at face value in the general long- term debt account group. Certain other governmental fund obligations not expected to be financed with current available resources are also reported in the general long-term debt account group. Long-term debt and other obligations financed by the enterprise funds are reported as liabilities in the funds. -39- . COUNTY OF HAVI'AI'I Notes to the Combined Financial Stateffients June 30, 2001 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, 2001 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, 2001 totaled $43,605,910 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. l+,etirement Plan Contributions The County's contribution to the Employees' Retirement System of the State of 1-lawai`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 period of sixteen years from July 1, 2000. In addition, for the 1998 and 1999 actuarial valuations, contributions for fiscal years 2001 and 2002 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. -40- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2001 Nonexchange Transactions Effective July 1, 2000, the County adopted GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions, (GASB Statement No. 33), which requires the County to record real property tax revenue in the year it is levied. The statement also requires the County to record grant revenue and receivables only when all eligibility requirements have been met. There was no effect on the combined financial statements. 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 1aabilities 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 position or results of operations of the County taken as a whole. Additionally, the 2000 totals presented in the total columns are intended to provide a summarized comparison with comparable 2001 amounts and are not intended to present all information necessary for a fair presentation of financial position and results of operations in accordance with generally accepted accounting principles. Certain 2000 amounts have been reclassified to conform to classifications adopted in 2001. 2. STEVVA1tDS1EIIP, 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 1. The operating budget includes proposed expenditures for the general fund, special revenue funds, and one expendable trust fund (the Hawaii County Housing Agency), and the -41- COUNTY OF HAR'AI'I Notes to the Combined Financial Statements June 30, 2001 means of financing them. Aproject-length budget is submitted to the County Council for the capital projects fund. • The Mayor submits to the County Council amendments to the proposed operating and capital budgets within ten working days after the close of the state legislature, but not later than May 5. • The County Council conducts public hearings on the proposed operating and capital budgets after March 1 but prior to the first reading on the budget bills, which must be after May 5. • On or before June 30, the County Council adopts the budgets. The legal level of budgetary control is the department level because the Mayor can transfer funds from any unencumbered appropriation to another within a department or agency without 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 2000-2001 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 $8.7 million in the general fund and $2.7 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 far 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 b}' the granting agency, encumbrances and unexpended allotments are treated as expenditures, accounts payable are not accrued, and all leases are treated as operating leases. In preparing the combined financial statements on a - 4? - COUNTY OF HAWAII Notes to tlae Coanbined Financeal Stateffients June 30, 2001 GAAP basis, accounts payable are accrued and treated as a reduction of encumbrances for balance sheet presentation. ]Budget to GAAP lteeoncetaation The following is a summary of the adjustments necessary to convert fund balances from a GAAP basis to a budgetary basis at June 30, 2001: General Special Revenue Fund Funds Ending fund balance - GAAP basis $14,814,833 $13,878,960 Encumbrance adjustments: Beginning encumbrances and unexpended allotments 5,574,668 3,460,740 Ending encumbrances and unexpended allotPraents (3,668,382) (2,827,889) Ending accounts payable in excess of the reserve for encumbrances - (28,572) Decrease in reserve for inventory of materials and supplies 8,594 Increase in imprest and change fiends (425) Ending fund balance -Non-GAAP budgetary basis $.1:6,729;288 $14,483.;239 3. CASH AND INVESTI~ZENTS Bank time certificates of deposit (TCDs) and repurchase agreements (repos) with original maturities of three months or !ess are considered cash and cash equivalents for purposes of balance sheet classification and the combined statement of cash flows, while TCDs and repos with original maturities exceeding three months are considered investments. However, for purposes of the disclosures required by GASB Statement No. 3, Deposits oaith F`inancdal Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, (GASB Statement No. 3) all bank TCDs are considered deposits and all repos are considered investments. Cash and cash equivalents of $29,845,894 and investments of $65,517,582 are included in the accompanying combined balance sheet at June 30, 2001. The following table summarizes 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 HAVVAI'I Notes to the Combined Financial Statements June 30, 2001 GASB Statement No. 3 Balance sheeet caption: Total Deaosits Investments Cash and cash equivalents $27,532,348 $6,082,348 521,450.000 Restricted assets: Cash and cash equivalents 2,284,776 884,776 1,400,000 Imprest and change funds 28,770 Total cash and cash equivalents 29845,894 Investments 65,412,582 11,626.865 53.785.717 Restricted assets: Investments 105.000 105.000 Total investments 65.517.582 Total cash, cash equivalents and investments 95,363,476 Less imprest and change funds (28.770) Classifications per GASB Statement No. 3 595.334,70b $1.$$698,989 $.26.635.717 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, 2001: General fund -actual $12,386,879 Payroll clearance fund -overdraft (1a567~ 188) General fund - as reported 10,819,691 Special revenue funds 16,815,870 Capital projects funds 37,039,952 Trust and agency funds 591,104 Total pooled cash and investments ._$65.266.617 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. Dep®sats At June 30, 2001, the carrying amount of the County's deposits was $18,698,988 (including $989,776 reported in restricted assets) and the bank balance was $19,583,616. Of the bank balance, $800,000 was covered by federal depository insurance; $17,133,898 was covered by collateral held by the County's agent in the County's name and $1,448,696 was secured by irrevocable letters of credit issued by the Federal Dome Loan Bank of Seattle, in accordance with State statutes; and $178,654 held by bond paying agents and $22,368 held by a management agent were uncollateralized. -44- COUNTY OF HAWAII Notes to the Coffibined Financial Stateffients June 30, 2001 Investments The Hawaii Revised Statutes authorize the County to invest in obligations of the U.S. fireasury, agencies and instrumentalities, time certificates of deposit, bank repurchase agreements and bonds of any improvement district of any county of the State, provided the investments are due to mature not more than three veers from the date of investment. Investments are classified into three categories of credit risk: (1) insured or registered, or securities 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, 2001, investments reported as $76,635,717 (which approximates fair value) held for the County at banks were classified as category 1. These investments are comprised of bank repurchase agreements. A repurchase agreement is an agreement in which a governmental entity transfers cash to abroker-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 securities. Restricted Cash and Cash Equivalents and Investments Cash and cash equivalents and investments classified as restricted assets amounted to $2,389,776 at June 30, 2001 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 $1,410 at June 30, 2001. The Army Corps of Engineers is authorized to draw on these funds as needed during the course of the construction project. 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, 2001 was $769,556. Tenant security 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 $19,366, respectively, at June 30, 2001. - 45 - COUNTY OF HAWAII Notes to tl~e Coffibined Financial Stateynents June 30, 2001 Restricted amounts set aside by the Kulaimano Elderly Housing Project under its loan agreement with the Farmers Home Administration totaled $176,019 at June 30, 2001. This amount is restricted for debt service, or for other purposes with prior approval from the Fanners 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 $14,175 at June 30, 2001. The Improvement District No. 17 Fund has restricted $1,400,000 as a bond reserve at June 30, 2001 to comply with the requirements of its Kaloko Subdivision bond issuance. 4. IN1`E1E~iJND ItECEIVAJI3LES AND PAYAl13LES Interfund receivables and payables consist of the following at June 30, 2001: Due from Due to Other Funds Other Funds General fund 4 282 904 3 150 129 Special revenue funds: Highway fund 133,435 502,666 Sewer fund 21,816 156,940 Vehicle disposal fund 3,635 Solid waste fund 8,225 211,461 Golf course fund 47,664 Workforce Investment Act fund 69795 Total special revenue funds 163,476 992x161 Capital projects funds: Capital projects fund 25,295 2,198,715 Enterprise funds: Kulaimano elderly housing project 11799 Trust and agency funds: Hawaii County Housing agency 69,795 114,816 Performance and refundable deposits fund 350 Payroll clearance fund 3,475,420 1,568,332 Lapsed warrants fund 9,412 Total trust and agency funds 31554627 1,683498 Total $$~026~302 $A 026.30 -46- COUNTY OF HAWAII Notes to the Coanbined Financial Statements June 30, 2001 5. FIXED ASSETS A summary of changes in the general fixed assets account group follows: Balance Balance Juiy 1, June 30, 2000 Additions Retvements 2001 Land $ 16,534,898 $ 2,333,501 $ 27,000 $ 18,841,399 Buildings and structures 224,950,257 10,888,675 576,881 235,262,051 Machinery and equipment 53,698,533 6,072,969 3,983,686 55,787,816 Construction in progress 21.201,546 28,298,251 6.284,902 43,214,895 T®tal $316 385 234 $47.593.396 $~Q,~~ $353.1®6.161 The above summary includes fixed assets of the Hawai` i County Housing Agency, an expendable trust fund, in the amount of $4,805,158. The following summarizes the enterprise funds' fixed assets at June 30, 2001: Land $ 753,877 Buildings 1,136,008 Ground and site improvements 261,000 Furnishings and equipment 90,045 Less: accumulated depreciation (761,5811 Net fixed assets 4 . 4___ -47- COUNTY OF HAWAII Notes to the CoYnbined Financial Stategnents June 30, 2001 6. DEFERRED REVENUE Deferred revenue at June 30, 2001 consists of the following: Special Capital General Revenue Projects Enterprise Fund Funds Funds Funds Total Real property taxes $10,159,517 $ $ $ $ l 0,159,5 l 7 Liquor control revenue 172,115 - 172.115 Sewer revenue 921,179 921,179 Solid waste revenue 745,693 745,693 Intergovernmental 1,135,191 437,928 1,156,312 - 2,729,431 Unearned rental income - 2,418 2,418 Total ~ l 1..466.823 ~ 104800 $1 ~ ~~2 $Z.,,~-$ X14 730 353 7. LEASES The County leases machinery and equipment under noncancellable leases expiring at various dates through November 2009 which meet the criteria for capitalization. These capital leases are financed from general fund resources. The estimated value of the leased machinery and equipment at the inception of the capital leases, amounting to $3,169,158, and the related present value of the remaining obligations under the capital leases amounting to $2,399,868 at June 30, 2001 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 expiring through July 2020. Expenditures for such operating leases were $402,589 for the fiscal year ended June 30, 2001. - 48 - COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2001 The future minimum obligations under capital and operating leases at June 30, 200 ] are as follows: Capital Operating Leases Leases Year Ending June 30: 2002 $651,534 $312,768 2003 649,809 11,235 2004 642,789 361 2005 487,378 361 2006 112,116 361 Thereafter 204 271 5,047 Total minimum lease payments 2,747,897 X330.133 Less amount representing interest 34~ 8.029 Obligations under capital leases $~399~g6g 8. SOLID WASTE LANDFILL CLOSiJIZE AND POSTCLOSURE CARE COSTS d~iil® 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 after the date that the landfill stops accepting waste, the County recognizes a portion of the closure and postclosure care costs in each operating period. The liability for these costs is included in the general long-term debt account group. The amount recognized each year is based on the landfill capacity used as of the balance sheet date. At June 30, 2001, the County recognized a liability of $12;882,000, based on the use of 93% of the estimated capacity of the landf 11. During the fiscal year ended June 30, 2001, $41,000 was spent on closure of the landfill. The remaining $950,366 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 2001. 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, ] 998. 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 provided 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. -49- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2001 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 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 2001. Actual costs may be higher due to inflation, changes in technology, or changes in regulations. Through June 30, 2001, $6,242,000 was spent on closure and postclosure care of the landfill. The remaining estimated liability of $9,008,000 is included in the general long-term debt account group. During-the year ended June 30, 2001, a total of $44,003 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. Fu'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. Fiinancdal Assurance For fiscal year 2001, 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. L0101G-'I'EItI!'I DE)13T General Obligation li®nds 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). -50- COUNTY OF HAWAII Notes to the Combined Financial StateYnents June 30, 2001 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, 2001: Bonds payable at July 1, 2000 $137,606,000 Bonds retired (,7,093,500) Bonds payable at June 30, 2001 $1,30.512.500 General obligation bonds payable reported in the general long-term debt account group at June 30, 2001 are comprised of the following individual issues: Public improvement and/or refunding bonds: 1977 Series A at 5.0%, due through 2012 $ 259,000 1989 Refunding at 6.8% to 6.95%, due through 2004 900,000 1993 Refunding ~ PI at 5.05% to 5.6%, due through 2013 54,045,000 1996 Series A at 4.5% to 5.2%, due through 2016 26,600,000 1996 Series B at 4.5%, due through 2016 650,500 1997 Series A at 4.875%, due through 2017 3,473,000 1999 Series A at 4.375% to 6.0%, due through 2019 30,000,000 1999 Refunding at 4.375% to 4.875%, due through 2007 14,585 000 Total general government $130.51.2.500 Annual debt service requirements to maturity for the above general obligation bonds, including interest payments of $56,167,828, are as follows: Fiscal year ending June 30: 2002 $ 14,229,544 2003 15,322,197 2004 14,848,491 2005 14,850,760 2006 14,866,262 Thereafter 112,563,074 Total $1$6,~~Q~~ 113®nds Authorised 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 Agriculture under its Federal Consolidated Farm and Rural Development Act loan program. At June 30, 2001, these authorized bonds were unissued. -51- _ _ _ COUNTY OF HAWAII Notes to the Combined Financial Statetnents June 30, 2001 The County Council has also authorized the issuance of $8 million in general obligation bonds to finance a radio communication system to be used by agencies of the County; $7 million in general obligation bonds to finance capital improvement projects; and $8 million in general obligation bonds to finance water system projects for the component unit. At June 30, 2001, these authorized bonds were unissued. Subsegasent ~veatts On July 25, 2001, the County issued $23 million in general obligation bonds (2001 Series A). The interest rates on the 2001 Series A range from 4.00% to 5.50%. On August 6, 2001, the County issued $1.8 million in general obligation bonds (2001 Series A Public Improvement). The interest rate on the 2001 Series A Public Improvement is 4.875%. State 1ltedo6ving Fund IJoans 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, 2001: Loans Approved Loan Balance Loan Balance Authorized Amount Julv 1, 2000 Additions Retirements June 30. 