HomeMy WebLinkAbout2023-COH - Annual Comprehensive Financial ReportANNUAL COMPREHENSIVE
FINANCIAL REPORT
Fiscal Year Ended June 30, 2023
COUNTY OF HAW Al l
Hilo, Hawaii
Mitchell Roth
Mayor
Deanna Sako
Managing Director
Prepared by
The Department of Finance
Diane Nakagawa
Director of Finance
COUNTY OF HAWAII
Annual Comprehensive Financial Repon
For the Fiscal Year Ended June 30, 2023
~lter ofTransmittal
GFOA Certificate ofAchievement
Organization Chan
List ofElected Officials
List ofPrincipal Officials
Repon of Independent Auditors
Table of Contents
INTRODUCTORY SECTION
I
8
9
10
11
FINANCIAL SECTION
13
Managemenrs Discussion and Analysis 16
Basic Financial Statements:
Government-wide Financial S1atements:
Statement ofNet Position 28
Statement ofActivities 30
Fund Financial Statements:
Balance Sheet · Governmental Funds 32
Reconciliation ofthe Governmental Funds Balance Sheet to the
Statement ofRevenues, Expenditures, and Changes in Fund Balances •
Reconciliation of the Change in Fund Balances ofGovernmental
Statement of Revenues. Expenditures, and Changes in Fund Balance·
Statement of Revenues. Expenditures, and Changes in Fund Balance •
Statement ofReven~.Expenses, and Changes in Fund Net Position •
Required Supplementary Information
Statement ofNet Position 33
Governmental Funds 34
Funds to the Statement ofActivities 36
Budget and Actual (Budgetary Basis)· General Fund 38
Budget and Actual (Budgetary Basis)· Hawaii County Housing Agency 42
Statement of Net Position· Proprietary Funds 43
Proprietary Funds 44
Statement ofCash Flows· Proprietary Funds 45
Statement of Fiduciary Net Position· Fiduciary Funds 46
Statement ofChanges in Fiduciary Net Position • Fiduciary Funds 47
Notes to the Basic Financial StatemenlS 48
Schedule ofChanges in the Net OPES Liability and Related Ratios 112
Schedule ofContributions (OPEB) 118
FINANCIAL SECTION (Continued)
Notes to Required Supplementary lnfonnation as Required by
GASB Statement No. 68 119
Schedule ofthe County's and Department's Proponionate Share
Notes to Required Supplementary Information as Required by
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Statement of Revenues, Expenditures. and Changes in Fund
Schedules ofRevenues. Expenditures. and Changes in Fund Balances
Budget and Actual (Budgetary Basis):
ofthe Net Pension Liability(ERS) 121
Schedule ofthe Employer Pension Contributions (ERS) 122
GASB Statement No. 75 123
Schedule ofChanges in Total Pension Liability (Bandsmen Pension) 124
Combining Balance Sheet -Nonmajor Governmental Funds 128
Balanoes -Nonmajor Govttnmental Funds 132
Highway Fund 135
Sewer Fund 136
Solid Waste Fund 137
Cemetery Fund 138
Parking Meter Fund 139
Vehicle Disposal Fund 140
Bikeway Fund 141
Workforce Innovation & Opportunity Act Fund 142
Golf Course Fund 143
Geothermal Relocation and Community Benefits Fund 144
Beautification Fund 145
Gcner11I Excise Tax Fund 146
Park Dedication Fund 147
Short-tenn Vacation Rental Enforcement Fund 148
Geothennal Asset Fund 149
Combining Statement ofFiduciary Net Position · Custodial Funds 150
Combining Statement ofChanges in Net Position - Custodial Funds 152
Combining Statement ofPrivate Purpose Trust Net Position -Private Purpose Trusts 154
Combining Statement ofChanges in Net Position -Private Purpose Trusts 155
STATISTICAL SECTION
Table I • Net Position by Component 157
Table 2 -Changes in Net Position 158
Table 3 • Fund Balances, Governmental Funds 160
Table 4 • Changes in Fund Balance. Governmental Funds 161
Table 5 • Real Propeny Assessed Values by Classification and Tax Rates 162
Table 6 • Principal Taxpayers 166
Table 7 -Propeny Tax Levies and Collections 167
Table 8 -Ra1ios ofOutstanding Debt by Type 168
Table 9 -Ratios ofGeneral Bonded Debt Outstanding 169
ST A TISTICAL SECTION (Continued)
fm
Table 10 ·Legal Debt Margin lnfonnation 170
Table 11 • Demographic and Economic Statistics 171
Table 12 · Principal Employers, County ofHawaii 172
Table 13 • Full-Time Equivalent County Government Employees by Function 173
Table 14 · Operating Indicators by Function 174