200] Hilo WWTP $12,724,311 $ 9,072,435 $ ($599,219) $ 8,473,216 Waiakea Mill 1,300,000 982,664 (59,487) 923,177 Waiakea Hslts 459,321 328,832 (21,719) 307,113 Waiakea Hslts II 5,024,266 3,656,080 888,281 (136,299) 4,408,062 Ainako AFB 2,374,000 1,723,666 (102,126) 1,621,540 Kalanianaole 1,499,944 1,276,025 (65,734) 1,210,29] Alii Drive AFB 3,210,243 2,260,024 (134,246) 2,125,778 Alii Drive C&D 3,780,000 3,125,125 (173,128) 2,951,997 Alii Drive E&F 2,300,000 1,644,366 230,401 (81,546) 1,793,221 Waiaha Bay 3,697,893 3,089,704 (161,959) 2,927,745 Kealakehe 1,300,071 980,874 (59,378) 921,496 Holualoa Bay 3,080,000 2,746,987 (130,630) 2,616,357 Paukaa CCS 2,143,448 1,894,693 190,265 (84,371) 2,000,587 Pahoehoe 2,940,750 ~l 13,448 2,] 13,448 $45,.;334,247 78.1 475 4?'? 8~,Qr8421 $34,394 02.$ -~2- COUNTY OF HAWAII Notes to tlae Combined Financial Statements June 30, 2001 The loans bear interest at 2.06% to 3.02%, exclusive of a 1.00% loan fee, and require payments through fiscal year 2021. Debt service to maturity, including interest and loan fees of $10,755,629, is given below for the disbursements to date on these projects. Fiscal year ending June 30: 2002 $ 3,089,394 2003 3,172,179 2004 3,168,376 2005 3,164,478 2006 3,160,477 Thereafter 29,394,753 Total $4$ .14Q~. 5~~7 Other Cseneral Long-terYn Debt The following is a summary of other general long-term debt transactions for the fiscal year ended June 30, 2001: Balance Deductions Balance July 1, 2000 Additions &~Pa +ments June 30.2001 Compensated absences $18,687,530 $ ($1,371,258) $17,316,272 Claims and judgments (see-Note 14) 11,930,674 6,541,161 (3,891,404) 14,580,426 Capital lease obligations (see Note 7) 2,872,678 22,953 (495,763) 2,399,868 Landfill closure costs (see Note 8) 22,262.000 (372,000) 21,890,000 Total $5_~7~~~882 ~ 4.._...4 x$6.130,430] ~_....56j1.g6"~C~4 Fund balances -Debt Service Funds The fund balance in the debt service funds at June 30, 2001 includes $10,470,807 which is available for principal payments on general obligation bonds and $232,652 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." Enterlrrise 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 $1,117,954 at June 30, 2001. 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 -53- COUNTY OF HAVI'AI'I Notes to fhe Combined Financial Statements June 30, 2001 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 $l4 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%. Total special assessment bonds payable were $10,760,000 at June 30, 2001. 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 appropriate 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 District No. 17, Kaloko Subdivision, for the fiscal year ended June 30, 2001: Balance at July 1, 2000 $11,305,000 Deductions - mariirities X545,000) Balance at June 30, 2001 $IOt760.000 The following is a summary of the annual maturities including interest of $6,534,575 for special assessment bonds: Year ending June 30: 2002 1,588,938 2003 1,589,563 2004 1,584,488 200 1,583,238 2006 1,575,338 Thereafter 9,,373,010 Total $17 ..2,.._94575 -54- COUNTY OF HAWAII Notes to the Coanbined Financial Statements June 30, 2001 10. CONTRIPUTED CAPITAL Contributed capital of $411,296 at June 30, 2001 in the Kulaimano Elderly Housing Project represents contributions from private and government sources at the inception ofthe-project. Contributed capital of $544,367 in the Ouli Ekahi Affordable Housing Project at June 30, 2001 represents contributions received from developers. There were no changes in contributed capital in either fund during the year. 11. SEGMENT INFORMATION - ENTEItPItISE FU1~S The County maintains two enterprise funds. The Kulaimano Elderly Housing Project (KEl°IP) provides low-income rental housing for senior citizens. The Ouli Ekahi Affordable Housing Project (OEAt-iP) provides affordable single-family rental housing to qualifying tenants. Selected segment information for the fiscal year ended June 30, 2001 is as follows: KEHP OEAHP Total Operating revenues $ 227,800 $215,110 $ 442,910 Depreciation 33,747 33,747 Operating income 77,603 15,185 92,788 Net income 36,787 15,649 52,436 Net working capital 781,820 34,436 816,256 Fixed assets, net 975,472 503,877 1,479,349 Total assets 1,976,487 581,536 2,558,023 Long-term notes payable 1,117,954 1,117,954 Total equity 832,491 553,770 1,386,261 -55- COUNTY OF I-IAWAI'I Notes to the Combined Financial Statements June 30, 2001 12. FUND EQUITY Designated Fund 1Balance 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, 2001 consist of the following: General fund: Imprest and change funds $ 26,120 Drug enforcement 32,354 Special duty police program 370,389 Future year expenditures 5,458,146 Claims and judgments 2,423,680 Total general fund $ 8,310,689 Special revenue funds: Equipment replacement 3,125,869 Imprest fund 2,400 Future year expenditures 3,238,119 Future project 1,000 Total special revenue funds 6,367,388 Capital projects funds: Road repairs 3,077,370 Development impact 1,694,205 SRF (wastewater) projects 6311857 fiotal capital projects funds 5,403,432 Trust and agency funds: Imprest fund 100 Affordable housing 33,830 Future year expenditures 279,068 Total trust and agency funds _ 312,998 Total designated fund balance $t0.394~07 -56- COUNTY OF I-IAWAI'I Notes to the Co>;nbined Financial State><nents June 30, 2001 Reserved Fund Illalance 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, 2001 are composed of the following: Special Debt Capital Trust and General Revenue Service Projects Agency Fund Funds Funds, Funds Funds Total Reserved for: Encumbrances $3,668,382 $2,827,889 $ $18,503,844 $4,141,338 $29,141,453 Unexpended allotments 8,774,505 8,774,505 Road repairs 366,494 366,494 Inventories 2,152,663 2,152,663 Debt service - 10,703.459 10,703,459 Taxi invest. 48,350 48,350 Liquor control 634 749 - 634,749 Total reserved fiand balance 53,1.94383 $10 _03 459 527.278.349 $4.141.3•'x$ 5~~.~,~.?3 ~...504s 144 ....t--- Retaaned Earnings At June 30, 2001, the Kulaimano Elderly Housing Project reported retained earnings reserved for debt service in the amount of $176,019 and unreserved retained earnings of $245,176. The Ouli Ekahi Affordable Housing Project reported retained earrings of $9,403 at June 30, 2001. 13. COIVIIVIITIVIENTS AND CONTINGENCIES Contractual corn~rait~raents @ Contractual commitments for capital projects, expenses, and supplies at June 30, 2001, 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. Intergovernnrentad 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, if any, would not be material. -57- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2001 Claiorrs _ 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. 11~araa~ed process jor public competition _ The 1998 session of the state legislature passed a bill mandating that a multi jurisdictional 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. The County is currently awaiting implementation guidance from the State. 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 entered into two stipulated agreements approved by the federal court to implement provisions of the Americans with Disabilities Act. With respect to 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 commitment, was approved by the County Council. The total cost of all curb cuts was estimated to be $6.2 million. The cost of the first phase of the plan was $3 million, to 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 was to be completed by the year 2005, ~~ith an estimated 308 intersections to be modified. Funding allocated so far for this effort is $2 million. The parties to the agreement are currently in negotiation to modify the agreement, because the proposed timetable has proven to be too ambitious. Similar negotiations are taking place with all four counties in the State. 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 accepted by the County -58- COUNTY OF HAWAII Notes to tlae Cognbined Financial StateQnents June 30, 2001 Council on June 30, 2000. Approximately 240 County facilities were surveyed 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 original estimated cost of the facilities repairs was $14.8 million, which will be spent over the 10 year period. Funding allocated so far for facilities repairs is $2 million, with $4 million of federal fundang anticipated through community development block grants over the next 5 years. 14. IZISI~ MANAGEIl~dEN'I' The County is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. 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 perils 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 (If3NR). Claim liabilities, including IBNR, are based on the estimated ultimate cost of settling the claims, and include incremental costs for the hiring of special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case review of all claims and the application of historical experience to outstanding claims. Estimates of IBNR are based on historical experience. The liability for claims and judgments is reported in the general long-term debt account group because it is not expected to be liquidated with expendable financial resources. At June 30, 2001, the amount of this liability was $14,580,426. This is the County's best estimate based on available information. Changes in the reported liability since July 1, 1999 are given below. -59- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2001 General Workers' Total Liability Com~nsation Liabilih~ Balance at July 1, 1999 $3,772,958 $6,115,570 $9.888,528 Incurred claims (including IBNR)* 3,302,720 3,797,689 7,100,409 Claim payments 2 4~ , 02,830) ~~655,433) (5_058,263) Balance at June 30, 2000 4,672,848 7,257,826 11,930,674 Incurred claims (including IBNR)* 2,910,380 3,630,781 6,541,161 Claim payments 1 0~ , 93,069) 2,7( 98,340) (3891,409) Balance at June 30, 2001 ~~,,490t159 ~g.090"267"267 . $14.5$0.4 _ f *Net of new claims liability and old claims resolved at less than previous estimate. 15. E1ViPLOYEE )l1ENEFIT PLANS Pensi®n Plan flan rlescriptl®n All full-time employees of the County participate in the Employees' Retirement System of the State of Hawaii (System), acost-sharing multiple-employer defined benefit pension plan. The System was established by Chapter 88 of the Hawaii 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, 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'/z % 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 -60- COUNTY OF HAWAII Notes to the Combined Financial Statements June 30, 2001 retirement at age 62 with 10 years of credited service or at age 55 with 30 vears 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 ?5% 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 Hawaii, 201 Merchant Street, Suite 1400, Honolulu, Hawaii 968]3. Faera~fing 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 contributions to the System for the fiscal years ended June 30, 1999, 2000 and 2001 were $6,440,200, $2,105,000, and $129,000 respectively, equal to the required contributions for each year. Post-~etireanent Benefits In addition to providing the pension benefits described above, the County is required by state statute to contribute to the Hawaii 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 premiun-;s of the medical, adult dental, prescription drug, vision, and group life insurance plans elected by 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 1, 1996 or after, 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. Current]}', the County has 1,013 former employees who have retired with at least ten years of credited service and are receiving the full benefit. An additional three 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 -61 - COUNTY OF HAWAII Notes to the Combined Financial Stateffients June 30, 2001 fiscal year ended June 30, 2001, the County's contribution to the Health Fund for retired employees totaled $5.2 million. Deferred C®Bnpensati®n Plaa~ 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 GASl3 Statement No. 32, Acc®unting arad Financial Reporting for Internal Revenue Code Section 457 Deferred C®rnperasatiort Plarrs, deferred compensation plan assets are not reported in the accompanying combined financial statements. 16. CO10'II'ONENT' UNIT DISCLOSURES Cash and Investments For purposes of the combined statement of cash flows, the Deparnnent of Water Supply (the Department) considers all highly liquid investments with original maturities of three months or less to be cash equivalents. However, for the required GASH Statement No. 3 disclosures, all bank TCDs are considered deposits. The amount of $I 1,049,826 shown on the combined balance sheet as cash and cash equivalents consists of cash on hand (deposit in transit) of $33,957, the balance in the checking account of $215,869, time certificates of deposits of $2,500,000 and repurchase agreements of $8,300,000. I)ep®~ats and Investmnents At June 30, 2001, the carrying amount of the Department's deposits was $18,336,855 and the bank balance was $18,332,540. The entire bank balance was covered by collateral held by the County's agent in the County's name in accordance with state statutes. At June 30, 2001, repurchase agreements of $8,300,000 (which approximates fair value) held for the Departrent by the County at banks were insured or registered, or were collateralized by securities held by the County or its agent in the County's name. The deposits and investments include cash received by the Department that is refundable or restricted as to use, and is recorded as a restricted asset. Such funds amounted to $9,747,301 at June 30, 2001. -62- COUNTY OF I-IAWAI'I Notes to the Combined Financial Statements June 30, 2001 L.oans'Reeeivable At June 30, 2001 loans receivable from various community associations for water system improvements were as follows: I'aauilo Camp Community Association $314,400 laaauhau Village Community Association 321,552 Ookala Community Association 109,848 Total $745.800 iF°ixed 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. The fixed assets of the Department at June 30, 2001 were as follows: Utility plant in service $224,784,760 Less: accumulated depreciation (Y7,,895,202) 136,889,558 Construction in progress 16,840,592 Net fixed assets $15330.,1.50 - 63 - COUNTY OF HAWAII Notes to the Coffibined Financial Stateffients June 30, 2001 Long-tergn I2ebt 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 $10,722,800 at June 30, 2001. General obligation bonds payable issued on behalf of the Department at June 30, 2001 are comprised of the following individual issues: Public improvement bonds: 1981 Series A at 5.0%, due through 2016 $ 482,000 1993 Series A at 5.05% to 5.6%, due through 2013 7,595,000 1998 Series A at 4.5%, due through 2033 745,800 Total public improvement bonds 8,822,800 Public improvement refunding bonds: 1989 Series at 6.8% to 6.95%, due through 2004 1,900,000 Total $1.0.722.800 Annual debt service requirements to maturity for these general obligation bonds, including interest payments of $4,144,694, are as follows: Fiscal year ending June 30: 2002 $ 1,536,998 2003 1,504,664 2004 1,527,730 2005 1,490,779 2006 969,260 Thereafter 7,838,063 Total $.14,867 494 -64- COUNTY OF HAWAII Notes to the Combined )Financial Statements June 30, 2001 Contributed Capital The following is a summary of contributed capital of the Department for the fiscal year ended June 30, 2001: Balance Balance July 1, June 30, 2000 Additions 2001 Contributed by County ofl-Iawai`i ~ 1,132.683 $ ~ 1,132,683 Contributions in aid of construction: Federal government 5,953,287 5,953,287 State of Hawaii 52,246,865 52,246,865 County ofHawai`i 8,331,584 8,331,584 Non-government 102,724,789 102 724,789 Total contributions in aid of c®nstruction 169,256,525 - 169,256,525 Less: accumulated depreciation X64,144,724) (5,440,232) X69,584,956,1 Net contributions in aid of construction 105,111,801 (5,440.232) 99,671,569 Contributed capital $~06 244.484 5 44 2321 L~ 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. Contributions in Aid of Construction Effective July 1, 2000, the Department adopted GASB Statement No. 33, which requires the Department to recognize contributions in aid of construction as nonoperating revenues. Contributions in aid of constnaction were previously recognized as contributed capital. The Departrnent recognized $9,932,168 of contributions in aid of construction as nonoperating revenues for the the fiscal year ended June 30, 2001. .State oJ'l~daevai `d Appropraatiorrs -State appropriations for capital improvement projects are recorded as contributions in aid of construction as allotments are received. p'acdddties Charges - In addition to an installation charge, a facilities charge is levied on certain new service connections. Such facilities charges are recorded as contributions in aid of construction. -65- COUNTY OF I-IAWAI'I Notes to the Cognbined Financial Staten?ents June 30, 2001 CoYnYnitments and Contingent Liabilities Claims and judgments - The Department is self-insured for workers' compensation and other perils. The liability at June 30, 200] for workers' compensation claims of $230,000 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 $8,336,000 at June 30, 2001. -66- G~1~~L. FUND °I`he General Fund accounts for ~1 fitaancial resources except those required to be accounted for. in another fund. _ COUNTY OF HAWAII General Fund Comparative Balance Sheets June 30. 