Table 15 • Capital Asset Statistics by Functions 175
INTRODUCTORY SECTION
Diane NakagawaMitchell D. Roth Dtrtctor AIO) 'OI'
Aaron K.H. 13ro\\n
~puty°'""'<'°'
County of Hawai'i
Finance Department
2S Aupu1u Sc1e:1:1. Solle 210) • Hilo. Ha\\'lLl0 1%no
(808)961-~2)4 • Fax{808)961-8509
April 26, 2024
The Honorable Mayor and Members of the Council
County of Hawai'i
25 Aupuni Street
Hilo, Hawai'i 96720
We transmit herewith the Annual Comprehensive Financial Repon for the County of Hawai' i,
State ofHawai'i (the County), for the fiscal year July I, 2022 to June 30, 2023.
This report was prepared by the Coumy's Department of Finance. The accuracy of the financial
statements and the completeness and fairness of their presentation arc the responsibility of the
County government. We believe the enclosed data are complete and accurate in all material
respects and arc reported in a manner designed to present fairly the financial position and results
of operations of the various funds of the County. All disclosures necessary to convey the
maximum understanding of the County's financial activities have been included. Management's
discussion and analysis is also included to aid users ofthe financial statements.
This report presents the financial position of the County of Hawai' i at June 30, 2023 and results
ofoperations for the fiscal year then ended. The report is divided into three sections:
• The Introductory Section includes this transminal letter, a Certificate ofAchievement for
Excellence in Financial Reporting, the County of Hawai'i's organization chart and lists of
elected and principal officials.
• The Financial Section contains management's discussion and analysis, the basic financial
statements, related notes, the combining and individual fund budgetary financial statements,
and the independent auditors' report.
• The Statistical Section includes selected financial and demographic information, generally
presented on a multi-year basis.
This report includes all funds ofthe County ofHawai'i, including its component unit, the
Depanment of Water Supply, established by the County Charter as a semi-autonomous body of
the County governmenL This component unit is included in the County's reporting entity
because of its financial relationship with the County.
The County provides a full range ofmunicipal services. These include police and fire protection;
emergency medical care; public prosecutor: culture and recreation; sanitation: social services;
Hawai'i County Is an Equal Opportunity Employer and Provider
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water; planning and zoning; construction and maintenance ofhighways, streets and
infrastructure; real property assessmeni and tax collection; and general administrative services.
However, the County does not provide such other traditional services as public education,
hospitals and courts. These services are provided by the State government.
The County consists ofthe island ofHawai'i, 4,028 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 has an elected mayor and a nine-member council.
Economic Condition and Outlook
The island ofHawai'i, commonly known as the Big Island, is located 214 miles from Honolulu,
the state capital; 2,200 miles from the west coast of the continental United States; and 4,000
miles from Japan. The city of Hilo on the east side of the island serves as the county seat as well
as the transportation and financial center for the Big Island. Hilo's infrastructure includes Hilo
Harbor, a deep-water port, and Hilo International Airport, which is capable ofhandling fully
loaded wide-bodied aircraft. Kailua-Kona and South Kohala, major tourist destination areas on
the west side ofthe Big Island, are served by flights from the United States mainland and Canada
through the Kona International Airport, with fl ights from Tokyo beginning again. Scheduled
freight services are available between the islands by air and sea transport. Communities on the
island are linked by a network ofState and County maintained streets and highways.