2001 and 2000 2001 2000 Assets Cash and investments: Cash and cash equivalents $2,117,678 $4.062,240 Investments 11,125,693 18,930,747 Imprest and change funds 26,120 25,695 Total cash and investments 13,269,491 23.018,682 Receivables: Real property taxes: Delinquent 9,933,733 10,193,108 Tax sale expenditures 5,200 Litigated claims 25,784 284 Total real property taxes 9,964.717 10,193,392 Due from other governments Due from State of Iia~~aii 1,494,451 1,460,601 Due from federal government 2,250,288 1,552,704 Total due from other governments 3.744,739 3,013,305 Due from other funds 4,282,904 2,039,152 Other 244.97b 1,301.158 Total receivables 18237,336 16,547,007 Inventories 2,152,663 2,161,257 Restricted assets: Cash and cash equivalents 664,556 1,089.228 Investments 105,000 715,135 Total restricted assets 769.556 1.804,363 Total assets $34,429,046 $43,531,309 (Continued} -67- COUNTY CAF HAWAII (Concluded} General Fund Comparative Balance Sheets June 30, 2001 and 2000 2001 2000 Liabilities and Fund Balance Liabilities: Warrants payable $ 2,401,037 $ 2,106,811 Accounts payable 1,790,912 979,708 Due to other funds 3,150,129 3,162,429 Due to federal government -arbitrage rebate 229,253 358,074 Deferred revenue: Real property taxes 10,159,517 10,547,484 Liquor control revenue 172,115 156,210 Intergovernmental 1,135,191 968,202 Total deferred revenue 11,466,823 11.671,896 Other 576,059 698,292 Total liabilities 19,614,213 18,977,210 Fund balance: Reserved for: Encumbrances 3,668,382 5,574,668 Inventories 2,152,663 2,161,257 Taxicab investigations 48,350 40,410 Grants 6,227 Liquor control 634,749 670,552 fiotal reserved fund balance 6,504,144 8,453,114 Unresen~ed: Designated for: Imprest and change funds 26,120 25,695 Drug enforcement 32,354 32,354 Special duty police program 370,389 321,731 Future year expenditures 5,458,146 13,392,880 Claims and judgments 2.423,680 20278,734 Total designated fund balance 8,310,689 16,051,394 Undesignated 49,591 Total fund balance 14,814,833 24,554,099 Total liabilities and fund balance $34,429,046 $43;531,309 See accompan}7ng independent auditors' report. -68- COUNTY OF HAWAII General Fund Comparative Statements of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Years Ended June 30, 2001 and 2000 X001 2000 Revenues: Taxes and assessments $84,240,154 $83,270,529 Licenses and permits 3,802,230 3,813,132 Intergovernmental 3 5,183,223 32,152,183 Charges for current services 2,718,060 2,426,864 Fines and forfeitures 343,193 401,781 Rents 23,511 120,744 Interest and penalties 6,408,553 4,922,950 Miscellaneous 1,014,506 989,225 Total revenues 133,733,430 128,097,408 Expenditures: Current: General govetnrrtent 22,071,389 21,432,976 Public safety 56,713,030 55,784,371 FIighways and streets 3,076,391 1,518,667 Sanitation 1,053 I-Iealth, education and welfare 4,861,737 5,076,128 Culture and recreation 11,325,626 10,736,652 Pension and retirement contributions 3,051,978 5,036,367 I-Iealth fund 9,784,824 8,646,361 Miscellaneous 2,949,546 3,177,419 Capital outlay 3,792,304 2,748,158 Debt service: Interest and finance charges l 56,508 64,789 Principal retirement 495,763 173,494 Total expenditures l 18,280,149 ] 14,395,382 Excess of revenues over expenditures 15,453,281 13,702,026 Other financing sources (uses): Sale of general fixed assets 16,438 28,387 Increase in capital leases 22,953 2,676,995 Operating transfers in 135,868 494,431 Operating transfers out (25,359,212) (22,632,046) Total other financing uses (25,183,953) (19,432,233) Deficiency of revenues and other sources over expenditures and other uses (9,730,672) (5,730,207) Fund balance at beginning of year 24,554,099 21,560,805 Residual equity transfer in 8,702,013 Increase (decrease) in reserve for inventories (8,594) 2],488 Fund balance at end of year $14,814,833 $24,554,099 See accompanying independent auditors' report. -69- 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, 2001 Variance Favorable Budeet Actual Unfavorable) Revenues: Taxes and assessments -real property taxes $84,508,500 $84,240,154 $(268.346) Licenses and permits: Nonbusiness licenses and permits 2,352,605 2,762,959 410,354 Business licenses 979,231 731,168 (248,063) Street use 294,000 308,104 14,104 Total licenses and permits 3,625,836 3,802,231 176,395 Intergovernmental: Federal: Programs for the aged 1,319,639 1,260,118 (59,521) Community development block grants 2,298,000 2,298,000 Civil defense 110,226 115,809 5,583 Law enforcement 1,629,530 988,477 (641,053) Other 2,688,983 2,687,593 (1,390) Total federal 8,046,378 7.349,997 (696,381) State: State General Fund -Act 185, SLH 1990 15,694,000 15,032,356 (661,644) Emergency medical services 7,942,033 7,270,667 (671,366) Other 3,659,968 3, 186,697 (473,271) Child support enforcement 975,939 874,002 (101,937) Total State 28,271,940 26,363,722 (1,908,218) Total intergovernmental revenue 36,318,318 33,713,719 (2,604,599) Charges for current services: General government 1,3 ] 7,763 1,633,066 315,303 Culture and recreation 525,800 528,805 3,005 Highways and streets 523,000 533,374 10,374 Public safety 19,000 22,815 3,815 Total charges for current services 2,385,563 2,718,060 332,497 Fines and forfeitures 709,500 343,193 (366,307) Rents 139,200 23,511 (115,689) (Continued) -70- COUNTY OF I-IAWAII Genepal Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actua] (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable Budget Actual (Unfavorable) Revenues (continued): Interest and penalties 5,770,250 6,193,510 423,260 Miscellaneous 2,638,254 2,614,312 (23,942) Total revenues 136,095,421 133,648,690 (2,446,731) Expenditures: Current: General government: Finance 5,910,526 5,288,314 622,212 Automotive equipment 1,798,812 1,764,246 34,566 General government building 2,225,608 1,984,388 241,220 Legislative 2,689,351 2,125,444 563,907 La~v 3,026,405 2,658,128 368,277 Planning and zoning 1,713,255 1,522,033 191,222 Research and development 1,236,846 1,042,004 194,842 Mayor's office 1,120,360 941,296 179,064 Engineering 988,223 981,604 6,619 Personnel services 926,775 800,081 126,694 Chief engineer 666,552 615,598 50,954 Data Systems 820,337 695,115 125,222 Elections 549,807 475,570 74,237 Total general government 23,672,857 20,893,821 2,779,036 Public safety: Police department 31,226,515 29,842,609 1,383,906 Fire department 18,624,378 18,009,197 615,181 Prosecuting attorney 5,233,365 4,530,070 703,295 Protective inspection 1,541,846 1,479,695 62,151 Liquor control 1,129,131 908,960 220,171 Flood control 333,765 311,578 22,187 Civil defense agency 598,473 574,039 24,434 I-Iumane Society 650,000 650,000 n- Industrial safety 162,102 ] 62, l 02 Total public safety 59,499,575 56,468,250 3,031,325 I-Iighways and streets: Mass transit 1,783,448 1,774,771 8,677 (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, 2001 Variance Favorable Budget Actual Unfavorable) Expenditures (continued): Current (continued): Sanfltatflon: Environmental management 48,540 477 48,063 I-lealth, education and welfare: Office of Aging 1,573,414 1,501,096 72,318 Elderly Activities 2,641,315 2,483,012 158,303 Education 55,000 41,310 13,690 Social programs 900,000 898,500 1,500 Cemeteries 232,416 222,476 9,940 Physical examination 101,286 92,142 9,144 Total health, education and welfare 5,503,431 5,238,536 264,895 Culture and recreation: Community music 167,851 159,223 8,628 Organized recreation: IO~laintenance 4,731,038 4,673,705 57,333 Recreation 1,746,579 1,706,347 40,232 Aquatics 2,475,126 2,297,608 177,518 1-loolulu Park complex 655,398 626,444 28,954 Administration 625,878 573,625 52,253 Children's zoo 470,111 464,001 6,110 Summer/Intersession 211,794 146,854 64,940 Culture and arts 111,430 95,739 15,691 Elderly activities administration 600.243 522,043 78,200 Total culture and recreation 11,795,448 11,265,589 529,859 Pension and retirement contributions 3,229,403 3,071,376 158,027 Health fund 9,695,818 9,695,756 62 Miscellaneous 4,0]0,737 3,022,408 988,329 Total current 119,239,257 111,430,984 7,808,273 Capital Outlay: Community Development Block grants (HUD): CDBG 1995 (341,187) (341,187) CDBG 1997 348,191 348,191 CDBG 2000 24,469 24,469 CDBG 2001 2,303,400 2,303,400 Total Community Development Block Grants (HUD) 2,334,873 2,334,873 (Continued) -72- 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, 2001 Variance Favorable Budget Actual (Unfavorable Expenditures (continued): Capital Outlay (continued): 1-IOME Program 1,065,275 1,065,275 Total capital outlay 3,400,148 3,400,148 Total expenditures 122,639,405 114,831,132 7,808,273 Excess of revenues over expenditures 13,456,016 18,817,558 5,361,542 Other financing sources (uses): Operating transfers in: Golf Course Fund 135,868 135,868 Sewer Fund 48,540 (48,540) Total operating transfers in 184,408 135,868 (48,540) Operating transfers out: Sewer Fund (250,000) (250,000) Capital Projects Fund (1,500,000) (1,500,000) Solid Waste Fund (6,153,607) (5,400,000) 753,607 Golf Course Fund (243,779) (243,779) Sewer Loan Fund (200,000) 200,000 Debt Service Fund (19,565,870) (19,529,404) 36,466 Total operating transfers out (27,913,256) (26,923,183) 990,073 Total other financing uses (27,728,848) (26,787,315) 941,533 Deficiency of revenues and other sources over expenditures and other uses: (14,272,832) (7,969,757) 6,303,075 Unbudgeted self-insurance activities 144,946 144,946 Fund balance at beginning of year 24,554,099 24,554,099 Fund balance at end of year $ 10,281,267 $16,729,288 $6,448,021 See accompanying independent auditors' report. -73- This page intentionally left blank. -74- . SP~CI~., VENUS PLJNI~S li1GHWAY FUND -Used to account for the costs of maintaining the County's highways and streets. Financing is provided primarily by fiael, motor vehicle weight and public utility franchise taxes. PARKING METER HIND - Used to account for the costs of maintaining County on-street and off-sweet parking areas. Financing is provided by the proceeds from parking meters. SEWER FUND - Used to account ffor costs of operating the County's various 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. CEMETERYFUND - Used to accumulate moneys to guarantee the future maintenance of County cemetery sites. Financing is provided from the sale of burial lots in County cemeteries. VEHICLE DISPOSAL FUND -Used to accumulate moneys for the towing, removal, disposal and recycling of abandoned esr discarded automobiles and automobile parts. Financing is provided by annual fees collected with motor vehicle registrations. 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 landfalls and by disposal permit 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. GEOTFIERMAL 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 reflocation program. BEA UTIFICATION FUND -Used to accumulate moneys for flee beautification of highways and disposal of abandoned vehicles within the County. Financing is provided by assessments on vehicle registrations. WORKFORCE INVESTMENT ACT FUND -Used to account for employment and training services provided to economically disadvantaged adults, dislocated workers and youth. Financing is provided by federal grants, This page intentionally left blank. -75- COUNTY OF HAWAII Special Revenue Funds Combining Balance Sheet June 30, 2001 (With comparative totals for June 30, 2000) Parking Highway Meter Sewer Bikeway Cemetery Fund Fund Fund Fund Fund Assets Cash and cash equivalents $2,346,147 $53,843 $2,137,038 $212,018 $68,450 Investments 4,000,000 3,950,000 Imprest fund - 100 Receivables: Waste disposal charges receivable, net of allowance foe doubtful accounts 921,179 Due from State of Hawaii - - Due from federal government Due from other funds 133,435 21,816 s- Other 387,287 Total receivables 133,435 1,330,282 Total assets $6,479,582 $53,843 $7,417,420 $212,018 $68,450 Liabilities and Fund Balances Liabilities: Warrants payable $ 619,988 $ $ 116,330 $ $ Accounts payable 237,870 114,401 Due to other funds 502,666 156,940 Accrued liabilities 37,640 Deferred revenue 145,717 930,464 Totalliabilities 1,506,241 1,355,775 Fund balances: Reserved for: Encumbrances 83 7,696 794, ] 45 1,986 Road repairs 366,494 Total reserved fund balance 1,204,190 794,145 1,986 Unreserved: Designated for: Equipment replacement 3,125,869 Imprest fund 100 Future year expenditures 1,882,000 l ,163,000 Future project 1,000 - Total designated fund balance 1,883,000 4,288,969 Undesignated 1,886,151 53,843 978,531 210,032 68,450 Total fund balances 4,973,341 53,843 6,06],645 212,018 68,450 Total liabilities and fund balances $6,479,582 $53,843 $7,417,420 $212,018 $68;450 See accompanying independent auditors' report. -76- Vehicle Solid Golf Geothermal 13eauti- Workforce Totals Disposal Waste Course Relocation fication Investment Fund Fund Fund Rev. Fund Fund Act Fund 2001 2000 $476,874 $1,996,291 $135,831 $922,277 $517,101 $ $8,865,870 $.14,871,058 ~ _ _ _ 7,950,000 300 2,000 - 2,400 2,400 745,693 - 1,666,872 1,585,591 ~ A _ 5,000 ~ _ 516,261 516,261 55,490 8,225 _ _ 163,476 51,737 85,862 4,900 50,817 528,866 266,979 839,780 4,900 567,078 2,875,475 1,964,797 $476,874 $2,836;371 $142,731 $922,277 $517,101 $567,078 $19,693,745 $16,838,255 $71,645 $ 475,625 $ 2,292 $ $ 28 $ $ 1,285,908 $ 954,104 443 539,394 3,644 1,236 497,283 1,394,276 910;600 3,635 211,461 47,664 69,795 992,161 950;596 37,640 1,028,619 2,104,800 1,753,771 75,723 2,255,099 53,605 1,264 567,078 5,814,785 4,569;071 170,769 215,339 5,488 758,243 44,223 2,827,889 3,460,740 M _ 366,494 127,178 170,769 215,339 5,488 758,243 44,223 3,194,383 3,587,918 3,125,869 3,087,246 300 2,000 2,400 2,400 156,000 36,119 1,000 3,238,119 1,780,000 1,000 1.,000 15b,000 300 38,119 1,000 6,367,388 4,870,646 74,382 365,633 45,519 164,034 470,614 4,317,189 3,81€3,620 401,151 58.1,272 89,126 922,277 515,837 13,878,960 12,269,184 $476,874 $2,836,371 $142,731 $922,277 $517,101 $567,078 $19,693,745 $16,838,255 -77- COUNTY OF HAWAII Special ~tevenue Funds Combining Statement of Revenues. Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Parking Highway Meter Sewer Bikeway Cemetery Fund Fund Fund Fund Fund Revenues: Taxes $ 11,226,904 $ $ $ $ Licenses and permits 2,884,201 71,690 Intergovernmental 491,171 62,172 12,357 Charges for current services 129,571 19,234 5,372,700 Miscellaneous 71,232 42,168 16,000 Total revenues 14,803,079 19,234 5,477,040 84,047 16;000 Expenditures: Current: General government - ~ Public safety 2,677,699 Highways and streets 6,877,224 - - 17,457 Sanitation - 4,300,304 Health, education & welfare 3,473 - Culture and recreation Pension and retirement contributions 337,024 124,787 Health fund 524,591 153,557 Miscellaneous 626,271 340,838 - Total expenditures 11,046,282 4,919,486 17,457 Excess (deficiency) of revenues over expenditures 3,756,797 19,234 557,554 66,590 16,000 Other financing sources (uses): Operating transfers in -General Fund - 250,000 Operating transfers out: General Fund Capital Projects Fund (3,073,289) - Total other financing sources (uses) (3,073,289) 250,000 Excess (deficiency) of revenues and other sources over expenditures and other uses 683,508 19,234 807,554 66,590 16,000 Fund balances at beginning of year 4,289,833 34,609 5,254,09] 145,428 52,450 Fund balances at end of year $ 4,973,341 $53,843 $6,061,645 $212,018 $68,450 See accompanying independent auditors' report. -78- Vehicle Solid Golf Geothermal Beauti- Workforce Totals Disposal Waste Course Relocation fication Investment Fund Fund Fund Rev. Fund Fund Act Fund 2001 2000 $ ~ $ ~ $ $ $ $ $ 11,226,904 $ 10,052,977 522,836 M ~ 130,715 3,609,442 3,448,057 222,364 38,964 3,478,562 4,305,590 420,255 52 3,069,100 747,835 9,338,492 8,787,986 60 334 343,00] 472,795 371,206 522,948 3,291,798 786,799 343,001 130,715 3,478,562 28,953,223 23,080,481 1,298 1,298 8,957 2,677,699 2,610,447 - 27,151 6,921,832 6,487,660 454,097 8,725,243 - 13,479,644 12,856,080 _ 3,478,562 3,482,035 2,602 759,473 - 759,473 789,424 2,378 127,956 35,211 627,356 604,436 4,284 235,076 70,731 988,239 897,848 122,364 1,020 1,090,493 1,046,334 460,759 9,210,639 866,435 1,298 27,151 3,478,562 30,028,069 25,3:03,788 62,189 (5,918,841) (79,636) 341,703 103,564 (1,074,846) (2,223,307) - 5,400,000 243,779 - 5,893,779 5,493,977 (135,868) - (135,868) (135,868) _ (3,073,289) (2,508,109) 5,400,000 107,911 2,684,622 2,850,000 62,189 (518,841) 28,275 341,703 103,564 1,609,776 626,693 338,962 1,100,113 60,851 580,574 412,273 12,269,184 11,642,491 $401,151 $581,272 $89,126 $922,277 $ 515,837 $ $13,878,960 $12,269,184 -79- COUNTY OF I-IAWAII Speciial Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Parking Meter Highway Fund Fund Sewer Fund Budeet Actual- Budeet Actual Bud¢et Actual Revenues: Taxes $10,096,110 $11,226,904 $ $ $ $ Licenses and permits 2,600,000 2,884,201 - intergovernmental 442,168 636,888 14,591 71,457 Charges for current services 50,000 129,571 19,234 5,362,885 5,372.700 Miscellaneous 29,057 71,232 500 42,168 Total revenues 13,217,335 14,948,796 19,234 5,377,976 5,486,325 Expenditures: Current: General government Public safety 3,218,512 2,663,679 Highways and streets 7,762,045 6,572,164 Sanitation 4,292,048 3,825,519 Health, education & welfare 12,000 3,473 Culture and recreation - - Pension and retirement contributions 640,000 337,025 169,764 124,787 Health fund 585,000 524,591 - 223,192 153,557 Miscellaneous 813,668 783,946 1,705,202 778,119 Total expenditures 13,031,225 10,884,878 6,390,206 4,881,982 Excess (deficiency) of revenues over expenditures 186,110 4,063,918 19,234 (1,012,230) 604,343 Other financing sources (uses): Operating transfers in 250,000 250,000 Operating transfers out (3,073,289) (3,073,289) (48,540) Total other financing sources (uses) (3,073,289) (3,073,289) 201,460 250,000 Excess (deficiency) of revenues and other sources over expenditures and other uses (2,887,179) 990,629 19,234 (810,770) 854,343 Fund balances at beginning of year 4,289,833 4,289,833 34,609 34,609 5,254,091 5,254,091 Fund balances at end of year $1,402,654 $5,280,462 $34,609 $53,843 $4,443,321 $6,] 08,434 -80- Bikeway Fund Cemetery Fund Vehicle Disposal Fund Solid Waste Fund Budget Actual Budget Ac~aaal ;_3ud~et Actual Budget Actual $ $ $ $ $ - $ $ $ x- 7,500 71,690 480,000 522,836 70,000 241,000 283,111 100 52 2,715,000 3,069,100 11,000 16,000 100 60 334 77,500 71,690 11,000 16,000 480,200 522,948 2,956,000 3,352,545 77,500 7,086 673,526 642,238 8,589,872 8,132,761 2,390 2,378 242,281 127,956 4,284 4,284 277,454 235,076 - 200,000 138.471 77,500 7,086 680,200 648,900 9,309,607 8,634,264 64,604 11,000 16,000 (200,000) (125,952) (6,353,607) (5,281,719) - 6,153,607 5,400,000 _ - 6,153,607 5,400,000 64,604 11,000 16,000 (200,000) (125,952) (200,000) 118,281 145,428 145,428 52,450 52,450 338,962 338,962 1,100,113 1,100,113 $145,428 $210,032 $63,450 $68,450 $138,962 $213,010 $900,113 $1,218,394 (Continued) -81- COUNTY OF HAWAII Special Revenue Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Geothermal Relocation Golf Course Fund Revolving Fund Beautification Fund Budset Actual Budeet Actual Budget Actual Revenues: Taxes $ - $ - $ $ $ $ Licenses and permits - 115,000 130,715 Intergovernmental 38,964 Charges for current services 828,740 747,835 - le~iscellaneous - 150,000 343,001 - Total revenues 828,740 786,799 150,000 343,001 115,000 130,715 Expenditures: Current: General government 150,000 150,000 Public safety - Highways and streets 215,000 69,812 Sanitation Health, education & welfare - Culture and recreation 785,145 764,736 Pension and retirement contributions 60,506 35,21 l - Health fund 75,000 70,731 - Miscellaneous ] 6,000 1,020 - Total expenditures 936,651 87],698 150,000 150,000 215000 69,812 Excess (deficiency) of revenues over expenditures (107,911) (84,899) 193,001 (100,000) 60,903 Other financing sources (uses): Operating transfers in 243,779 243,779 Operatingtransfersout (135,868) (135,868) ~ Total other financing sources (uses) 107,911 107,911 Excess (deficiency) of revenues and other sources over expenditures and other uses 23,012 193,001 (100,000) 60,903 Fund balances at beginning of year 60,851 60,851 580,574 580,574 412,273 412,273 Funds balances at end of year $60,851 $83,863 $580,574 $773,575 $312,273 $473,176 See accompanying independent auditors' report. ' -82- (Concluded) Total Special Revenue Funds ~Iorkforce Investment Variance Act Fund Favorable Budget Actual Budget Actual Unfavorable) $ $ $10,096,110 $11,226,904 $1,130,794 3,202,500 3,609,442 406,942 517,599 517,599 1,285,358 1,548,019 262,661 M 8,956,725 9,338,492 381,767 190,657 472,795 282,138 517,599 517,599 23,731,350 26,195,652 2,464,302 150,000 150,000 3,218,512 2,663,679 554,833 8,054,545 6,649,062 1,405,483 13,555,446 12,600,518 954,928 517,599 517,599 529,599 521,072 8,527 m 785,145 764,736 20,409 1,114,941 627,357 487,584 1,164,930 988,239 176,691 2,734,870 1,701,556 1,033,314 5 ] 7,599 517,599 31,307,988 26,666,219 4,641,769 M (7,576,638) (470,567) 7,106,071 6,647,386 5,893,779 (753,607) (3,257,697) (3,209,157) 48,540 3,389,689 2,684,622 (705,067) (4,186,949) 2,214,055 6,401,004 12,269,184 12,269, 184 $ $ $8,082,235 $14,483,239 $6.401,004 -83- 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, 2001 Variance Favorable Budget Actual Unfavorable) Revenues: Taxes: Fuel tax $ 5,896,110 $ 6,450,417 $554,307 Public utility franchise tax 4,200,000 4,776,487 576,487 Total taxes 10,096,110 11,226,904 1,130,794 Licenses and petRnits -motor vehicle weight taxes 2,600,000 2,884,201 284,201 Intergovernmental 442,168 636,888 194,720 Charges for current services 50,000 129,571 79,571 Miscellaneous 29,057 71,232 42,175 Total revenues 13,217,335 14,948,796 1,731,461 Expenditures: Public safety -traffic engineering 3,218,512 2,663,679 554,833 Highways and streets 7,762,045 6,572,164 1,189,881 Health, education ~ welfare 12,000 3,473 8,527 Pension and retirement contributions 640,000 337,025 302,975 Health fund 585,000 524,591 60,409 Miscellaneous 813,668 783,946 29,722 Total expenditures 13,031,225 10,884,878 2,146,347 Excess of revenues over expenditures 186,110 4,063,918 3,877,808 Other financing uses - operating transfers out - Capital Projects Fund (3,073,289) (3,073,289) Excess (deficiency) of revenues over expenditures and other uses (2,887,179) 990,629 3,877,808 Fund balance at beginning of year 4,289,833 4,289,833 Fund balance at end of year $ 1,402,654 $ 5,280,462 $3,877,808 See accompanying independent auditors' report. -84- 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. 2001 Variance Favorable Budget Actual Unfavorable) Revenues- Charges for current services -highways and streets $ $19,234 $ 19,234 Fund balance at beginning of year 34,609 34,609 Fund balance at end of year $34,609 $53,843 $19,234 See accompanying independent auditors' report. -85- . 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, 2001 Variance Favorable Budget Actual Unfavorable) Revenues: Intergovernmental $ 14,591 $ 71,457 $ 56,866 Charges for current services -sewer fees 5,362,885 5,372,700 9,815 Miscellaneous 500 42,168 41,668 Total revenues 5,377,976 5,486,325 108,349 Expenditures: Sanitation 4,292,048 3,825,519 466,529 Pension and retirement contributions 169,764 124,787 44,977 Health fund 223,192 153,557 69,635 Miscellaneous 1,705,202 778,119 927,083 Total expenditures 6,390,206 4,881,982 1,508,224 Excess (deficiency) of revenues over expenditures (1,012,230) 604,343 1,616,573 Other financing sources: Operating transfer in -General Fund 250,000 250,000 Operating transfer out -General Fund (48,540) 48,540 Total other financing sources 201,460 250,000 48,540 Excess (deficiency) of revenues and other sources over expenditures (810,770) 854,343 1,665,113 Fund balance at beginning of year 5,254,091 5,254,091 Fund balance at end of year $4,443,321 $6,108,434 $1,665,113 See accompanying independent auditors' report. -86- COUNTY OF HAV4'AII Silce~m-av Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30. 2001 Variance Favorable Budget Actual (Unfavorable) Revenues: Licenses and permits -bicycle tax $ 7,500 $ 71,690 $64,190 Intergovernmental 70,000 (70,000) Total revenues 77,500 71,690 (5,810) Expenditures -highways and streets 77,500 7,086 70,414 Excess of revenues over expenditures 64,604 64,604 Fund balance at beginning of year 145,428 145,428 Fund balance at end of year $145,428 $210,032 $64,604 See accopnpanying independent auditors' report. -87- COUNTY OF HAWAII Cetneter°`' Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis} For the Fiscal Year Ended June 30, 200] Variance Favorable Budget Actual (Unfavorable) Revenues -miscellaneous -sale of cemetery plots $11,000 $16,000 $5,000 Fund balance at beginning of year 52,450 52,450 Fund balance at end of year $63,450 $68,450 $5,000 See accompanying independent auditors' report. -88- COUNTY OF HAVdAII Vehicle Disposal Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable Bud¢et Actual iUnfavorable) Revenues: Licenses and permits -vehicle disposal fee $480,000 $522,836 $42,836 Charges for services -towing charges 100 52 (48) Miscellaneous 100 60 (40) Total revenues 480,200 522,948 42,748 Expenditures: Sanitation 673,526 642,238 31,288 Pension and retirement contributions 2,390 2,378 12 Health fund 4,284 4,284 Total expenditures 680,200 648,900 31,300 Deficiency of revenues over expenditures (200,000) (125,952) 74,048 Fund balance at beginning of year 338,962 338,962 Fund balance at end of year $138,962 $213,010 $74,048 See accompanying independent auditors' report. -89- COUNTY OF 1-iAWAII Solid Waste Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable Bud¢et Actual Unfavorable) Revenues: Intergovernmental $ 241,000 $ 283,111 $ 42,111 Charges for services -tipping fees 2,715,000 3,069,100 354,100 Miscellaneous 334 334 Total revenues 2,956,000 3,352,545 396,545 Expenditures: Sanitation 8,589,872 8,132,761 457,111 Pension and retirement contributions 242,281 127,956 114,325 Health fund 277,454 235,076 42,378 Miscellaneous 200,000 138,471 61,529 Total expenditures 9,309,607 8,634,264 675,343 Deficiency of revenues over expenditures (6,353,607) (5,281,719) 1,071,888 Other financing sources - operating transfers in - General Fund 6,153,607 5,400,000 (753,607) Excess (deficiency) of revenues and other sources over expenditures (200,000) 118,281 318,281 Fund balance at beginning of year 1,100,113 1,100, l 13 Fund balance at end of year $ 900,113 $1,218,394 $318,281 See accompanying independent auditors' report. -90- . COUNTY OF HAWAII Golf Course Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable BudSet Actual (Unfavorable) Revenues: Intergovernmental $ $ 38,964 $ 38,964 Charges for services 828,740 747,835 (80,900 Total revenues 828,740 786,799 (41,941) Expenditures: Culture and recreation 785,145 764,736 20,409 Pension and retirement contributions 60,506 35,211 25,295 Health fund 75,000 70,731 4,269 Miscellaneous 16,000 1,020 14,980 Total expenditures 936,651 871,698 64,953 Beficiency of revenues over expenditures (107,911) (84,899) 23,012 Other financing sources (uses): Operating transfers in -General Fund 243,779 243,779 Operating transfers out -General Fund (135,868) (135,868) Total other financing sources 107,911 107,911 Excess of revenues and other sources over expenditures and other uses 23,012 23,012 Fund balance at beginning of year 60,851 60,851 Fund balance at end of year $ 60,851 $ 83,863 $ 23,012 See accompanying independent auditors' report. -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, 2001 Variance Favorable Bud et Actual (Unfavorable) Revenues: Ie~iiscellaneous: Geothermal royalties $150,000 $208,963 $ 58,963 Sale of real property 134,038 134,038 Total revenues 150,000 343,001 193,001 Expenditures -general government 150,000 150,000 g Excess of revenues over expenditures 193,001 193,001 Fund balance at beginning of year 580,574 580,574 Fund balance at end of year $580,574 $773,575 $193,001 See accompanying independent auditors' report. -92- . COUNTY OF HAWAII ~eautifecation Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetan~ Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable Bud~2et Actual (Unfavorable) Revenues -licenses and permits -highway beautification $115,000 $130,715 $ 15,715 Expenditures -highways and streets 215,000 69,812 145,188 Excess (deficiency) of revenues over expenditures (100,000) 60,903 160,903 Fund balance at beginning of year 412,273 412,273 M Fund balance at end of year $312,273 $473,176 $160,903 See acc®mpanying independent auditors' report. -93- COUNTY OF HAWAII Workforce InvestIInent Act Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable Budget Actual ~Unfavorable~ Revenues -intergovernmental -federal grants $517,599 $517,599 $ Expenditures -health, education & welfare 517,599 517,599 Fund balance at beginning of year - Fund balance at end of year $ $ $ See accompanying independent auditors' report. -94- ~E~T S~IZVICE FUNDS INTE~.E~'T 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. FOND REDEIKETION FUND -Used to accumulate moneys for the payment of general obligation :bonds. Moneys required to retire the bonds are transferred from the Caeneral Fund one year in advance of maturity. COUNTY OF HAWAII Debt Sey°vice Funds Combining Balance Sheet June 30, 2001 (With comparative totals for June 30, 2000) General Obligation Bonds Bond Totals Interest Redemption Fund Fund 2001 2000 Assets Cash and investments: Cash and cash equivalents $309,498 $ 70,390 $ 379,888 $ 286,095 Investments 10,515,417 10,515,417 9,835,484 Total assets $309,498 $10,585,807 $10,895,305 $10,121,579 Liabilities and Fund Balances Liabilities: Accrued interest payable $76,846 $ - $ 76,846 $ 100,894 Bonds payable 115,000 115,000 120,000 Total liabilities 76,846 115,000 191,846 220,894 Fund balances: Reserved for debt service - redemption of bonds and interest thereon 232,652 10,470,807 10,703,459 9,900,685 Total liabilities and fund balances $309,498 $10,585,807 $10,895,305 $10,121,579 See accompanying independent auditors' report. - 95 - COUNTY OF HAWAII Debt Service Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 (~%ith comparative totals for the fiscal year ended June 30, 2000) General Obligation Bonds Bond Totals Interest Redemption Fund Fund 2001 2000 Revenues -interest $ $ $ $ 358,563 Expenditures: Interest and finance charges 8,259,317 8,259,317 7,693,992 Principal retirement 8,903,342 8,903,342 8,688,267 Total expenditures 8,259,317 8,903,342 17,162,659 16,382,259 Deficiency of revenues over expenditures (8,259,317) (8,903,342) (17,162,659) (16,023,696) Other financing sources (uses): Operating transfers in - General Fund 8,376,417 9,589,016 17,965,433 ]7,138,069 Operating transfers out - General Fund (358,563) Total other financing sources 8,376,417 9,589,016 17,965,433 16,779,506 Excess of revenues and other sources over expenditures and other uses 117,100 685,674 802,774 755,810 Fund balances at beginning of year 115,552 9,785,133 9,900,685 17,846,888 Residual equity transfer out (8,702,013) Fund balances at end of year $ 232,652 $10,470,807 $10,703,459 $9,900,685 See accompanying independent auditors' report. -96- CAI'IT`AI, PROJECTS FUNDS CAPITAL PROJECTS FUNJ -Used to account for the costs of constructing County capital improvements financed with general obligation bond proceeds, federal and state grants, and general and special revenue fund revenues. 11ViPROVEIl1ENT DISTRICT N0. 