The Big rsland is the most diversified of the neighbor island economies. As a result it is buffered
to some extent when any one industry lags. The unemployment rate for the County as of
November 2023 was at 2.5 percent as compared to 4.1 percent from a year ago, which is
according to the State of Hawai'i Department of Business, Economic Development & Tourism
(DBEDT). This positive change further supports the idea that the County is experiencing
sireng1hening economic conditions as evidenced by the increase in revenues for the fiscal year.
In addition to the mild climate and natural beauty it sliares with other areas in the state, the
County features the Hawai'i Volcanoes National Park, in addition to four other national parks
that focus on Hawaiian culture and history.
Tourism has always been one of the major industries on the island. For the twelve month period
ending November 2023, there was a total projection of I , 76 I ,691 tourist arrivals to the island as
compared to $1,652,645 for the same period in the previous year. This represented an increase
of7 percent and further contributed to the strengthening economy being enjoyed by the County.
Major Initiatives
For tlte Year
Public Safety -Hawai'i Police Department ushered in a new chapter in its history with the
swearing-in of Police Chief Benjamin Moszkowicz in January. Chief Ben as he is known, was
selected as Chiefby the Hawai'i County Police Commission after serving 22 years with the
Honolulu Police Department.
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In May, the Chiefauthorized the use of pickup trucks with an open bed as subsidized police
vehicles, a first in the history ofthe department. Given that Hawai'i Island encompasses vast
swaths ofrural-and very rugged-terrain, the use of pickup trucks enables police officers to
serve the community better, faster, and most importantly, safer.
On September 16, 2022, the Hawai'i Police Department issued its first ever Maile Amber alert
after the reported abduction ofa 15-year old female in the Waikoloa area. Collaborative
investigative efforts included multiple local, state, and federal agencies, as well as an
overwhelming amount of community support. This community collaboration played a critical
rqle in locating the minor, freeing her from her abductor, and leading to the arrest ofthe
responsible suspect.
In April 2023, Area II Vice Section welcomed K9 Kim, a two-year-old German Shorthaired
Pointer who specializes in sniffing out narcotics. K9 Kim replaces K9 Rory, a 10-year-old
Springer Spaniel, who retired in August 2022.
June 30, 2023, was the final day of HPD's command and control of Animal Control. Earlier this
year, Hawai'i County Council passed Bill 22, creating a new Animal Control and Protection
Agency (ACPA), under the Office ofManagement. During Fiscal Year 2022-2023, HPD
administrators worked tirelessly, spending hundreds of hours overseeing Animal Control's
contract employees and daily operations, as well as creating new civil service positions, policies,
and procedures to set ACPA up for success.
The Hawai'i Fire Department (HFD) achieved significant milestones this year. The aging Bell
207 helicopter was retired, making way for the state-of-the-art Hl25 Airbus Helicopter,
enhancing the department's aeromedical capabilities. Under the guidance ofthe Mayor's Office,
lifeguard services were introduced at Kohanaiki Beach Park, a pivotal move by the Hf-D's Ocean
Safety Branch to ensure the safety ofbeachgoers.
Public Works -Over the past fiscal year the Department of Public Works (DPW) completed
major projects in our community including:
• Completed $22M reconstruction of Kalaniana'ole Street from Kamehameha/Railroad
Avenue to Ka'uhane Avenue, Project was completed in collaboration with State DOT
and includes enhancements to the roadway capacity, improved drainage, utility
relocation, installation of a new waterline, addition ofbike lanes and ADA compliant
sidewalks, improved signage, and safety improvements for motorists and pedestrians.
• Completed $1 l M reconstruction of Waianuenue Avenue from Ka'iulani Street to
Rainbow Drive. Project included pavement rehabilitation, sidewalk repairs, improved
access for pedestrians and bicyclists, improved traffic calming measures, improved
signage and striping, and traffic detectors. This was a State Transportation Improvement
Program (STIP) project and was completed in June 2023.
• Continued work on $31 M Hawaii County Emergency Call Center. Project includes a
new 17, l 27 square-foot essential facility for Police and Fire dispatch along with parking,
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landscaping, back-up generators, a communication tower, and redundant cooling systems
for a county computing center.