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 Pr®jects Funds Combining Balance Sheet June 30, 2001 (With comparative totals for June 30, 2000) Capital Improvement Totals Projects District Fund No. 17 2001 2000 Assets Cash and investments: Cash and cash equivalents $ 3,539,952 $838,445 $ 4,378,397 $5,206,898 Investments 33,500,000 33,500,000 47,200,000 Total cash and investments 37,039,952 838,445 37,878,397 52,406;898 Receivables: Due from other governments: State of I-lawaii 102,911 102,911 102,815 Federal government 10,857,502 10,857,502 3,082,200 Total due from other governments 10,960,413 10,960,413 3,18.5,015 Due from other funds 25,295 25,295 126,404 Private contributions receivable 2,015 2,015 2,015 Other 9,968 9,968 Total receivables 10,997,691 10,997,691 3,313,434 Restricted assets--cash and cash equivalents 1,410 1,410 1,587 Total assets $48,039,053 $838,445 $48,877,498 $55,72.1,919 Liabilities and Fund Balances Liabilities: Warrants payable $ 2,438,142 $ $ 2,438,142 $ 1,149,285 Accounts payable 1,047,916 1,047,916 2,294,804 Due to other funds 2,198,715 2,198,715 122,994 Deferred intergovernmental revenue 1,156,312 1,156,312 534,504 Other 1,386 - 1,386 1,587 Total liabilities 6,842.471 6,842,471 4,103,174 Fund balances: Reserved for: Encumbrances 18,503,844 18,503,844 15,481,371 Unexpended allotments 7,937,131 837,374 8,774,505 15.112,636 Total reserved fund balance 26,440,975 837,374 27,278,349 30,594,007 Unreserved: Designated for: Road repairs 3,077,370 3,077,370 3,928,183 Development impact 1,694,205 1,694,205 1,020,806 SRF projects 631,857 631,857 338,599 Total designated fund balance 5,403,432 5,403,432 5,287,588 Undesignated 9,352,175 1,071 9,353,246 15,737,150 Total fund balances 41,196,582 838,445 42,035,027 51,618,745 Total liabilities and fund balances $48,039,053 $838,445 $48,877,498 $55,721,919 See accompanying independent auditors' report. -97- COUNTY OF HAWAII Capital Projects Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Capital Improve. Totals Projects District Fund No. 17 2001 2000 Revenues: Intergovernmental $15,545,326 $ $15,545,326 $ 5,810,824 Interest 24 24 2,166 Miscellaneous: Developer's contributions 673,400 673,400 532,407 Other - 1,792 1,792 861 Total revenues 16,218,750 1,792 16,220,542 6,346,258 Expenditures: General government 3,993,441 3,993,441 648,553 Public safety 1,015,074 - 1,015,074 595,499 Flighmvays and streets 18,958,706 18,958,706 9,213,894 Sanitation 4,762,148 4,762,148 5,221,927 Culture and recreation 5,124,893 5,124,893 3,429,247 Miscellaneous 1,887 1,887 51,827 Total expenditures 33,854,262 1,887 33,856,149 19,160,947 Deficiency of revenues over expenditures (17,635,512) (95) (17,635,607) (12;$14,689) ®ther financing sources (uses): State Revolving Fund loans 3,422,395 3,422,395 5,530,217 Proceeds frown sale of bonds 29,877,561 Proceeds from sale of refunding bonds 18,775,575 Payment to refunded bond escroav agent (18,775,575) Operating transfers in: 1-lighway Fund 3,073,289 3,073,289 2,508,109 General Fund 1,500,000 - 1,500,000 Park Dedication Fund 56,205 56,205 12,862 Total other financing sources 8,051,889 8,051,889 37,928,749 Excess (deficiency) of revenues and other sources over expenditures and other uses (9,583,623) (95) (9,583,718) 25,114,060 Fund balances at beginning of year 50,780,205 838,540 51,618,745 26,504,685 Rand balances at end of year $41,196,582 $838,445 $42,035,027 $5.1,618,745 Sec accompanying independent auditors' report. -98- COUNTY OF I-IAWAII Capitall Projeets Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 Authorizaeions 2000 Encumbrances Lapsed Project Title Forwarded Appropriations Total Expenditures Encumbrances Balances Public Safety: Fire: HPP Volunteer Fire Station Water $ 1,000,000 $ $ 1,000,000 $ 536,089 $ 402,716 $ 61.195 Kalaea Fire Station ~ 1,691.000 1,691,000 1,691,000 Total Fire ].000,000 1,691.000 2,691.000 536,089 402,716 1.752.195 Police: Police Air Duct Removal 39,134 - 39,134 39,134 - Public Safety Air Conditioning Revofit 300,000 100.000 400,000 19,787 375,960 4,253 Public Safety Complex Cellblock 352,000 352,000 - 352,000 - Kona Police Station Air Conditioning Retrofit 100,000 (100,000) - Kealakehe Refueling Station 300,000 (150,000) 150,000 - 150,000 - Islandwide Communication Tower Replacement 25,763 - 25,763 - 25,763 - Microwave Radio Repeater - 319,568 319,568 - 319,568 Microwave Radio Repeater -Federal Funds 100,000 100.000 100,000 Total Police 1,116,897 269,568 1.386.465 58,921 1,323,291 4,253 Flood Control: Waiakea Stream BMP Project -Federal Funds 14.605 14,605 36 14,569 Alenaio Stream Flood Control 900 126,000 126,900 24,950 101.950 Wailuku/Alenaio Watershed -Federal Funds 3,381,000 3,381,000 3,381,000 Upper Waiakea Stream Flood Control 899,947 899,947 32,733 867,214 North Kona Flood Control Phases 1 & 2 125,000 125.000 78,287 46,713 Sveam Repairs NRCS -Federal Funds 1,500.000 1,500.000 134,935 1,365,065 Flood Repairs FEMA -Federal Funds 4,188,469 4,188,469 20,313 4,168,156 Flood Disaster Repairs 1,500.000 1.500.000 8,441 1,49fl,559 Total Flood Control 4.421,452 7,314.469 11.735.921 274.745 11,359,226 101,950 Total Public SafeR 6.538,349 9.275.037 15,813.386 869.755 13,085.233 1,858.398 Highways and Streets: South Kopua Road 1.300 1,300 975 325 Puna Highway ]nfrastructure -Federal Funds 435,390 435;390 435,390 - Puna Highway Infrastructure -Federal Funds 191,108 191,108 125.694 65.414 Puna Local Road Improvements 614,144 614,144 248,264 5,277 360,603 Highway 137 Realignment 1,468.821 1.468.821 216,961 1,251,860 Highway 137 Realignment -Federal Funds 489,607 (352.432) 137,175 72,320 64,855 Vazious Puna Roads -Federal Funds 1,499,600 1,499,600 1,358.073 141,527 Puna Local Road Improvements 22,544 22,544 22,544 South Kopua Road Phase Il 334,004 334,004 410 333,594 Saddle Road/Kaumana Drive Curve Improvemenu 241,023 200.000 441.023 246,666 18,680 175,677 Ululani Street 9,010 9,010 3,505 - 5,505 South Hilo Traffic Signal Upgeade -Federal Funds 1,712.865 1.712,865 1,018,400 694,465 Honomu/Mamalahoa Bridge 400,000 19,556 419.556 1,007 416,600 1,449 Komohana Street Culvert:-Replacement - 300,000 300.000 300,000 Kawailani/Ponahawai/Ainaola/lwalani Streets 250,000 250,000 - 207,108 42,892 South Hilo Loca! Road Improvements 508.990 508.990 161,092 94,259 253,639 Puatnako Sveet Extension 168.244 168,244 161,745 6,499 Puainako Street Extension -Federal Funds 23,000,000 23,000,000 928,242 22,071,758 -99- COUNTY OF HAWAII Capital Projects Feand Schedule of Appropriations. Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 (Continued) Authorizations 2000 Encumbrances Lapsed Proiect Title Forwarded AoQrooriations Total Expenditures Encumbrances Balances Highways and Streets (consinued): Puainalco Street Extension - 3,000,000 3,000,000 430,851 2,569,149 Puainako Jtrcet Extension - 816,473 816,473 - S 16,473 _ Puaiatalto Street Exier~sion - 292,869 292,869 - 292,869 Puat~alco Street Extenston - 2,100,000 2,100,000 25,205 2,074,795 - N1ohs~ttli Extension 1,000,000 (800,000) 200,000 - 200,000 - Mohouli Extension -Federal Funds 6,308,499 - 6,308,499 741,714 5,566,785 - Molr,:uli extension -Federal Funds 3,559,690 - 3,559,690 3,559,690 - - Molsoult Extension 980,000 (300,000) 680,000 151,931 528,069 - Mohouli Extension 65,178 - 65,178 9,530 55,648 - Kapialani/Ululani Rcconstrucsion 88,321 - 88,321 59,332 28,989 - Honomu/Mamalahoa Bridge -Federal Funds 1,30Q000 - 1,30Q000 2,763 1,297,237 - Onoratea Camp Road Bridge -Federal Funds 425,000 - 425,000 55 424,945 - Kinoode ~`rtiffic Signal Upgrade -Federal Funds - 1,600,000 1,600,000 - 1,600,000 Kilauea Traffic Signal Upgrade -Federal Funds - 1,600,000 1,600,000 - 1,600,000 - Lanilsaula/Manono Traffte Signal -Federal Funds - 2,200,000 2,200,000 - 2,200,000 - Komahana Street BridgelAlenaio -Federal Funds - 4,000,000 4,000,000 3,881,051 118,949 Repair Flood Aamage FHlWA -Federal Funds - 4,000,000 4,000,000 4,000,000 South Hilo Local Road Improvements - 24,634 24,634 - 24,634 HonomttMlamalalsoa Bridge -Federal Funds - 500,000 500,000 - 500,000 - Lanikaula-IVdzaxrno Tt~ic Signa% 27,852 - 27,852 22,630 5,222 Lanikaula-Manono TraPdic Signal -Federal Funds 564,897 - 564,897 2,269 562,628 Komohana Bridge -Federal Funds 110,931 110,93 ! 91,356 19,575 Komohana Bridge 4,762 4,762 - 4,762 - Kaahalcini ?ridge -Federal Funds 586,804 - 586,804 9,636 577,168 - KaahakiniBridge 22,000 - 22,000 1,881 20,119 - Rceds Island Bridge -Federal Funds 1,923,774 - 1,923,774 166 1,923,608 Reeds Island Bridge 376,616 - 376,616 - 376,616 Mohoula Street Improvements 206,739 - 206,739 - 206,739 kawailani/PohakulanUAinaolaJlwalani Streets 37,063 - 37,063 30,300 6,763 Hontssntt/Maanala4toa Bridge -Federal Funds 29,408 - 29,408 6,532 22,876 Honomu/Ma$nalahoa Bridge 2.861 - 2,861 380 2,481 i`alaoa/Mar:~alahoa Bridge -Federal Funds 106,971 - 106,971 - 106,971 OnomeaCamp Road Bridge -Federal Funds 23,924 - 23.924 3,345 20,579 OnomcaCamp Road Bridge 1,197 - 1,197 190 1,007 Hilo Road impeovements Phase 1II -Federal Funds 37,388 - 37,388 35 37,353 komohanaiPonahawai Signal -Federal Funds 18,952 - 18,952 - 18,952 Mohouli Sveet Extension 1,336,548 - 1,336,548 760,889 575,409 250 Hilo Road Improvements 119,944 - 119,944 - l 19,944 - Hilo Road l,•rtprovemcnts Phase III 11,879 - 11,879 11,879 Kapiolani Street 76,415 - 76,415 76,415 - Hilo Road tmprovemenss Phase Ill -Federal Funds 2,141,648 - 2,141,648 890,520 1,251,128 Kaahakeni Bridge Rehabilisation 135,000 - 135.000 - - 135.000 Mohouli/komohana-Kilauea -Federal Funds 3,200,000 - 3,200,000 - 3,200,000 kawailani/Pohal:ulani/Ainaola -Federal Funds 1,500,000 - 1,500,000 - I,SOQ000 - Kawailani/Pohakulani/Ainaola 50,000 - 50,000 - - 50,000 Kalopa/Mamalahoa Bridge -Federal Funds 769,048 - 769,048 6,964 762,084 I:alopa/Mamalahoa Bridge 3,706 - 3,706 812 2,894 - Opea/lvlamalahoa Bridge -Federal Funds 563,440 - 563,440 - 563,440 Waikaalulu/Mamalahoa Bridge -Federal Funds 807,455 - 807,455 167 807,288 Waikaalulu/MamalahoaBridge 12,715 12,7]5 12,718 - Inomo Bndge Replacement -Federal Funds 39,129 - 39,129 !0,128 29,00] - 1 - COUNTY OF HAWAII Capital Projects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 (Continued i Authorizations 2000 Encumbrances Lapsed Project Title Forwarded A~nronriations Total Expenditures ncumbrances Balances Highways and Strects (continued): Inoino Bridge Replacement 8,374 8,374 1,787 6,587 Ahualoa Homestead Road 150,000 150,000 335 149,665 Kalopa/Mamalahoa Bridge Replacement 183,000 183,000 715 - 182,285 Opea/Mamalahoa Bridge 156,000 156,000 - - 156.000 North Hilo Local Road Improvemenu - 96,750 96,750 84,827 11,923 Hamakua Local Road Improvements 231,800 231,800 1,960 229,840 Inoino/Mamalahoa Beidge -Federal Funds 800,000 800,000 385 799,615 North Hilo Local Road dmprovements - 3,547 3,547 3.547 Hamakua Local Road Improvements 8,834 8,834 8,834 North Hilo Highway/Traffic Division Projects 1,387 1,387 1,387 Hamakua Highwayrl'raffic Division Projects 933 933 908 25 Mamalahoa/WaimeaTown 91,560 91,560 4,355 83,187 4,018 Lindsey Road Improvements -Federal Funds 1,982,686 - 1,982,686 690,914 1,291,772 Lindsey Road Improvements 48,395 - 48,395 48,395 Mamalahoa/Lindsey-Kamamalu -Federal Funds 284,604 - 284,604 19,860 264,744 Waikoloa Road improvements -Federal Funds 556,391 - 556,391 214,837 341,554 Waikoloa Road Shoulder Improvements 58,999 58,999 50,767 - 8,232 Mamalahoa/Lindsey-Kamamalu - Private Funds 45,372 45,372 905 44,467 Waikoloa Road Improvements -Federal Funds 760,000 760,000 760,000 Mamalahoa/Lindsey-Kamamalu -Federal Funds 667,868 667.868 5,787 662,081 Mamalahoa/Lindsey-Kamamalu 127,734 {132,668) (4,934) (4,934) Lindsey Road Improvements 10,428 10,428 3.163 4,265 3,000 North Kohala Local Road Improvements 93,000 - 93,000 93,000 South Kohala Local Road Improvements 50,000 50,000 50,000 Lindsey Road Improvements 413,246 (216,807) 196,439 148,040 48,399 Paniola Drive Sidewalk Improvements 200,000 200,000 196,375 3,625 North Kohala Local Road Improvements - 3,409 3,409 3,409 South Kohala Local Road Improvements - 6,003 6,003 5,527 476 South Kohala Highway/Traffic Division Projects - 27,630 27,630 27,630 Alii Drive Culvert Replacement - 16 16 16 Kuakini Highway Widening Palani-Hualalai 595,170 595,170 595,170 South Kona Local Road Improvemenu 27,629 27.629 27.629 MamalahoaHighway (Waiaha) -Federal Funds 1,177,621 1,177,621 595,024 582,597 Kahalui-Keauhou Parkwav -Federal Funds 23,997,877 23,997,877 153.689 23,844,188 Kahalui-Keauhou Parkway 446,861 446,861 106,085 340,776 Kuakini Highway Palani-Hualalai -Federal Funds - 800,000 800,000 53,397 746,603 North Kona Local Road Improvements - 10,301 10,301 10,301 South Kona Luca{ Road Improvements 4.436 4,436 4,436 South Kona Highway/Trafl'ic Division Projects 698 698 698 North Kona Luca! Road Improvements 302,000 302,000 302,000 Alii Drive Desigrt/Arch Study -Federal Funds 355,257 355,257 296,287 58,970 Alii Highway -Private Funds 18,052 18,052 18,052 - Kaloko/Mamalahoa Hwy -Private Funds 48,000 - 48,000 - 48,000 Napoopoo/Mamalahoa Hwy -Private Funds 161,250 161,250 161,250 Alii Drive Bridge Replacement 7,709 7,709 1,467 5,742 Alii Deive Bridge Replacement -Federal Funds 378,650 378,650 7,930 370,720 Mamalahoa Highway Improvements 108,660 108,660 108,660 Kona Road Improvements 102,778 102,778 13,069 $9,709 Kona Road Improvements-Phase Ill 172.742 172,742 137,312 35,430 Kuakini Highway~Palani-Kualalai 154.830 154,830 13,320 136,680 4,830 Kona Roads Phase III 100,000 100.000 3,145 861 95.994 -101- COUNTY OF HAWAII Capital Pr®jects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 (Continued) Authorizations 2000 Encumbrances Lapsed ZarojectTitle orw de AppeoQriations tai Expenditures Encumbrance, glances Highways and Streets (continued): La,°~o Street Extension - 3,000,000 3,000,000 79,600 200,400 2,720,000 Palani Road Safety llatprovements - 1,850,000 !,850,000 - - 1,850,000 Resurface Mamalahoa Highway - 190,000 190,000 190,000 - Ka'u Local Road improvements - 216,500 216,500 216,500 - - Ka'u Local Road Improvements - 7,936 7,936 4,661 3,075 - Brislge flrlspection/Appraisal -Federal Funds 32,861 - 32,861 x,647 27,214 - Seismis Bsidgc Retrofit -Federal Funds 252,000 - 252,000 - 252,000 - Islattd-wide Right-of way Land Acquisition 17,983 - 17,983 - 17,983 Martienie/Kaiwilci Bridge -Federal Funds 1,624,000 - 1,624,000 - !,624,000 - Osltiro artd Other Bridges 1,794,659 - 1,794,659 16,247 1,778,412 - Bridge Replacement Program 394,159 - 394,159 3,882 390,27 7 Seislttlc Bridge Rettoiit 63,000 - 63,000 - - 63,000 Island-wide Right-0f-way Land Acquisition 20,913 - 20,913 4,557 16,356 ADA Compliance -Curb Cuts 33,483 1,800,000 1,833,483 57 1,833,426 - Onomea Camp Road Bridge Replacement - 125,000 125,000 171 124,829 Inoino/Marnalahoa Bridge Replacement - 250,000 25Q000 419 249.581 KalopaLMamalahoa Bridge Replacement - 20,000 20,000 17 19,983 OshirolAlaapali/Kaumoali Bridges 50,000 50,000 489 49,511 - Total Highways and Streets 74,434,059 52,120,951 126,555,010 19.346.484 100,200.482 7,008,044 Sanitati€~n and Waste DISposal: Solis! Waste Disposal: Hilo LandEll Closure 1,792 - 1,792 - 1,792 - Landfill Closure 53,368 - 53,368 41,000 - 12,368 Hilo Larldlill Closure 2,340 - 2,340 2,036 64 240 Kailua Lardfill Closure 20,427 - 20,427 - - 20,427 Keauhou Transfer Station 10,889 - 10,889 - - 10,889 Hilo C&D Landfill 70.000 - 70,000 - 70.000 Total Solid Waste Disposal 158.816 - 158,816 43.036 1,856 113,924 Sewers: Halo STP Demolitton/Rehabalitataon 7,402 - 7,402 - 7,402 - Banyan Drove SPS Rehabilitation 2,508 - 2,508 - 2,508 - Ainako lnterceptor Sewer A&B -SRF 10,596 - 10,596 - 10,596 kalnehamel~~a Avenue Sewer Rehabilitation 125,908 - 125,908 !25,908 - Paukag Collector Sewer -SRF 15,784 - 15,784 5,784 10,000 Waaaleea Houselot Colleceor Sewer -SRF 313,102 - 313,102 287,870 25,232 - Ainako-Gina Mani Subdivision Sewer 300,000 - 300,000 171,650 128,350 Puueo Collector Sewer 100,000 - 100,000 69,400 30,600 Paukaa Colleceor Sewer 16,948 - 16,948 12,583 4,365 Waaloa Force Mam Replacement 150,000 - 150,000 56,000 94,000 Wailuku Scwage Pump Station 400,000 - 400,000 380,000 20,000 Paukaa Colleceor Sewer -SRF 175,933 - 175,933 175,933 - - Waiakea Houselots Collector Sewer -SRF 252,018 - 252,018 204,315 47,703 - Ainako lnterceptor Sewer -SRF 111,654 111,654 13,388 98,266 - Hlla STP I)e8r1011tHOn~Rehabllfltatl0n 589,000 - 589,000 378,241 210,759 Banyan Drive SPS Rehabilitation 199,634 - 199,634 139,437 60,197 ilapnehamel:a Avenue Sewer Rehabilitation 9,640 - 9,640 q,fi40 llaumana Gardens Sewer 43,427 - 43,427 43,427 - - 102 - COUNTY OF HAWAII Capital Pc-ojeets Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 (Continued) Authorizations 2000 Encumbrances Lapsed Project Title Forwarded ApRropriations Total Expenditures Encumbrances Balances Sanitation and Waste Disposal (continued): Sewers (continued): Paukaa Sewer Collector System - SRF 43,246 - 43,246 43,246 Kealakehe Wastewater Treatment Plant 57,855 57,855 53,582 4,273 - Kealakehe Effluent Disposal -State Funds 96,139 - 96,139 - 96,139 - Kealakehe Wastewater Treattttene Plant Expansion 319,750 319,750 256 319,494 Alii Drive/Waiaha Pump Station 27,804 - 27,804 27,804 - WaiahaBay SPS - SRF 1,688 1,688 1,688 Alii Drive Sewer Projects 37,568 37,568 37,568 - Alii Drive Interceptor Sewer - E&F - SRF 209,572 209,572 209,572 - Sewer Facility Rehabilitation 17,274 17,274 590 16,684 Waiaha Bay SPS - SRF 2,576 2,576 2,576 - - Kealakehe Sewage Effluent Disposal 737,582 737,582 58,808 678,774 - Pahoehoe SPS - SRF 1,000,000 - 1,000,000 1.000,000 - Alii Drive Sewerl6Vaiaha Pump Station 69,005 69,005 12,946 56,059 Alii Drive Interceptor Sewer - E&F 61,856 61,856 - 61,856 Disappearing Sands SPS - SRF !,983,867 (59,250) 1,924,617 1,357,122 336,093 23],402 Alii Drive Interceptor Sewer C&D - SRF 9,288 - 9,288 - - 9,288 Hazard Mitigation fer Wastewater - FEMA Funding 7,518 - 7,518 7,518 - - Hazard Mitigation fer Wastewater - ERF Funding 62,500 62,500 62,500 - Hazard Mitigation for Wastewater 346,714 - 346,714 323,069 23,645 County Parks WW Facilities Upgrade -State Funds 109,400 109,400 96 109,304 Total Sewers 7,915,356 50,]50 7,965,506 5.191.646 2,471,314 302.546 Total Sanitation and Waste Disposal 8.074,172 50,150 8,124,322 5,234,682 2.473,170 416,470 Culture and Recreation: Puna Parks 5,916 5,916 4,015 1,901 Keaau Park Ballparkfiennis Lights 3,000 3,000 2,700 300 Hawaiian Beaches Soccer Field 24,800 - 24,800 2,500 22,300 Pohoiki Beach Pazk Expansion 122,205 - 122,205 104,093 18, 112 Cooper Center Outdoor Court 311,420 - 311,420 292,657 18,763 Volcano Pazk Multi-Purpose Court 300,000 300,000 218,153 81,847 Pohoiki Park Improvements 182,000 182,000 200 181,800 Ahalahui/Pohoiki Park Improvements - FEMA 1,020,330 1,020,330 1,020,330 Ahalahui/Pohoiki Park Improvement 340,1 ] 0 340,110 15,099 325,011 Park Improvements -District 2 11,820 1 1,820 4.240 7,580 Keaukaha-Panaewa Gym Planning 125,592 125,592 77,922 47,670 Hilo Municipal Golf Course Improvements 27,690 27,690 14,589 ]3,101 Kawamoto Swim Stadium 7,550 7,550 7,550 Hilo Bayfront Park ]mprovements 4,500 4,500 4,500 Council District 3 Park Improvements 54,999 54,999 54,999 Council Disvict 2 Park Improvements 12,897 12,897 12,897 Council District 4 Park Improvements 16,800 16,800 16,800 Keaukaha-Panaewa Gym Plan 993,400 993,400 15,383 978,017 Hoolulu Park Expansion 130,901 (127,471) 3.430 440 2,990 Leleiwi Beach Park 97,631 97,631 91,135 6,496 Waiakea Peninsula Improvemenu 57,412 57,412 57,411 I Seven Seas Luau House dmprovements 220,740 220,740 219,195 I,S45 Kawamoto Swim Stadium 349,595 - 349,595 349.595 - Wainaku Gym Improvements 67,916 67,916 32.217 35,699 -103- COUNTY OF HAWAII Capital Projects Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 (Continued) Authorizations 2000 Encumbrances Lapsed Project Tie1e Forwarded ~propriations Total Expenditures Encumbrances Balances Culture and Recreation (continued): Kawananakoa/Hualani Park 1,000,000 1,000,000 5,533 994,467 - Paz~aewaZ.oolmprovements 183,688 - 183,688 166,550 17,(38 Hilo Bay Recreational Complex 1,024,863 - 1,024,863 887,982 136,881 Keaukaha Park -Hawaiian Homes 150,000 - 150,000 - 150,000 Ainapla Park Equipment -Park I2edicarion Fund 12,862 12,862 5,528 7,334 Walter Victor Stadium 79,525 79,525 79,525 - - Onekahak~tta Beach Park 120,318 120,318 - 120,318 Hilo Bay Recreational Complex 750,000 750,000 694,960 55,040 - Seven Seas Luau House Improvements 330,550 ] 50,000 480,550 323,153 157,397 Hilo Bay~ont Photovoltaic Lights -Federal Funds - 20,000 20,000 - 20,000 Hilo Bayfront Photovoltaic Lights -State Funds - 30,000 30,000 - 30,000 Keaukaha Gymnasium OHA -State Funds - 667,000 667,000 - 667,000 Ka~ro'ampta Swim Stadium 2,040 - 2,040 - 2,040 - HonokaaSwimming Pool Improvements 87,000 87,000 - 87,000 - Coancll Disvict 1 Park Improvements 1,460 - 1,460 669 - 791 Council District 9 Park Improvements 2,087 - 2,087 - 2,087 South Kohala Trails and Greenways 46,921 - 46,921 10,577 36,344 - NewWaikoloaPark 459,681 (331,892) 127,789 3,600 107,]73 17,016 Waimea Trails and Greenways -Federal Funds 224,582 224,582 42,305 182,277 Waimea Senior Center Renovation 39,592 - 39,592 21,098 2,439 16,055 Waimea Trails and Greenways - 56,205 56,205 56,205 - Kailua Playground Park 894 - 894 - 894 Kona Gym Showers/L.ockers 64,913 - 64,913 11,223 53,690 Kailua Playground Park 17,742 17,742 - 17,742 - Dis. Sands/PahoehoelKaltaluu -Private Funds 69,481 69,481 26.527 42,954 Kaltaluu Park Improvements -Private Funds 5,250 - 5,250 5,250 - Hookena Beach Composting Toilcu 1,224 1,224 1:124 Miloli'i Beach Composting Toilet 1,702 1.702 1,702 Hale Halewai Repairs/Improvements 173,150 173,150 173,150 Council District 7 Park improvements 3,062 - 3,062 - 3,062 Council Disvict 8 Park Improvements 6,397 - 6,397 6,397 Hookena Beach Park improvements 26,045 26,045 - 26,045 Council District 7 Park Improvements 6,135 6,135 6,135 Council District 8 Park Improvements 26,096 - 26.096 17,160 8,936 Hale Halewai Repairs/improvements 446,935 446,935 446,935 - Milolii Park Restroom Improvements 70,546 - 70,546 3,000 700 66,846 Hookena Park Restroom Improvemenu 125,000 125,000 125,000 Whittinp on Park Restrooms 50,000 50,000 - - 50,000 Handicap Barrier Removal 24,222 - 24,222 24,222 Island-wide ADA Compliance 92,298 - 92,298 2,818 89,480 Wastewater System Upgrade 18,104 18,104 12,495 5,609 ADA Compliance 56,691 56,691 56,691 - Repairs to Facilities 6,569 6,569 - 3,150 3,419 ADA Compliance 1,999,789 1,999.789 337,398 1,662,391 Repairs to Facilities 394,340 394,340 210,507 183,833 Repairs to Facilities 500,000 - 500,000 360,017 139,983 County Swimming Pools - Grculation Systems 100,000 100.000 - 100.000 Total Culture and Recreation 12.850,868 903.952 13,754,820 5,298,416 8.092,367 364.037 - 104 - COUNTY OF HAWAII Capital Projeets Fund Schedule of Appropriations, Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) For the Fiscal Year Ended June 30, 2001 (Concluded) Authorizations 2000 Encumbrances Lapsed Proiect Title Forwarded Aporonriations Total Expenditures encumbrances Balances Miscellaneous: East/West Hawaii Office Renovation 2,854,966 2,854,966 2,822,385 32,581 East/WestHawaiiOfficeRenovation 200,100 200,100 200,100 Easvl~Vest Hawaii Office Renovation Phase Il 4,529.000 4,529,000 1.314.381 3,214,619 Rerocf Old Memarial Hospital 650,000 (650,000) - East/West Hawaii Building Repairs 310,000 (295,045) 14,955 14,955 Ka'u Agricultural Water System -State Funds 500.000 500,000 500.000 Total Miscellaneous 4,515,066 3,583,955 8,099,02] 4,351.821 3.747.200 Total Capital Projecu Fund $]06,412,514 $65,934,045 $172,346.559 $35,101,158 $127,598.452 $9.646.949 See accompanying independent auditors' report. - 105 - This page intentionally left blank. - 106 - _ PR®P~T`Y FUNDS ~1~T~RP~ FU1o~,s KULAlI1V1A1~T0 E'I~E'RLY1~'OU~SING PROJECT -Used to account for the operation of a housing project for love uacogne elderly persons located north of f€ilo. levenues are otn rents collected and federal rent subsidies. OULI EKA.~II AFF'ORDA~4LE I~'OUSING PROJECT - Used to account for the operation of a 33-unit single faanily affordable housing project located in Waimea. revenues are frown ants collected, COUNTY OF HAWAII Enterprise Funds Combining Balance Sheet June 30, 2001 (With comparative totals for June 30, 2000) Kulaimano Ouli Ekahi Totals Elderly Affordable Mousing I-lousing Pr_ o~ect Project 2001 2000 Assets Current assets: Cash and cash equivalents $309,689 $ 22,368 $332,057 $287,046 Investaraents 500,000 500,000 500,000 Ixr?prest fund 50 100 150 150 Accounts receivable 2,949 20,106 23,055 16,778 Interest receivable 1,193 80 1,273 1,235 Other receivable - 1,464 1,464 1,159 Prepaid expenses 1,865 1,865 1,868 Total current assets 815,746 44,118 859,864 808,23.6 Restricted assets -cash and cash equivalents: Tenant security deposits 9,250 19,366 28,616 26,783 I3ebt service reserve 176,019 176,019 172,541 Operating reserve 14,175 14,175 13,895 Total restricted assets -cash and cash equivalents 185,269 33,541 218,810 213,219 Fixed assets: Land 250,000 503,877 753,877 753,877 Buildings 1,136,008 1,136,008 1,136,008 Grounds and site improvements 261,000 - 261,000 261,000 Furnishings and equipment 90,045 - 90,045 87,332 1,737,053 503,877 2,240,930 2,238,217 Accumulated depreciation (761,581) (761,581) (733,154) Fixed assets, net of accumulated depreciation 975,472 503,877 1,479,349 1,505,063 Total assets $1,976,487 $581,536 $2,558,023 $2,526,518 (Continued) - 107 - COUNTY OF HAWAII Enterprise Funds Combining Balance Sheet June 30, 200 ] (With comparative totals for June 30, 2000) (Concluded) Kulaimano Ouli Ekahi Totals Elderly Affordable Housing Housing Pr__olect Proiect 2001 2000 Liabilities and Ectuity Current liabilities: Warrants;payable $ 14,432 $ $ 14,432 $ 14,253 Accounts payable 1,063 1,063 8,266 Due to other funds 1,799 1,799 Due to developer 7,729 7,729 7,729 Unearned rental income 465 1,953 2,418 1,781 Notes payable -current 16,167 16,167 14,925 Total current liabilities 33,926 9,682 43,608 46,954 Current liabilities payable from restricted assets - Tenant security deposits payable 8,283 18,084 26,367 25,525 Notes payable 1,101,787 1,101,787 1,120,214 Total liabilities 1,143,996 27,766 1,171,762 1,192,693 Equity: Contributed capital: Developers 250,500 544,367 794,867 794,867 Intergovernmental 160,796 160,796 160,796 Total contributed capital 411,296 544,367 955,663 955,663 Retained earnings: Reserved for debt service ] 76,019 176,019 172,541 Unreserved 245,176 9,403 254,579 205,621 Total retained earnings 421,195 9,403 430,598 378,162 Total equity 832,491 553,770 1,386,261 1,333,825 Total liabilities and equity $1,976,487 $581,536 $2,558,023 $2.,526,518 See accompanying independent auditors' report. - 108 - COUNTY OF HAWAII enterprise Funds Combining Statement of Revenues, Expenses and Changes in Retained Earnings (Deficit) For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Kulaimano Ouli Ekahi Totals Elderly Affordable Housing Housing Proict Protect 2001 2000 Operating revenues: Rental receipts from tenants $ 77,829 $210,760 $288,589 $282,801 Rental subsidy from federal government -HUD 147,669 147,669 148,434 Laundry receipts 2,302 2,302 2,796 Miscellaneous 4,350 4,350 3,350 Total operating revenues 227,800 215,110 442,910 437,381 Operating expenses: Utilities 27,615 31,655 59,270 58,163 General and administration 59,189 80,631 139,820 143,946 Maintenance and repairs 29,646 11,413 41,059 71,582 Lease expense 76,226 76,226 76,226 Depreciation 33,747 33,747 34,470 Total operating expenses 150,197 199,925 350,122 384,387 Operating income 77,603 15,185 92,788 52,994 Nonoperating revenues (expenses): Interest income 35,911 464 36,375 33,294 Interest expense on notes payable (76,727) (76,727) (82,639) Total nonoperating revenues (expenses) (40,816) 464 (40,352) (49,345) Net income 36,787 15,649 52,436 3,649 Retained earnings (deficit) at beginning of year 384,408 (6,246) 378,162 374,513 Retained earnings at end of year $421,195 $9,403 $430,598 $378,162 See accompanying independent auditors' report. - 109 - COUNTY OF HAWAII Enterprise )Funds Combining Statement of Cash Flows For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Kulaimano Ouli Ekahi Totals Elderly Affordable Hsg. Project Hsi. Project 2001 2000 Cash flows from operating activities: Cash received from tenants $ 78,264 $211,874 $290,138 $289,806 Cash received from federal government -HUD 147,669 147,669 148,434 Cash payments to suppliers for goods and services (12],672) (199,925) (321,597) (341,578) Net cash provided by operating activities 104,261 11,949 116,210 96,662 Cash flows from capital and related financing activities: Principal paid on-notes payable (17,185) (17,185) (11,272) Interest paid on notes payable (76,727) (76,727) (82,639) Acquisition of capital assets (8,033) (8,033) (8,065) Net cash used in capital and related financing activities (101,945) ~ (101,945) (101,976) Cash flows from investing activities: Purchase of investments (1,500,000) (1,500,€300) (1,500,000) Proceeds from sale and maturities of investments 1,500,000 1,500,000 1,500,000 Interest on investments 35,868 469 36,337 33,253 Net cash provided by investing activities 35,868 469 36,337 33.253 Net increase in cash and cash equivalents 38,184 12,418 50,602 27,939 Cash and cash equivalents at beginning of year 456,824 43,591 500,415 472,476 Cash and cash equivalents at end of year $495,008 $56,009 $551,017 $500,415 tteconciliation of aperating i®conae to net cash provided by operating activities: Operating income $ 77,603 $ 15,185 $ 92,788 $52,994 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 33,747 33,747 34,470 Increase in accounts receivable (1,252) (5,025) (6,277) (941) Increase in other receivables (305) (305) (18) Decrease (increase) in prepaid expenses 3 3 (62) Increase in warrants payable 179 179 1,076 Increase (decrease) in accounts payable (7,203) (7,203) 7,325 Increase in due to other funds 1,799 1,799 Increase in unearned rental income 187 450 637 1,378 Increase (decrease) in tenant security deposits payable (802) 1,644 842 440 Total adjustments 26,658 (3,236) 23,422 43,668 Net cash provided by operating activities $104,261 $11,949 $116,210 $96,662 See accompanying independent auditors' report. - 110 - . ~UST° AND AGENCY FUNDS a~~~Nl)~LE T`I~US7` FIIIVI~S PARK DEDICATION FUND -Used to account for moneys deposited with the County by subdividers to provide land for parks and playgrounds in subdivisions. IIA 1VA11 COUNTY IfOUSING AGENCY -Used to account for Federal and County moneys used to provide public housiaag assistance within the County. GEOTIIER1iaAL ASSET FUND -Used to account for funds received from geothermal developers to mitigate the effects of geothermal energy development. ~ (iE1VCI' ~ (JIVES STATE 1$'EIGh~' TAX FUND -Used to account for the collection and payment to the State of motor vehicle weight takes colflected by the County on behalf of the State. dll~IPROVErbIENT DISTRICT NO. 17 -Used to account for the collection of assessments and related interest from property ownea~ in improvement districts for financing the payments of special assessment bond interest and lsrincipal. ~'roceeds from such bonds are used to finance the construction of improvements and are accounted for in the capital projects funds. Itl?PROVEt11E1VTDISTRKT 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. 116~IPROVE~LiENT DISTRICT BOND AND INTEREST REDE~IIPTION FUND - Used to account for debt service on special assessment bonds. PERFOR1VdA1VCE 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 respeceive departments. FLEXIBLE SPENDING ACCOUNT e Used to account for hands 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 1VARRANTS FUND As requried by state law, used to account for funds remaining when County warrants are not cashed before they lapse. N01V-PROFIT LICENSE PLATES FUND -Used to account for proceeds from sale ofspecially-marked license plates, such proceeds to go as indicated to participating non-profit agencies. ORGAN AND TISSUE EDUCATION FUND -Used to accound for voluntary donations paid with motor vehicle registration renewals that are designated for the statewide ~Iawaii organ and tissue education farad. COUNTY OF HAWAII 'Trust and Agency' Funds Combining Balance Sheet June 30, 2001 (With comparative totals for June 30, 2000) Expendable Trust Funds awai~ County Totals Park I-Iousing Caeothermal Agency Dedication Agency Asset Funds 2001 2000 Assets Cash and investments: Cash and cash equivalents $ $6,903,976 $ $4,554,482 $11,458,458 $9,193,797 Investments 67,813 176,865 1,251,128 325,666 1,821,472 1,716,862 Imprest fund 100 100 100 Total cash and investments 67,813 7,080,941 1,251,128 4,880,148 13,280,030 10,910,759 Receivables: Due from federal government 25,343 25,343 1,404 Due from other funds 69,795 - 3,484,832 3,554,627 3,537,152 Other 847,974 - 847,974 875,238 Total receivables 943,112 3,484,832 4,427,944 4,413,794 Restricted assets -cash ~i cash equiv. 1,400,000 1,400,000 1,400,000 Total assets $67,813 $8,024,053 $1,251,128 $9,764,980 $19,107,974 $16,724,553 Liabilities and Ectuity Liabilities: Warrants payable $ - $ 71,286 $ $1,624,426 $ 1,695,712 $ 1,968,450 Accounts payable 14,941 14,941 9,105 Due to other funds 114,816 1,568,682 1,683,498 1,518,426 Accrued liabilities 12,676 1,105,055 1,117,731 1,116,793 Customer advances and deposits 115,063 115,063 170,465 Assets held for the benefit of improvement districts 5,351,754 5,351,754 5,045.445 Total liabilities - 213,719 9,764,980 9,978.699 9,828,684 Fund balances: Reserved for encumbrances 3,069,564 1,071,774 4,141,338 3,520,170 Unreserved: Designated for: Imprest fond 100 - 100 100 Affordable housing 33,830 33,830 349,785 Future year expenditures 279,068 279,068 454,671 fiotal designated fund balance 312,998 312,998 804,556 Undesignated 67,813 4,427,772 179,354 4,674,939 2,571,143 Total fund balances 67,813 7,810,334 1,251,128 9,129,?75 6,895,869 Total liabilities and fund balances $67,813 $8,024,053 $1,251,128 $9,764,980 $19,107,974 $1.6,724,553 See accompanying independent auditors' report. - 111 - COUNTY OF HAWAII Agency funds Combining Balance Sheet June 30, 2001 (With comparative totals for June 30, 2000) Performance State Improvement Improvement and Flexible Weight District District Refundable Payroll Spending Tax No. 17 Revolving Deposits Clearance Account Assets Cash and investments: Cash and cash equivalents $590,486 $3,626,088 $ $139,781 $ $184,010 InvestYnents 325,666 Total cash and investments 590,486 3,626,088 325,666 139,781 184,010 Due from other funds ~ 3,475,420 Restricted assets -cash cash equiv. 