C11 ft11re and Recreation -The Department of Parks and Recreation completed multiple
Americans with Disabilities Act (ADA) Transition Plan projects including the Papa'aloa Park,
Paauilo Park, and Magic Sands Beach Park accessibility improvements projects. It also began
the Master Planning and Environmental Assessment process for Kealakehe Regional Park, Hilo
Skate Park, Oceanview Skate Park, Kikala-Keokea Park, and Hawai' i Paradise Parl<.
For the Future
Public Saf ety -The Police Department celebrated its 80'h anniversary on July I, 2023, and
celebrated by showcasing the department's history for 80 days straight on its social media
channels. It was the first time in decades that the department's history had been researched,
catalogued, and displayed to the public.
Faced with an unprecedented staffing shortage. the department worked closely with the county's
Department of Human Resources (OHR) to change the way we recruit and on-board new
officers. Since switching to a continuous recruiting model and with HPD taking over the agility
testing from OHR, we have experienced a sudden influx ofnew potential officers and expect to
start a third recruit class in early fiscal year 23-24.
Looking ahead, the Fire Department is poised to embark on a major initiative, focusing on the
community risk assessment, standards ofcover, strategic planning. and master planni ng,
ensuring a more efficient operation and safer future for the community.
Public Works -Dl'W is currently working on these major projects:
• Working on $I4M rehabilitation of Kilauea Avenue and Keawe Street, Ponahawai Street
to Waianuenue Avenue. The project includes paving and rehabilitating existing
roadways, sidewalks, and adding ADA ramps. Also includes upgrade ofexisting water
and sewer lines. Anticipated completion date is September 2024. This is a STIP project.
• Working on $26M rehabilitation ofWaikoloa Road from Mamalahoa Highway to Queen
Ka'ahumanu Highway. Project includes resurfacing over I I miles of multi-lanes of
pavement, improving shoulders, addition of bike lanes, and overall safety improvements.
Anticipated completion is June 2024. This is a STIP project.
• Working on $ J6M Waiakea/Palai Stream Drainage improvements. Project is a
partnership with US Army Corps ofEngineers and includes construction of three flood
control features: a ditch/levee floodwall with detention basin, a detention basin, and a
diversion structure. The project began in January 2024.
• Working on $82M Kilauea Lava Recovery repairs, including Pohoiki Road and Highway
137, to reconstruct I 3 miles ofroadway surfaces destroyed by the May 2018 eruption of
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KTiauea Volcano. DPW also is pannering with the Depanment of Water Supply to install
9 miles of waterline also damaged during the lava flow event. The project will take 2.5
years to complete and is a project funded by the Federal Emergency Management Agency
(FEMA).
• Working on $18M 4-Milc Creek Bridge reconstruction. The project is a collaboration
with the State of Hawaii (DAGS) lo design and construct a new reinforced concrete
bridge to replace the existing structure. both modernizing and improving safety while
retaining the historic features. Construction is planned to begin in 2025.
Culture a11d Recreation -The Depanmenl of Parks and Recreation will continue effons 10
complete the remaining projects of the ADA transition plan and other scheduled repairs and
improvements projects to park facilities. TI1e Department is working towards the
implementation ofan automated payment system which will provide efficient and convenient
payment options to allow Hawai' i County residents and visitors 10 enjoy our facilities.
The following design and construction projects to begin in 2024 are Laupiihoehoe Boat Ramp
repair, Papa'aloa Covered Playcourt. Hilo Skate Park, Isaac Kepo'okalani Hale Beach Park.
Afook-Chinen Civic Auditorium improvements, Kawananakoa Gymnasium repairs, Pickleball
Courts (island-wide), and Kealakehe Regional Park Phase I.
Other Financial Information
lntemal Co11trol
The management of the County is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets ofthe 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 confonnity 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 (I) the cost ofa control
should not exceed the benefits likely 10 be derived; and (2) the valuation ofcosts and benefits
requires estimates and judgments by management.
Budgetary Co11trol
The County maintains budgetary controls 10 ensure that legal provisions of the annual budget arc
complied with and that those expenditures do not exceed budgeted amounts.
Activities of the general fund and special revenue funds are included in the annual appropriated
operating budget. Project-length financial plans are adopted for the capital projects fund.
Budgetary control is established at the depanment level.
Formal budgetary integration is employed as a management control device for the general fund,
special revenue funds, and the capital projects fund. Budgetary control for the debt service fund
is achieved through general obligation bond indenture provisions.
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The basis ofaccounting used for the budgets ofthe general and special revenue funds differs
from generally accepted accounting principles. Intergovernmental revenues are recognized when
awarded by the granting agency, encumbrances and unexpended allotments are treated as
expenditures for purposes of determining legal compliance with the annual budget, all leases are
treated as operating leases, and accounts payable are not accrued.
The County also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Encumbrances outstanding at fiscal year end are included in
the various fu nd balance categories based on whether the resources are restricted, committed or
assigned and do not constitute expenditures or liabilities because they will be honored during the
following year. As demonstrated by the statements and schedules included in the financial
section ofthis report, the County continues to meet its responsibility for sound financial
management.
Significant Accountillg Policies
The County has implemented Governmental Accounting Standards Board Statement No. 14, The
Financial Reporting Entiry (GASB Statement No. 14), Statement No. 39, Determining Wherher
Certain Organizations Are Componenr Units (GASB Statement No. 39) and Statement No. 61,
The Financial Reporting Entity: Omnibus an amendment ofGASB Statements No. 14 and 34
(GASl3 Statement No. 61). All organizations, activities or functions that meet the criteria in
GASB Statement No. 14, No. 39 and No. 61 for inclusion in the reporting entity are included in
the County's basic financial statements. For further discussion on other significant accounting
policies, refer to the notes to the basic financial statements.
Fi11ancial Higlllights
Governmental activities increased the County's net position by $254.7 million, which
represented almost the entire total increase in net position of the County.
There was a $257.2 million (37%) increase in revenues from governmental activities, due to the
following factors. As mentioned previously, the County experienced a $98.9 million increase in
revenues from taxes, which was primarily a reflection of increases in real property taxes of$73.7
million and County transient accommodations tax of$14.7 million. The increase in real property
tax revenues was a direct reflection of the total increase of$6.8 billion in assessed value ofthe
net taxable real property. with the majority ofthe increase stemming from the category oftaxable
buildings ($4.6 billion). The County also recognized an increase in revenue from the County
transient accommodations tax, under Act l , I" Special Session 2021, which became law on July
8, 2021. The counties were authorized to establish and administer their own transient
accommodations tax (TAT) at a maximum rate of3 percent. On December I 0, 2021, Mayor
Mitchell D. Roth signed into law Ordinance 2 l-89 which imposed a 3 percent HCTAT, which
shall take effect on January I, 2022. Monies collected were to be deposited into the general fund
as unrestricted revenues. The tax was only implemented for half a year in the prior fiscal year
and fiscal year 2023 was the first full year that the tax was in effect.
Overall expenses from governmental activities increased by $134.3 million (24%) from the
previous year, which was a result ofthe County experiencing a $22.0 increase in expenditures
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related to general claims and judgments due several large claims remaining unresolved at fiscal
year end and thus, increasing the related liability. $52.0 million of expenditures were incurred in
buying out lands in the Puna lava recovery area under a federal grant in order to prevent future
development. There was also an increase of$1 l .7 million related to salaries and wages,
inclusive of overtime and differentials. due to bargaining unit increases.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants. Plante
& Moran, PLLC was selected in accordance with the County Charter and the procurement
provisions ofthe Hawaii Revised Statutes (HRS) and Hawaii Administrative Rules (HAR) to
perform the audit.
Employee Union Co11tracts
Hawai'i County's civil service employees are members ofeight different bargaining units, of
which all contracts are set to expire on June 30, 2025 .
Certificate ofAc/1ieveme11t
The Govemment Finance Officers Association ofthe United States and Canada (GFOA)
awarded a Certificate ofAchievement for Excellence in Financial Reporting to the County of
Hawai'i for its Annual Comprehensive Financial Report for the fiscal year ended June 30. 2022.