1,400,000 Total assets $590,486 $5,026,088 $325,666 $139,781 $3,475,420 $184,010 Liabilities Warrants payable $590,486 $ $ - $24,368 $1,008,954 $ Due to other funds - 350 1,568,332 Accrued liabilities 898,134 184,010 Customer advances and deposits - 115,063 Assets held for the benefit of improvement districts 5,026,088 325,666 Totalliabilities $590,486 $5,026,088 $325,666 $139,781 $3,475,420 $184,010 See accompanying independent auditors' report. - 112 - Non-Profit Lapsed License Organ & Totals Warrants Plates Tissue Educ. Fund Fund Fund 2001 2000 $13,499 $200 $418 $4,554,482 $4,303,128 325,666 306,086 13,499 200 418 4,880,148 4,609,214 9,412 3,484,832 3,537,152 1,400,000 1,400,000 $22,911 $200 $418 $9,764,980 $9,546,366 $ -$200 $418 $ 1,624,426 $ 1,793,951 1,568,682 1,429,214 22,911 I ,105,055 1,107,291 115,063 170,465 5,351,754 5,045,445 $22,911 $200 $418 $9,764,980 $9,546,366 - 113 - . COUNTY OF HAWAII Expendable 'Trust Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Fiscal Year Ended June 30, 2001 (With comparative totals for the fiscal year ended June 30, 2000) Hawaii County Totals Park Housing Geothermal Dedication A Asset 2001 2000 Revenues: Intergovernmental $ _ $9,121,565 $ $9,121,565 $7,685,121 Interest 7,457 225,187 73,330 305,974 250,445 Miscellaneous: Contributions - 28,320 50,000 78,320 290,720 Resale of proper tyy 288,923 288,923 512,908 Other 8 8 392 Total revenues 7,457 9,664,003 123,330 9,794,790 8,739,586 Expenditures: Current: General government 1,971 Health, education and welfare - 7,341,467 7,341,467 7,624,221 Pension and retirement contributions - 163,712 163,712 138,628 fiotal expenditures 7,505,179 7,808,179 7,?64,820 Excess of revenues over expenditures 7,457 2,158,824 123,330 2,289,611 974,766 Other financing use - Operating transfer out -Capital Projects Fun (56,205) (56,205) (12.862) Excess (deficiency) of revenues over expenditures and other financing uses (48,748) 2,158,824 123,330 2,233,406 961,904 Fund balances at beginning of year 116,561 5,651,510 1,127,798 6,895,869 5,933,965 Fund balances at end of year $67,813 $7,810,334 $1,251,128 $9,129,275 $6,895,869 See accompanying independent auditors' report. - 114 - _ COUNTY OF HAWAII ~Iawaii County Housing t~genc`~ Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetar~~ Basis) For the Fiscal Year Ended June 30, 2001 Variance Favorable Bud et Actual (Unfavorable) Revenues: Intergovernrrtental - Federal grants: Housing preservation grant $ 40,000 $ 40,000 $ HUD -Housing assistance 513,000 191,752 (321,248) HUD -Voucher program 6,816,000 8,853,459 2,037,459 Total intergovernmental 7,369,000 9,085,211 1, ~ 16,211 Interest earned 10,690 225,187 214,497 Resale of property 288,923 288,923 Other 28,328 28,328 Total revenues 7,379,690 9,627,649 2,247,959 Expenditures: Health, education & welfare 7,968,646 7,876,281 92,365 Pension and retirement contributions 142,400 90,951 51,449 Health Fund 73,100 72,761 339 Total expenditures 8,184,146 8,039,993 144,153 Excess (deficiency) of revenues over exenditures (804,456) 1,587,656 2,392,112 Fund balance at beginning of year 5,651,510 5,65],510 Fund balance at end of year -budgetary basis $4,847,054 7,239,166 $2,392, 112 Adjustments to conform with generally accepted accounting principals: Encumbrances at beginning of year (2,498,396) Encumbrances at end of year 3,069,564 Fund balance at end of year - GAAP basis $7,810,334 See accompanying independent auditors' report. - 115 - COUNTY OF HAWAII Agenc~~ Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30. 2001 Balance Balance July 1, June 30, 2000 Additions Deductions 2001 State Weight Tax Fund Assets Cash and cash equivalents $599,844 $ 6.640,287 $ 6,649,645 $590,486 Liabilities Warrants payable $599,844 $ 6,640,287 $ 6,649,64 $590,486 Accrued liabilities -due to State of Hawaii 6,640,287 6,640,287 Total liabilities $599,844 $13,280,574 $13.289,932 $590,486 '!ffiproveuaent Dastrist No. 17 Assets Cash and cash equivalents $3,339,359 $1,881,609 $1,594,880 $3,626,088 Restricted assets -cash and cash equiv. 1,400,000 1,400,000 Total assets $4,739,359 $1,881,609 $1,594,880 $5,026,088 Liabilities Assets held for the benefit of improvement districts $4,739,359 $1,881,609 $1,594,880 $5,026,088 Iauproveme®t District Revolving Fund Assets Cash and cash equivalents $ $ 19,580 $ 19,580 $ Investments 306,086 19,580 325,666 Total assets $306,086 $39,160 $19,580 $325,666 Liabilities Assets held for the benefit of improvement districts $306,086 $19,580 $ $325,666 (Continued) - 116 - COUNTY OF HAWAII Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2001 Balance Balance July 1, June 30, 2000 Additions Deductions 2001 (Continued) Inaproveanent Distract Bond and Interest Rede~apta®n Faind Assets Cash and cash equivalents $ $1,593,088 $1,593,088 $ Liabilities Accrued liabilities -debt service on special assessment bonds $ $1,593,088 $1,593,088 $ Perforaaaance and Refundable I)e~osiits Fu®d Assets Cash and cash equivalents $189,189 $270,849 $320,257 $139,781 Liabilities Warrants payable $17,864 $319,629 $313,125 $ 24,368 Due to other funds 860 350 860 350 Customer advances and deposits 170,465 270,901 326,303 115,063 Total liabilities $189,189 $590,880 $640,288 $139,781 Payroll Clearance 1Fa~nd Assets Cash and cash equivalents $ $ 79,800,819 $ 79,800,819 $ Due from other funds 3,529,977 79,682,131 79,736,688 3,475,420 Other receivables 43,651 43,651 Total assets $3,529,977 $159,526,601 $159,581,158 $3,475,420 Liabilities Warrants payable $1,176,043 $ 79,781,576 $ 79,948,665 $1,008,954 Due to other funds 1,421,154 1,577,409 1,430,231 1,568,332 Accrued liabilities 932,780 16,477,867 16,512,513 898,134 Total liabilities $3,529,977 $97,836,852 $97,891,409 $3,475,420 (Continued) - 117 - COUNTY OF HAWAII Agency Funds Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2001 Balance Balance July 1, June 30, 2000 Additions Deductions 2001 (Continued) Flexible Spendang Account Assets Cash and cash equivalents $159,975 $389,042 $365,007 $184,010 Liabilities Accrued liabilities $159,975 $389,042 $365,007 $184,010 Lapsed Warrants Fund Assets Cash and cash equivalents $14,506 $ 7,175 $ 8,182 $13,499 Due from other funds 7, 175 9,412 7,175 9,412 Total assets $21,681 $16,587 $15,357 $22,911 Liabilities Warrants payable $ $ 982 $ 982 $ Due to other funds 7,200 7,200 Accrued liabilities 14,481 9,412 982 22,911 Total liabilities $21,681 $10,394 $9,164 $22,911 I+ion-Profit License Plates Fund Assets Cash and cash equivalents $200 $700 $700 $200 Liabilities Warrants payable $200 $700 $700 $200 (Continued) - 118 - COUNTY OF HAWAII Agency Rands Combining Statement of Changes in Assets and Liabilities For the Fiscal Year Ended June 30, 2001 Balance Balance July 1, June 30, 2000 Additions Deductions 2001 (Concluded) ®rgaaa and Tassue Educati®n Fund Assets Cash and cash equivalents $55 $1,611 $1,248 $418 Liabilities Warrants payable $ - $1,666 $1,248 $418 Accrued liabilities 55 55 Total liabilities $55 $1,666 $1,303 $418 'T`otal -All Agency Funds Assets Cash and cash equivalents $4,303,128 $ 90,604,760 $ 90,353,406 $4,554,482 Investments 306,086 19,580 325,666 Due from other funds 3,537,152 79,691,543 79,743,863 3,484,832 Other receivables 43,651 43,651 Restricted assets -cash and cash equivalents 1,400,000 1,400,000 Total assets $9,546,366 $170,359,534 $170,]40,920 $9,764,980 Liabilities Warrants payable $1,793,951 $ 86,744,840 $ 86,914,365 $1,624,426 Due to other funds 1,429,214 1,577,759 1,438,291 1,568,682 Accrued liabilities 1,107,291 25,109,696 25,111,932 1,105,055 Customer advances and deposits 170,465 270,901 326,303 1 15,063 Assets held for the benefit of improvement districts 5,045,445 1,901,189 1,594,880 5,381,784 Total liabilities $9,546,366 $115,604,385 $115,385,771 $9,764,980 See accompanying independent auditors' report. - 119 - This page intentionally left blank. - 120 - G~N~IZAL LONG-'I`~~Nd DEBT ACCOUNT` GROUP °I`his account group accounts for the long-term debt of the Primary Crovernment except that related to the enterprise Pund. COUNTY OF FIAWAII General Long-reran Debt Account Group Schedule of General Long-Term Debt June 30, 2001 (With comparative amounts for June 30, 2000) 2001 2000 Amount Available and to be Provided For Retirement of General Long-Term Debt Amount available in Debt Service Funds $ 10,470,807 $ 9,785,133 Amounts to be provided for general long-term debt: General obligation bonds 122,141,600 129,586,100 State Revolving Fund loans 32,294,121 31,016,242 Accrued compensated absences 17,316,272 18,687,530 Estimated claims and judgments 14,580,426 11,930,674 Capital lease obligations 2,399,868 2,872,678 Landfill closure and postclosure care costs 21,890,000 22,262,000 Total amounts to be provided for retirement of general long-term debt 210,622,287 216,355,224 Total $221,093,094 $226,140,357 General Loner-Term Debt Payable General obligation bonds payable: 1977 Series A, public improvement bonds $ 259,000 $ 276,000 1989 Series, refunding bonds 900,000 1,350,000 1993 Series, refunding and public improvement bonds 54,045,000 57,220,000 1996 Series A, public improvement bonds 26,600,000 27,795,000 1996 Series B, public improvement bonds 650,500 680,500 1997 Series A, public improvement bonds 3,473,000 3,614,500 1999 Series A, public improvement bonds 30,000,000 30,000,000 1999 Series I3, refunding bonds 14,585,000 16,670,000 Total general obligation bonds payable 130,512,500 137,606,000 Other general long-term debt: State Revolving Fund loans 34,394,028 32,781,475 Accrued compensated absences 17,316,272 18,687,530 Estimated claims and judgments 14,580,426 11,930,674 Capital lease obligations 2,399,868 2,872,678 Landfill closure and postclosure care costs 21,890,000 22,262,000 Total other general long-term debt 90,580,594 88,534,357 Total $221,093,094 $226,140,357 See accompanying independent auditors' report. - 121 - COUNTY OF HAWAII General Long-Term Debt Account Group Schedule of Debt Service Requirements to Maturit~~ for General Obligation Bonds June 30.2001 Total Bonds Bonds Fiscal Outstanding Year at Ended Beginning Total June 30 of Year Principal Interest Requirements 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 5,006,500 695,150 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 $130,512.500 $56,167,828 $186,680,328 See accompanying independent auditors' report. - 122 - GENE~AI. FIND ASSETS ACCOUNT GROUP °I°his account group accounts for all fixed assets of the Primary Government other than those recorded in the Enterprise Fund. _ _ _ COUNTY OF HAWAII General Fixed Assets Account Group Schedule of General Fixed Assets by Source June 30, 2001 (d~ith comparative amounts for June 30, 2000) 2001 2000 General fixed assets: Land $ 18,841,399 $ 16,534,898 Buildings and structures 235,262,051 224,950,257 Machinery and equipment 55,787,816 53,698,533 Construction in progress 43,214,895 21,201,546 Total $353,106,161 $316,385,234 Investment in general fixed assets by source: Capital Pro,~ects Funds: General obligation bonds $ 126,292,190 $ 101,399,687 Federal grants 74,967,802 67,933,551 State grants 34,750,314 31,754,680 General Fund revenues 33,481,097 33,11.8,962 General Fund -Federal revenue 7,556,029 6,108,567 General Fund -State revenue 2,464,948 2,244,647 Special Revenue Funds revenues 9,433,523 9,301,561 Contributions 3,618,434 3,626,555 Assets acquired prior to 1979 (sources undetermined) 60,541,824 60,897,024 Total $353,106,161 $316,385,234 Sec accoanpanying independent auditors' report. -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, 2001 Balance Balance July 1, June 30, 2000 Additions Deductions 2001 General government $ 16,002,206 $10,428,577 $ 1,330,079 $ 25,100,704 Public safety 44,740,702 1,069,932 1,279,787 44,530,847 Highways and streets 11,814,342 524,287 574,019 11,764,610 Sanitation 141,499,408 6,302,655 351,230 147,450,833 Health, education and welfare 617,953 2,860 23,109 597,704 Culture and recreation 67,012,363 831,000 701,469 67,141,894 Educational facilaties 8,521,194 21,678 8,499,SI6 Housing and community development 4,975,520 135,834 306,196 4,805,158 Construction in progress 21,201,546 28,298,251 6,284,902 43,214,895 Total $316,385,234 $47,593,396 $10,872,469 $353,106,161 See accompanying independent auditors' report. - 124 - COiTN'I'Y OF I~IA~VAII General Fixed Assets Account Group Schedule of General Fixed Assets by Function and Activity June 30, 2001 Buildings Machinery and and Land Structures ui ment Total General government: General government buildings $ 2,781,575 $ 9,061,177 $ $ 11,842,752 Mayor's office ~ w 128,781 128,781 County clerk 594,553 594,553 Data processing - 473,538 473,538 Finance - 2,775,541 2,775,541 Corgsoration Counsel 177,201 177,201 prosecuting: attorney 1,195,682 1,195,682 planning 363,005 363,005 Personnel services - 104,219 104,219 Research and development - 75,499 75,499 Mass transit 4,444,503 4,444,503 public works - - 2,925,430 2,925,430 Total general government 2,781,575 9,061,177 13,257,952 25,100,704 Public safety: public safety buildings 1,902,047 21,126,716 23,028,763 Police 7,400,428 7,400,428 Fire 13,483,444 13,483,444 Liquor 151,052 151,052 Civil defense 467,160 467,160 Total public safety 1,902,047 21,126,716 21,502,084 44,530,847 Highways and streets 1,917,900 2,197,771 7,648,939 11,764,610 Sanitation 608,058 138,930,145 7,912,630 147,450,833 health, education and welfare 122,575 406,730 68,399 597,704 Culture and recreation 10,044,138 51,956,194 5,141,562 67,141,894 Educational facilities 26,001 8,473,515 8,499,516 Housing and cornnaunity development 1,439,105 3,109,803 256,250 4,805,158 Total general fixed assets allocated to functions and activities $18,841,399 $235,262,051 $55,787,816 309,891,266 Construction in progress 43,214,895 Total general fixed assets $353,106,161 See accompanying independent auditors' report. - 125 - This page intentionally left blank. - 126 - ~~~~s~, s~~o~ (~i1~~LTI~IID) _ Chart 1 COt~TTY OF HAWAII General Governmental laevenues and Expenditures Comparison Last fien Fiscal Years (In 'T'housands) $ ~ 80,000 $160,000 ~ Revenues ~ Expenditures I ~ ~ ~ ~ ~ ` ~ ~ ` ` ` ~ ~ ; ` $140,000 ~ ~ ~ ` ~ _ ~ ~ ~ ~ ` ` ~ ` ` ~ ` ~ ~ ` ~ ` ` ~ ` . ~ ` ~ ~ ~ ~ ~ \ ` ~ $120,000 ~ ~ . ~ ~ ~ ; ~ ~ ~ ~ ~ ~ ` ~ ~ ~ ? ? ~ ? \ ` $100,000 ~ ti ` ~ ~ ` ~ ` ~ ~ ~ ; ~ ~ ti ~ ? ` $80,000 ` ~ ~ ~ ` ` ~ ` ~ ~ ` ~ ~ ~ , ~ ~ ~ ~ $60,000 ` ~ ` ` ~ ` . ` $40,000 ` ~ ` ~ ~ ` ~ ` ~ ~ ` ~ - ~ $20,000 ~ ` ~ ~ ~ ~ ~ ~ ` ~ g`t• g`~ gA gh g6 g'1 g~ gg g0 ~ ~gg'~" ~gg`l: ~gg9' ~ggA' ~gg5' ,gg6' ~gg'1' ~ggg• ~ggg- ~OOpA - 127 - O ~ ~ e+i N N ~ O ONO ~ ~ O ~ O~ OO N ~ tr1 h O of ~ CI ~ e+'f ~ O~ O M 00 ~O ~D Vi b9 N h O~ e•1 eT v~ ~ N ~ ~ y h v1 V1 h N 60 N ~ ~ ~ h ~D ~ 04 N et ~D o0 61 ~ 6~ O N N~ N e~ ~ ~ ~ h A N ~ O~ N 00 N M1 O h h ~ ~D ~O ri 00 O ~ O~ ~ y t~ O ~t h ~ OO ofl a~+ ~ g/1 ~ ~ ~ ~ t V 00 00 M O y N M h O~ h ~ ~~P1 O N CP ~ ~ ~ O 'aY tp QO [ ~ ~ VD ~ t ~ ~o ~ ~~~~~MNM ~ 'a ~ ~ ~ t7 ~O V1 ~ ~1 O~ ~ O O N ®O N O~ ~ 00 ~ h ~ ~ O~ M O ~ M N O h ~O ~O Q ~ C ~ .m ~ ~ ~ O ~ ~ ~ ~ v-i ri ~ ~ ~ ~ .r B °`R ~ ~ ~ ~ ~ ~ ~ ~ ~ O N ~ N O~~~~ O N N O~0 ~ ~ ~ ~ ~ ~ h O ~ ~ ® ~ Qa M L!1 O V ~.-e ~ ~ ~ ~ ~ a+ $A R ~ ~ O~ ~ Y1 h h N h ~O > O a h h ~n oo eo h oo ~ ate.. ~ ~O C~ CT O ~ N~ ~ N M ~ ~ ~ ~ C/1 U ~ T P°1 V1 V'1 h t'~ 60 ~D 00 ~ m h N h~ M 00 N~ O~ ~ 3 ~I eo e~ c~ o cv v; ~c o o;, ~ ~ ~;~o~,~~om~oo~~ cn ~ ~ ~ ~ ~ _ a~ U W ~ O I M P+1 ~O ® C1 M ~ ~ ~ P+1 ~G IDO O ® ~4 Y1 ~C OC O~ ~ ~ ~ 4A V1 V'f V1 V1 h Vl ~1 ~ t0 ~U h OD oft 00 ~ DO N t~ N f+1 ~ a`i jI N ~ ~ ~ N ~ ~n ~ ~ O ~ ~ G ~ ~ h ®0 00 O~ O O = N ~ ~ ~ - N N N N ~ C N v y y O~ O~ O~ Q~ O~ O~ ~ O~ O O ~ ~ O~ O~ GT Q+ O~ O~ O~ C~ N O a I20 _ _ _ Chart 2 COUNTY OF ~iAWAII General Governrroental Expenditures by Function Last Ten Fiscal Years (In Thousands) $180,000 ~ Other ~ ®ebt service i ~ ®Capital outlay ~ Pensions and retirement ~Cuiture and recreation ' $160,000 ~ Sanitation ~t•iighuvays and streets f / ` Public safety ; ` ~ General government $'140,000 , / / $120,000 i / / \ - $100,000 f 4h. $80.000 't: :y, g:.. $60,000 $40.000 k ?::y y~r . :iL X44. ` f,/ \ \ v ~ //,r% ~ r $60,000 C\.; $Q , i i! i I i I 9`L gg 9p, 9~ 96 91 90 99 p0 1991- 1992 1993 1ggR- 1995 1goJo' 1991 1990' 1999' 2~p0 - 129 - Table 2 COUNTY OF HAWAII General Governmental Revenues by Source* Last Ten Fiscal Years (Values in Thousands) Licenses Charges Interest Fiscal Taxes and and Inter- for and Year Assessments Permits Governmental Services Penalties Other Total 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 2,500 156,471 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 2001 95,467 7,412 39,489 12,056 6,409 1,854 162,687 • Includes General, Special Revenue and i)ebt Service Funds. - 130 - Chart 3 COUNTY OF HAWAII General Governmental Revenues ~~r Source Last Ten Fiscal Years (In Thousands) $180,000 ~ Other Interest and penalties Charges for services f ®lntergovemmenta! $160,000 Licenses and perrr?its ~ Taxes _ . st $140,000 • $120,000 $100,000 f ~ a aaa a~ '2: a °a~ as Ora ° a a~ $80,000 fii. ~ a as f ~a aaa°. °a~~°aw i a~ aaaaa f: aaa°ea °o-a Ry ~a aaa as - aa~aaaay aaaa{. ~q~ao- aaa'ra y~ a o Caai _ $60,000 aa~ aa~~ ay~~ afy~~, a aaa a~a d'b~a Jy ,a a4a a~°a ya~y,. ~ae~ a ~6ya aiY'4k,. a; ; as ~aa ~aa at aa~ k aaa 6°a~a yy~a aaa _ i..s,.