This was the thirty fifth consecutive year that the government has received this prestigious
award. In order to be awarded a Certificate ofAchievement, a government must publish an
easily readable and efficiently organized annual comprehensive financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate ofAchievement is valid for a period ofone year only. We believe our current
Annual Comprehensive Financial Report continues 10 meet the Certificate ofAchievement
Program's requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Aclmowletlgments
The preparation of this report was made possible by the efficient and dedicated services of the
entire staff of the Department of Finance and fiscal personnel in other departments. I am grateful
for their help in preparing this report. I also thank the Mayor and the members ofthe County
Council for their interest and support in assuring the continuing sound financial condition ofthe
County ofHawai'i.
!ft.~
Diane Nakagawa
Director of Finance
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•
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Hawaii
Hawaii
For its Annual Comprehensive
Financ ial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
-8
County of Hawaii
Organi zation Chart
I County Electorate I
I I Prosecuting Attorney IICounty Council ~ Mayor II I
I
County
Clerk
I
Qffi£~ Qf Managemen1:
Managing Director -
County
Auditor
Departments under Agencies under
direct supervision ofthe
direc1 supervision ofthe
Managing Director: Managing Director:
Civil Defe11seCorporation Counsel
Finance Office <>/Agi11g
Pla1111i11g Mass Transit
E11viro11111e11tal Management Office<!(Housing &
Research & Development
Community Development
Public Works
Parks & Recreation
Information Technology
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I
Departments under
commissions and
adminisirative supervision
ofthe Mayor:
Huma11 Resources
Police
liquor Control
Fire
Water Supply
(semi-a11to110111011s)
County of Hawaii
Elected Officials
June 30. 2023
Administrative Officers (Tenn: 2020-2024)
Mitchell Roth Mayor
Kelden Walljen Prosecuting Attorney
County Council (Term: 2022-2024)
Heather L. Kimball Chair
Holeka Goro Inaba Vice Chair
Cindy Evans Member
Michelle M. Galimba Member
Jenn Kagiwada Member
Matt Kaneali'i-Kleinfelder Member
Ashley L. Kierkiewicz Member
Susan L. K. Lee Loy Member
Rebecca Villegas Member
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Principal Officials
June 30. 2023
County Clerk
County Auditor
Managing Director
Deputy Managing Director
Corporation Counsel
Director of Finance
Planning Director
DireclOr ofPersonnel
Director of Research and Development
Chiefof Police
Fire Chief
Director ofPublic Works
Director ofEnvironmental Management
Parks and Recreation Director
Manager-Chief Engineer, Depanment of Water Supply
Civil Defense Administrator
Director ofLiquor Control
Mass Transit Administrator. Acting
Executive on Aging
Administrator, Office ofHousing and
Community Development
Director of Information Technology
Jon I lenricks
Tyler Benner
Lee Lord. PhD
Bobby Command
EliT.abcth Strancc
Deanna Sako
Zendo Kem
Waylen Lcopoldino
Douglass Adams
Benjamin Moszkowicz
Kazuo Todd
Steven Rodenhurst
Ramzi Mansour
Maurice Messina
Keith Okamoto
Talmadge Magno
Gerald Takase
Victor Kandle
William Farr Ill
Susan Kunz
Robert Ewbank
• 11 •
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FINANCIAL SECTION
Plante & Moran, PLLC
1096 Woodl'1lll'tl Awr•~Qlante Octr<l>t Ml •8226 1906
l(j: 313A96 72\X)
fal(; 3l3 ll967201moran 1)1\ln!Qil)O(illl(;()ilfl
Independent Auditor's Report
To the Chair and Members of the Couniy Council
County cf Hawai'I, State of Hawal'i
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the
County of Hawai'i, State of Hawai'i (the "County") as of and for the year ended June 30, 2023 and the related
notes to the financial statements, wnich collectively comprise the County's basic financial statements, as tisted in
the table of contents.