~; Q a~~ $40,000 ~ atita _ fa. i ~ a 4 j aaah . $ f • ~ i i,=x ado- ~ 3~. . FAA.A. ' :t ~d .a~. a~~x t - - ~ a~ _ aaa -4i- i a $20,000 a ~.J.. } tea. 4 i- aa~~ ~ - _ a a' ~a 1ga102 ~992g~ 1go'39R ,~99~' 199y 96 ,~g06 0~ ,~g9~ 9a X9°009 1gggA0 .LpOOA~ - 131 - Table 2a COtTNTY OF HAWAII ~ener~l CBoverntnentatl Tax Revenues by Source* Last Ten Fiscal Years (Values in Thousands) Real Fiscal Property Fuel Franchise Year Tax Tax Tax Total 1992 567,922 $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 2001 84,240 6,450 4,777 95,467 " Includes General, Special Revenue and Debt Service Funds. - 132 - G O y O y Vi O O O O O O O O O O ~ c00 C 4+ ~ ~ V1 O t~ ~ ~ :.R ~ N R ~ ~U ~ e~ ai c~. U~ fi C N ~ O~ O~ 0~0 ~ ~ C? H Gw h ~ M O~ i^ DD 00 M ~ ~ ~ e~1 N N M N O~ M L7 ~ C tC ~ h O ~ 6~0 O ~ ~ ~ ~ R La ~ O y ~ o e o e e e o 0 0 0 O ~ a, ~ 6~vi U ~ ~ ~ ~ O ® A O O rr; a°"a ~I ~ ~~~i ~ N ~ V'1 ePl Cf' '°t \O ~ ~ ~ OO xme ~ Q ~ M O \9 K1 00 ~ M .Y~e! ~ X H O ~ ~ N O e+1 O ~ ~ N O~ vN1 ~ y OI O~ a\ N ~ ~ ~ of ~ V ~ ~ 60 O~ O~ oC ~ 00 eD OD is ~ m y y O t+ N 9..~ ~O en d, ~ ~ N C v~ O~ ~r'i ~n N ~ O~ oc ® 6x. ~ OI ~ ~D ~D O v1 f ~ ~ ~O ~n ~ y ~ cX0 U eP' N C~ ~ N ~ _ ~ ~ r 'gp0~ ~ ~I O O 00 eQ Pr1 Cal M h ~i ~N~~~~~~;~M ~~V~ OD o o e o e o 0 0 0 0 V ~ ~ ~ N 00 ~D v1 ~O I~ l~ ~ U =I ~ °O o o ~ o ego ~ ~ ~ = O, O t~ QD O~ ~G ~ ®4 M ~ M 6C ~ O w', ~O M t~ ~D ~ F^ dI ~ Q` M O ~ d~/1 C ~ N U of v-, ~o ~n vi r ~ a` O ~ n oo ®c o0 00 0o r o0 00 M 00 ~ h O M M oD M cwt O ~ OD ~O M ~ O ~ X t ~ 6! ® ~ O O~ ~D ~ O V' ~ M ~ ~ ~O ~ V1 M I w h O l~ M !O ~ 1`~ Pry t~ e+i ~ ~ h N N M ~G 00 O~ ~ Q\ 9G 90 ~ 00 QG s. y ~ QMi ~ O` ~ P O~ ~ O O O~ ~ O+ Q~ O~ CT O~ O~ O O ~ ~°i N N -133- Table 4 COUNTY OF Ht~WAII Assessed and Estimated Actual Value of `taxable Real Property Last Ten Fiscal Years (Values in Thousands) Ratio of Real Property Total Assessed to Fiscal Assessed Estimated Total Estimated Year Value Actual Value Actual Value 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 9,882,111 9,882,111 100% 2001 10,083,384 10,083,384 100% Notes: There is no personal property tax in Hawaii. Assessment ratios are uniform statewide. - 134 - ~ O N 00 00 M l~ 00 M N N N 00 \G O\ ~O ~ OO ~ a~ ~ vi t~ O ~ ~O on v~ ~t° N O ~ N oo ~n ~C vi N O ,Q G ~ OD 'E4' O ~ N O ~D I~ i? ~ 'eP OD ~ 00 00 N O ~ M N ~O I~ O 90 M ~D 00 M ~9 ~D ~D QO ~ ~ 'a0 O ~ ~ ~ ~ f~ M h ~ M 00 N Q~ lD ~O O ~D N h M O N ~ M N O V N 00 ~ M eP1 M V1 O V1 M N N M N ~ ~ O ® 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O ~ O O O O O O C v'i 0 0 0 0 0 0 0 0 c~9 $9 CC O O O O O O O IIO 0® 0 0 0 0 0 l'+ ~ f" N O t1 90 ~ QS' M N Zt M C~ O v1 M ~ m w1 ~ Seal ~j M O ~1 vt iD N O N ~'1 a/1 \O ® Q7 O\ CO 'JA ~O ~O O tC h ~ ~ N ~ 90 N en ~ v1 A6 1~ N O h ~ GC O\ ~O ~ ~ ~ ~ ~D O N ~ h O t~ 99 N es O+ 00 M ~9 M ~ ~ M oA ~ N e~1 ~ N ~ M ~A N t N ~ ~ ~ _ _ 8~ > ~ 60'i ~ ~ 5e3 ~ Ga3 s--< ~ b..~ ,m R3 ~ ~ O tt~~ ~ _ ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 awe ~ ~ ~ ~ ~ fd3 OC ®C 6G 9P3 BO 00 6Q 90 ~ 00 00 00 00 00 00 x ti, ~ ~ ~ ~ ~ ~ ~ ~ ~ _ p°y ~ OD O iA ® O~ Q~ Cf" 00 6~ M OQ ~D V1 V'1 M 00 ~ k.. N ~O a~ O 6o M ~ O on v~ eS° ~O oo ~O ~ M C, ~ O cet ~ O ~ 6 ~ N ~ ~ 1~ ~n I ~ M w1 O ^ ~O 'eP N O M ~ ~O M N ~O ~ t~ O ~ CC 00 N N O~ O \O M ~ ~ et ~ ~ E°` '9 P~ ~ ~ N ~ h O wi O V'1 M an t a z R ~ ~ ~ ~ ~ `c s~~ ~ ~ ~ ai C ~ a"i ~ 4~a eo O ~ aw'i C G~i ~ 6i C H ~ AG y ~ id io ~ d ~ id R ~ ~ y O a: ~ ~ ,ea ~ ~ ~ y O a> ~ ,i0 ~ ~ ~ ai O ~ ~ ~ v a~ O ~ ~ vii ~ ~ as ~ ~~~~U~QC) ~~7B~U~BU ~ ~ c °~s M ~ y ~ ~ ~ G ~ G U -135- ~ M N 00 O~ ®D OG ~ h ~ 00 Vl Ci' Vl Vl O~ O~ N N N N M ~ 00 h h A- h ~ ~ O N h N~ ~O M h M G h 00 N M N~ D\ ~ M ~ N h T h 00 ~ ~ ~a h ~ N M aP) N N ~ 90 M ~ C^ ~ O N ~ h 00 00 O it M V'~ CO N N M N1 V'~ ~ ~ ~ h 00 Cr ~D O ~ ari N O h M ~ M 00 V1 ~O N 00 M O~ ~D ~G 60 ~ ~ v'i F° ~ ~ ~ N th N h er an et' M ~O M M Q O O~ h ~ O ~ O O ~ h N O O~ ~ a~ h O ~C M P M V'^ OD ®O 'e4' ~P'1 C~ h M f`r M f ~ ~D 00 ~ ~ 00 I~ h M -'.SO ~D > ~ ~ fr5 N O ~ ~ N O 6A N O d9 69 ~ ~ O 0OOOOOOa v, o000oooo~n o000ooooon v,oo®~oc~® ~ v~oooooao~• ~nooooooo~; c~a~:d~i ®o~o~a®o® ~ ac r:;c>csooccer ooo®c®~oo~ ~ ~ ~ ~ ® O V1 ~D ~P1 h h CO Y1 ~D M O Y1 M O h 00 ~ O 00 O ~ 4. ~ ~ ~ O~ O Y1 00 ~O ~ h h !O N h M ~ M h N !O O~ V1 ~ h 00 O~ M st O ~ M ,'+C ~ O h M 6C N h ~ P°° ~ ~ 00 1/'~ ~O ~ O P7 N ~ O 00 h h 6'O Y1 h ~ w1 N ~ ~ O t~ ~ ~ OC a..~ ~ ® ti O N CO h v1 M n trC 09 ~ ~D ~ O~ N ~/1 00 h ~O ~D eP1 O ~D O M d h N 00 ~1 ~ ~ N1 N ~ O a O\ ®1` Cfi '+°a h M M1 O Q` O~ h O\ ~ ~1 ~ tf7 ~O M M O~ \O ~1 ~ M N ~ N 9 ~ ~ M h M N O N d~ t~ fd4 N ~ b4 N ~ ~ LR N .n+ rag ~ ~ O ~e 00000000 v~ 0000oOOO~n o0000000~0, an v~ on ~n ~n v~ an wti en .n ~n en v~ vi v-, en ~n v~ v~ vi v, an w, v, ~ ~g oo ao 00 ®o 00 ®c oo ~ ~ me ~ oc o® o0 00 ~ oo ~ oc ®o 00 00 0o na Ao 0o et' .E x ~ ~ ~ ~ ~ h N oC 00 ,.ti M M ~ O O ~P O~ ~ N_ O+ tt OO O~ M N V'1 ~A O CO O+ ~O O~ O aC ~D N ~/'1 00 OQ ~ h h Q.°r M O 00 O v1 h 00 Ct N M Q'i' ® O 00 M O ~ ~ M ~@ O K^ l ~ 00 M ~ ~ 00 O~ N [ ~ M ~ ~O ~D V1 ~G QO M oF1 00 M ~ l~ V1 ~P O ~ ~ ~g ~O ~ h 00 ~ 90 00 h O+ V1 V'~ tT O l~ G0 60 N o/1 O M O ® M n ~ ~ ~O N d1 M M N T°n -h ~O N 00 00 ~P1 O~ ~D ~ h h a0 M M 60 PT O~ M N ~ 'E ~o o ~o M ~a on ~ v~ ~ M ~ ~c O ~c O, ~ M ~ .c h ~ ~ _ ~ aCi 4.. ~ •e ~ ~ ~ N ~ Ls ~ H ~ ~ C y a~ ~ v c H U~. ~ ~ s~ ie ia.o d AG a~i,~~ ed ia.E i ~ ~,,,ARis ~•o ~ ~ ~ ~ ~ ~ ~t ~ ~ p y ~ ~ ~ is ~ ~ p y ~ ~ is ~ io O ~ ~ ~ E H v ~ aoi O O' ~ ~ E y v ~ a0i O S~. ~ Rt ~ y v ~ a~ ~ ea m E ~ 'C E s`s. ce`~°,~' E ~ c E Via. •E ~ E = E ~~~~U~eU ~ ~~B~U~~U~ ~~Q~CJ ~BU~ x a~ c eo 6- ~ ~a o~ ~ ~ ~ ~ ~ 0 U - 136 - v' O~ cf O N_ N I~ ~D ~ O V'~ M O~ O ~O 00 eY t+ M ~ ~ ~ r O ~ ~ M ~ P•1 ~ ~ N ~ O ~ n oQ ~ 00 O t~ h ~O a+1 ct M O O RP N ~O C ~ v'~ N ~ h eP ~j C ~ N ~ 'Cr O~ 90 M N ~ ~ N ~O M M 00 t~ v1 O ~D O~ cC N O~ r.9w ¢0 eo7 Q' ~C e~1 ~ 8D h O+ e9' t~ f^~ ~'P~ ~D O\ 'V O 00 O N_ ~O Q~ ~D ~G ~ t~ O~ N o0 O ~ ®O t0 O~ F^ ~ ~ ® M M cry Q~ e9' OD n D\ +et t~ O~ N ~ ~ oo M O~ N ~ 09 6~ N M O ~ ~ CDO N p„ 00 M N o0 t~ e+~ h N O^ N f^ M N Q~ 40 M M N O~ ~O N N O o0 M A N O ~ ~ ~ ~ N O ~ N N O ~ ~ N N ~ ~ 66i 69 N O ~o 00000ooo~n o000oooo~n oooooOOOon anr,~oaoooaer v,ooooooo~ v,oooo0700~; ~~cs~ oooi©o©ooo~r cooo®cooo~ ooo®aoQOO~ ~ ~ ~O ®4 O O N 1!1 ~ ~ V'f t°1 e/1 t~ 00 t~ N oO c'•1 0!1 O~ O O N O t~ ~ ~ O ~4 l~ G pp w1 fS. ~f ci1 00 N ~ ~O O ~/1 O ~D ~ N O O~ O N O~ 0/1 ~ t-- O N PT M ~ N t~ ~ ~ eI'~ ~C c•1 P°5 [ ~ 60 ~ N N c<'' N t~ O~ O~ O~ ~ h ~ en O~ ~ afl ~ p~ ~ ~ oI'1 ~ t'~1 M ~C O N ~ Yt' ~ N N 1~ O~ 00 ~ O~ N Y1 - I~ t O ~ ~ e~~ N 90 ~ ~ O ~O 7'- N AC O~ fX: ~O O~ O N l~ N M l~ ~G CO C~ ~ O O~ l~ ~A v) ~ 7 eft tp1 ~ M N 00 N C O O N M ZY M N~ N~ AO ~ N M ~P M N tY N J~ ~ as ~ ,a col ~ ~ ~ {sp ~ ~ ffi ~ ~ O 0 0 0 0 0 0 0 0 v1 0 0 0 0 0 0 0 0 ~n 0 0 0 0 0 0 0 0 v's V'l c/Y tF1 V7 W1 Y1 Y1 aP1 ~ ~ oP'1 YI Yl ery Vl V'1 v1 ~ V1 Y1 ~ V'1 h V1 aP1 to CS ~ (ig o0 ~ 00 00 60 00 00 00 ~ d0 ®O 00 ®C 00 OC 60 AD E1' a4 ~ 00 430 OC 4a4 OG ®G ~ ~ ~ ~ O N d\ r CO O ~ I~ O ~C ~ r1 N ~O M - N ~ O~ N t~ to1 O ~ M C~ ~D ~ ~ r t0 00 v1 ~ N N M M O~ M t~ e~'1 ~ ~D O~ N M ~ O ~O ~O oo ~F ^ O ~ X ~4 ~ M N ~ N 1 ~ 00 ~ 1~ s4 O^ O r^ ~D O Q'V t 60 O~ ~ N ®4 v1 to ~ ~ co aQ cn ~ 'p O~ ET ~ ~ ~ N ~ O N N ~'Ot 60 t~ ~D 00 Ct D\ `O O 1~ O O ~O ~ O h ~ O N t~ tI'~ 00 OD O N M O N M O~ ~ 00 ~ Z7 N ~ a- 40 O~ ~ ¢Y C~ iC c0 ~ ~ N ~ 'C ~ C T H 61 O ~ C ai ~ ~ d O ~ C h ~ C ` a~ d C ~ ~ ~ C 4., CJ ~ ~ ~ e~ id a~ ~ a~ ~ ie is acs ~ a~ ~ i~ io ~ y C a> ~ td ~ ~ a~ o N c R ~ + y O a~ c ~b. tcf .r ~ i^... ~ _ d > R v ~ ~ aoi G sa, E ca ~ ~ v ~ y c o. ~ ~ v ~ v R a o o ono o c o o °o o'°~ o o c ra, o o ono ~ c 7 y Q` ~ ~ Ste, '7^ O U - 137 - ~ ~O ~A 00 flG M ® h O 00 h h N O~ N O~ O N eh ~ ~D ®0 !g 9D h M o/'~ M n ~o 0 0 00 ~ ~n h o 00 ~ ~ ~ ~ h ~ cP^ of O ~ M O^ V'1 a-+ 80 ~ i7 N N h +°4 ~ O M ~ N ~ e~5 N ~ ~ eY O N N O~ N ~ 6 O to N to N 44 ~ 00 P+) Q9 N LO ~O OG O .!1 M O O Q, w1 00 ~ N ~"1 M O N O 60 h N~~~~ N O O > ~ ~ 4I4 ~ N N ~ 69 ~ N N O ~ ~ ~ O O O O O O O O O h 0 0 0 0 0 0 0 0 v1 O O O O O G O~ an 0 0 0 0 0 0 0 ~ b43 ~ te> 0 0 0 0 0®~ 90 0 0 0 0 0 0 0 ~ ~a ~ h r~ ~o ~ o, o~ ~fi h o o, ~ o0 0~ o~ o en ~ ~ o e^ 4--. h ao'1 O~ ~ h O~ N~~ N O O~ N O h N N N N C ~ 'Cf as'~ e+5 Q ~ O V~ ~ 9C C~ ! ~ t~ V'1 ~ ~D ~ Ci O~ Q ~ V1 ~ ~ ~ O an G CT ®t h ~ r+1 h ePi er N gQ m O O~ O N ~ t6 ~ N SFi O v1 h iPl CO Y1 h M O f~ ~ O ~ F" ~ O~ tV of ~ N ~ N ® ~ ~ N ~ ~n 'V N 'cf N O an N ~ ,.R vw o/} 69 ac ,.w Vj ~e9 b9 v~ O 0 0 0 0 0 0 0 Q aI~ 0 0 0 0 0 0 0 0 v1 ar1 v1 cn er1 v'~ ar1 vl on ei: h an V'1 aP1 V1 ~ V1 ~ ~ t~Og 00 90 0® Ap 4Q ®O ~ 9@ eY 00 00 09 ®O 00 OO 00 00 R ~ ~[j 5A ~ ~ ~ ~ N N ~ v'1 ~ ~O O O N ~ ~ ~O M O~ h art ~p N y C ~ 00 t+1 N 9E N h O ~ ~ ~ h 1p h ~ e4 M M ~ 00 Sp ~ tS ~ N ~ O~ ~ O 90 e+1 ~ va e`n o-+ 001 h Y1 00 !p N 4P1 4f 00 ~ ~ N V1 N CO O~ h ® ~ e0 ~D oO ri ~ e0 e+i ~ ~ O > ~ 96 N O~ N h h~ eD eD h N N N ®G O +a O o0 ~ ~ ~ a~ an ~ ,m ~o o~ ~ ~ a~ ~o ~ ~ n ~ ~ ~ ~ ~ ~ E o c c ~ _ ~ ` H r 4a G 'CJ ~ ~ ~ ai ~ a"i ~ y v ai C vi o CJ sa. ~ s; ~ ~ ~ ~ ~ v a, ~ io is a O ~ ~ o H ~ o o ~ ~ N N O - 138 - Chart 4 COUNTY OF HAWAII Assessed Value of heal Proper~~ Last Ten Years (In Thousands) $12,0oo,ooa C~ Land j buildings $10,000,000 $8,000,000 a $6,000,000 S - $4,000,000 t t t { S > t ~ y t S S ( t [ j{FF i ~ C ; c 2 ~f ~ $Z,~~~,000 t i ~ ; t S i S l ~ k i ~ t i y t k i ! f i ! s 2 c i ! 3 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 - 139 - o °o a° Q Q Q Q Q B¢ Q Q ~ ono o a~ c 0 U ~ ~ M O~ M h 00 r N ~7+ no r ~o N r O v, N r'~ ~n .O.JI h O ~ oD O N ~ e0 cn ~ ~ ~ O ~ ~ ~ O *Q ~ O~+ ~ ~ ~f M t+1 s.F v... pe ,m ~ N V >I ~ 6i 9 ~ S ~ ~i YNi 00 M ~ O N ~ O V1 ~ y ti O O o0 Q ®0 r O~ ~D ~ o' r, N ,e` ~ r, ~ .3 ~ ~ o o o a'' ~ ® ~ O ri ~p oe o~ ri in ~D ~ ~ ~ ~ y ~ v~ o w h ~ ~ r o C~ ~ ~ ? ~ n ~ m ~ ~ ~ ° ~ h ~ ~ ~ ~ ~ ~ >R c u m ~ ~ ~ C ~ °vd v 'v ~I is ~ ~ ~ ~i ° > ~ y ~ y~„1 ~ O N~ r O N O~ N H ~°°d ~ p ~ v1 V1 v1 rP1 M M N M v~ ~ 4 y U O ~ ~ ~ ~ ~ ~ ~ ~ ~ r ~ y ~ I OO Q~ r r O~ © oo ~O M o0 N h t C® CO ~ O^ ~ M N dtf N eri ~ ~ 00 N h tP1 O ~ O' ~ N N N N N en r'^ ~ ¢ci ® ® o R ~ y ~ ~O N N O~ r 0 0 00 O+ M C eNP1 ~ N r rNi eMn ~ ~ N 'y Q ~ N O~ 4'P1 r r ~ oo ~ ~ ~ r o v~ ~ ~ h o+ o. O ~n E~ N N ~ ~ O^ ~ ~G c°1 N N ~ O ~ ~ ~ ~ r o0 00 00 ®0 90 00 00 00 ~ ~ ~ O ~ R U ~e N ~ N N N O~ r O h oD ~ v ~ N ~C O V7 N O h Vl O~ ~ a.. p^ O p^ ,m N M ~ N ~ ~ ~O a.i ~ O O', cn O~ M r~ N vi O ~ ~ ~I r O ~ ~ n h m ~ ~ O ~ ~ eyC 0} N M `9' Pmt M P°'1 M M ~°1 ~ ~ ~ ~ s~ O ~ ~i ~ N M ~ Vl ~ r o0 O~ O ~ ~I ~ ~ ~ O~ O~ O~ O~ Q+ O~ O p ~ O~ 6~ O~ O~ Q~ ~ O~ T O~ t0 O • 1~5 Table 7 COUNTY OF HAWAII Coaaaptat~tion of Leal Debt 10~I~rgin June 30, 2001 Total assessed value $10,083,383,652 Limitation as set by the Constitution of the State of Hawaii (A) 1,512,507,548 Amount of debt applicable to debt limit: (B) County general obligation bonds $141,235,300 State Revolving Fund loans 34,394,028 Other debt 1,117,954 176,747,282 Less: Bonds maturing in current fiscal year 8,370,900 SRF loan principal maturing in current fiscal year 1,970,262 Bonds reimbursable by DVVS 9,769,900 20,111,062 Total amount of debt applicable to debt limit 156,636,220 Legal debt margin $1,355,871,328 (A) The bonded debt limitation 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 benefEted 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 - 00 ~ ~ a ~i o0 0~ ~n ~ rr v, ~ o ~ Q ~ ~ ~ U~ ~ o ~ ~ ~ ~ ~ ~ ® ~ a~ y ~ _ y~ ~ ~oy~ ' s gasp ~ 6.1 y ~ O O O O O O O O O O O ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ b~+, O m b N N O O ~ °c4 ~ ~ ~O ~O L.~ 67 ~ ~ ~ O 'i7 ~ ~ Q„ ~ ~ C cO.i ae y 41 ~ eo ~ o~ N~ o o ~ ~ O M I~ C, t~ N O Q~ N O O ~ O~ ~ M t~ t~ M N ®t N d0 ~ y ' 3 ~I e+i ~ 00 v'~ N ~P ~ c+i vD ~ > ~ ~ ~ O N ~ M N O ~ ~ ~ ~ ~ R7 ~ O~ O O M~ MMi N t h U ~ O ~ = C g; O ~ c~ ~ [E y y y i ~ ~ ~ ~ i ~ ~ ~ ~ ~ i0 ~ y N S~ y ~ ~ i ~ i ~ ~ ~ i OQ Q as 4-? U u c y~ ~ ~ H ~ ~ a~i ~ ~ ~ ~ ~ ~ e o " ~ ~ ryas ~ c~ ofl n o ~ N ~ o o C ~ O C~ f~ O~ l~ t~ N O O~ N C] y 4d in ~ y C.) O~ ~ M l ~ t~ t~ t~ N N ~ 04 Op ~ p ~ M ~ 90 ~!1 N ~ - r+1 ~D ~O ~ Q V O d N U, ~ N O ~ ~ ~p t~ ~ ~ ~ ~ ~ O N o0 ~D ~D ~ M 9t N ~O as cC ~ ~ ~ O O M ~ ~ ~ ~ v'~ ~ ~ G ~ ~ ~ ~ [!a O a~ ~ g- ~ N CO O N N >w M U ~o O 67 y N M M ~ 4P1 N Ow ~ M Mme. d O ~ ~ H ~ ri d N a~ O~ ~D O~ N M ca g,5 ~I N N - l~ Y. N 00 00 ~ O U 'O Q ~i r°'^ N 90 ~G ~D N O~ OO O O ~ t~ O~ O O 0 0 0 O~ O~ O y ~ ~ ~ O > to p e~ ~ ~ eo O n~~ e+i N et t•f ~ n@ ~ y y C 'o-. N N v1 Q~ QO c~1 ~O ~ y ~ ~ ~ ~ ~D 00 O~ M N 00 ~ , t~°C ~ _ g~ M ~ ® ~ ~ ~ ~ ~ ~ ~ y 7 O 'p" vyi V v ~n°, d sa y ~ ~ ~ ~ ~ ~ ~ ~ o o Q ~ U ~ o~ o~ a~ o, o~ o~ o~. o~ N o - 142 - Table 9 COUNTY OF HAWAII TZatio of Annual Debt Service Expenditures For General ®bligation T3onded Debt 'I`o `T`otal General Governmental Expenditures Last Ten Fiscal Years Ratio of Debt Total Total Service to General Fiscal Debt General Govea~ental Year Principal Interest Service Expenditures Exgpenditures 1992 $3,026,000 $6,137,804 $9,163,804 $115,070,212 8.0% 1993 3,992,000 5,936,363 9,928,363 123,140,556 8.1% 1994 4,923,187 6,459,361 11,382,548 134,984,061 8.4% 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 8.1% 1997 5,984,439 7,597,939 13,582,378 153,420,338 8.9% 1998 6,422,996 7,724,699 14,147,695 158,376,171 8.9% 1999 7,793,319 7,481,465 15,274,784 156,703,788 9.7% 2000 8,688,267 7,693,992 16,382,259 156,081,429 10.5% 2001 8,903,342 8,259,317 17,162,659 165,470,877 10.4% - 143 - _ _ Table 10 COUNTY OF HAWAII IDe~®gr~plaic Statistics Last Ten Fiscal Years Fiscal Per Capita School Unemployment Year Po un lation Income Enrollment Rate A 1991 127,350 $16,642 27,834 4.5% 1992 131,272 16,948 28,587 8.1% 1993 134,191 17,284 29,433 7.5% 1994 136,284 17,710 30,164 10.8% 1995 138,537 18,521 28,188** 10.2% 1996 139,726 18,842 30,497** 9.9% 1997 141,848 18,970 30,599 10.2% 1998 143,135 19,712 30,715 9.6% 1999 142,390 20,340 30,926 8.7% 2000 148,677 * N/A 30,193 6.7% (A) Calendar year. Sources: * 2000 Census (all other population figures as estimated by State Department of Planning and Economic Development). Public school enrollment only. Other data from County Depargrnent of Research and Development. - 144 - . o° o° Q Q B Q Q Q Q Q Q ~ r., E~ ~ ~ ~ ~ ~ ~ Z ~ :G ~ o °0 a~ 0 ~ M O~ M ar) 00 h N J oo h ~D N h O an N M an ar) O a,p O9 O N ~D 00 M aD ~ ~i ~ ® ~ ~ ~ O ~ eP ~ ~ O ~ M M s-e ~ ~ R. N U a+a `~j ~ ~ arj ~ M a,p O N ~ O art m y ~ O ~ CO O ~ 00 h O~ ~D ~ ~ L ~ ~ ~ C c.," O C ~ c«° V I M 00 00 ~ ar1 O O art ~ o ~ ~ ~ U O ~ ~ aP j O ~ aA V~'1~ O~ r \ O ~ ~ ~ O 90 ~ ~O ~ O ~O Q+ O U ~ ~ sf an h as ~O h ~ M ~ ar1 ~ m ~ ~ O ~ !°b' ~ ~I R > ~ y ~ ~I O N ~ O N O N y ~ ~J ~ ~ U OI Y1 Vl 'Cfi V'1 M M M N P'~'1 O y~"J' pq tG0 eo C ~ a ~ ~ ~ _ y y o0'O ~ h H C O OHO ~ M ~ ~ ai R3I N art 00 00 'O~ O^ ~G M N 6) o-''G! N M ~ ~ 00 N art !r an O t~ ~ h h M 00 00 M art r y O O ~ N N ,n. O C G? O ~ OD 6! ~3. O 'ram E ~ O y ~I ~D N N O~ h O O 00 O^ M C ~ 1 N O art N N M oo ~9' O~ O y ~ '~I are N i ~ M 'R a/'~ 'eT t ~ N :i_n ~ '®1 n O aMry ~ h ary ~ O~ O aOrt ~ ~ y N N n 00 O~ 00 ~ M N N ® O C ~ aU ar) h ~ 00 i~ 00 OC 00 00 00 X a~ ~ Stu, afi c0 y A O ~ ~ ~ N ~O N N N O~ e~ O an o0 ~ N ~ * N m O ar'~ N O art an O~ ~ .v. C1 ~ ~ ~ N M ~ N ~ ~ C dl ^ ® ~ h O M eM0 ~ O ~ ~ u h O~ h an ~O ~G 00 O ~ v a- O~ N M cr M1 M M M M M ~ R ~ U ~ ~ C ® l0 ~ N M ~ ar'a a,p h 00 O~ O ` G~ O~ O~ O~ T O~ Q+ O~ O~ O ~ O~ O~ O~ T O~ O~ ~ O+ O~ O C - 145 - Table 12 COL~TTY OF I-iAVVAII Miscellaneous Statistical Data June 30, 2001 Date first charter adopted June 1968 Form of government Mayor/Council Area in square miles 4,038 Miles of streets (County only) 902 Number of street lights 9,684 Fire protection: Number of stations 19 Number of fire fighters and officers (exclusive of volunteer fire fighters) 266 Police protection: Number of stations 8 Number of substations 4 Number of police officers 390 County water service: Number of consumers 35,726 Average consumption in gallons per day 23,770,427 Miles of water lines 1,858 Miles of sanitary sewers (County only) 53 Number of building permits issued: building permits 3,233 Electrical permits 3,020 Plumbing permits 2,676 Sign permits 67 Recreation and culture: Number of parks 118 Number of gyms and recreation centers 38 - 146 - _ _