In our opinion, the accompanying financial statemenis referred to above present fairly. In all material respects, the
respective financial position of the governmental ac~vities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of the County of Hawai'i. State of
Hawai'i as of June 30, 2023 and the respective changes in its financial pos~ion and, where applicable, its cash
flows thereof and the respective budgetary comparisons for the General Fund and major special revenue fund for
the year then ended In accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are further
described In the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are
required to be Independent of the County and to meet our other ethical responsibili1ies in accordance with the
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Emphasis ofMatters
As discussed in Note 15 to the financial statements. the beginning net position of the Department of Water
Supply's basic financial statements has been restated to correct a misstatement Our opinion is not modified with
respect to this matter.
As discussed in Note 1 to the financial statements, during the year enderj June 30, 2023, the County adopted the
provisions of Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information
Technology Arrangements. Our opinion is not modified with respect to this matter.
Responsibilities ofManagement for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America and for the design, implementation,
and maintenance of internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, wnether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events.
considered in the aggregate, that raise substantial doubt about the County's ability to continue as a going concern
for 12 months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
13
To the the Chair and Members of the County Council
County of Hawai'i, State of Hawai'i
Auditor's Responsibilities for the Audit ofthe Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are tree
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not
a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations. or the override of internal control. Misstatements are considefed material if there is a
substantial likelihood that, individually or In the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error. and design and perform aud~ procedures responsive to those risks. Such procedures include
examining, on a test basis. evidence regarding the amounts and disclosures in the financial slatements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the
County's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether. in our judgment, there are conditions or events. considered in the aggregate, that raise
substantial doubt about the County's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that
we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and other required supplementary information, as identified in the table of contents, be
presented to supplement the basic financial statements. Such information is the responsibility of management
and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in
an appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information In accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limited procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
14
To the the Chair and Members of the County Council
County of Hawai'i, State of Hawai'i
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County of Hawai'i, State of Hawai'i's basic financial statements. The combining statements and
individual fund schedules, as identified in the table of contents. are presented for the purpose of additional
analysis and are not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining statements
and individual fund schedules are fairly stated in all material respects in relation to the basic financial statements
asa whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report.
The other information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other
information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other Information and the basic financial
statements or whether the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 26, 2024 on our
consideration of the County of Hawai'i, State of Hawai'i's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws. regulations, contracts, grant agreements, and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Covnty of
Hawai'i, State of Hawai'i's internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering the County of Hawai\
State of Hawai'i's internal control over financial reporting and compliance.
~/~1 Pt.LC.
April 26, 2024
15
MANAGEM ENT'S DISCUSSION AN D ANALYSIS
This section of the County ofHawai'i's (the County) Annual Comprehensive Financial Report
presents a narrative overview and analysis ofthe financial activities ofthe County for the fiscal
year ended June 30, 2023. We encourage readers to consider the information presented here in
conjunction with additional infonnation that we have furnished in our letter oftransmittal.
FINANCIAL lllGH LIGHTS
• The assets and deferred outnows ofresources of resources of the County exceeded its
liabilities and deferred innows ofresources at the end of the fiscal year by $573.3 million (net
position}. This amount includes a negative balance of$74 I .4 million in unrestricted net
position, a positive increase of$14. I million from the prior year, which is explained in the
sections below. This amount includes $2.4 billion oftotal assets and $158.7 million oftotal
deferred out nows of resources; $1.8 billion oftotal liabilities and $187.9 million oftotal
deferred in nows of resources.
• As of the end of fisca l year 2023 . the County's governmental funds reported combined
ending fund balances of$585.6 million, an increase of$209. I million from the prior year.
Approximately 35 percent ofthis total amount, $206.4 million, is available for spending at
the County's discretion (unrestricted fund balance}.
• At the end ofthe current fiscal year, unrestricted fund balance for the general fund was
$142.3 million, or 31 percent of total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements comprise three components: (I}
Government-wide financia I statements, (2) Fund financial statements, and (3) Notes to the basic
financial statements. This report also contains both required and other supplementary
information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the County's finances, in a manner similar to a private-sector business.
1l1c statement of net position presents information on all ofthe County's assets, deferred
outflows ofresources, liabilities, and deferred in!lows of resources, with the difference reported
as net position. Over time, increases or decreases in net position may serve as a useful indicator
of whether or not the financial position of the County is improving or deteriorating.
TI1e statement of activities presents information showing how the County's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless ofthe timing of related cash flows.
Thus, revenues and eKpenses are reported in this statement for some items that will only result in
cash nows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses
pertaining to earned but unused vacation and sick leave.
Both ofthe government-wide financial statements distinguish functions of the County that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the County include
public safety, highways and streets, health, education and welfare, culture and recreation,
-16
sanitation and general government. The business-type activities of the. County include rental
housing for senior citizens and families.
The government-wide financial statements include not only the County itself (known as the
primary government), but also the Department of Water Supply, a legally separate entity that the
County is financially accountable for. Financial infonnalion for this component unit is reported
separately from the financial information presented for the primary government itse lf.
Fund Financial Statements
The fund financial statements are designed to report infonnation about groupings ofrelated
accounts which are used to maintain control over resources that have been segregated for specific
activities or objectives. 111e County, like other state and local governments, uses fund accounting
to ensure and demonstrate compliance with finance-related legal requirements. All ofthe funds
of the County can be divided into the following three categories; governmental funds,
proprietary funds, and fiduciary funds.
Governmental funds. Governmen1al funds are used to account for essentially the same
functions reported as governmental activities in the governmenc-wide financial statements
i.e., most of the County's basic services are reponed in governmental funds. These
stacements, however, focus on ( l) how cash and other financial assets can readily be
convened to available resources and (2) the balances lefl at year-end that are available for
spending. Such information may be useful in determining what financial resources are
available in the near future to finance the County's programs.
Because the focus of governmental funds is narrower than that ofthe government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may bener understand the long-term impact of the
government's near-term financing decisions. Both the governmental funds balance sheet
and the governmental funds statement ofrevenues, expenditures. and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The County maintains several individual governmental funds organized according to their
type (general , special revenue, debt service, and capital projects). Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement
of revenues, expenditures, and changes in fund balances for the general fund and capital
projects fund. which are considered to be major funds. Data from the remaining
governmental funds are combined into a single, aggregated presentation. Individual fund
data for each ofthe non-major governmental funds is provided in the form ofcombining
statements elsewhere in this repon.
The County adopts an annual appropriated budget for its general fund and special revenue
funds . A budgetary comparison statement has been provided for these funds to demonstrate
compliance with this budget. The budgetary comparison statement for the general fund and
the Hawaii county housing agency are localed in the basic financial statements, whereas the
budgetary comparison schedules for the nonmajor special revenue funds are presented
elsewhere in this repon.
Proprietary funds. Proprietary funds are generally used to account for services for which
the County charges outside customers. Proprietary funds provide the same type of
information as shown in the government-wide financial statements, only in more detail. Tiie
County maintains only one type of proprietary funds, enterprise funds. Enterprise funds
-17
are used to report the same functions presented as business-type activities in the government
wide financial statements. The County uses enterprise funds to account for the operations of
the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project.
Fiduciary funds. fiduciary funds are used to accounr for resources held for the benefit of
parties outside the County. The private-purpose trnsts and the custodial funds are reported
under the fiduciary funds. Since the resources ofthese funds are not available to support the
County's own programs, they are not renected in the government-wide financial statements.
The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full
understanding ofthe data provided in the government-wide and fund financial statements.
Other Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information, which is presented immediately following the notes
to the basic financial statements. The combining statements referred to earlier in connection with
nonmajor governmental funds and budgetary comparison schedules for the nonmajor special
revenue funds are presented immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL AN ALYSIS
Condensed Statements of Net Position
June 30, 2023 and 2022
Pl'lnallrl' Co''trnment
GO\'tr1untntal Atti\•ilies Buli11ess.f\'I?.!'. Ac1h1 itits ·rotal
2Dll 1JW 2lli .2.Qll lQZ.l 2222
ASStlS:
Curn.'1ll anJ t'ltlll!r assets s 810571,818 S 562.U 1,081 s l.200.83t s 1.093.447 s 811.772.649 s 563,924.528
CapilAJ ~$.SCI$, 11c1 1549.776 749 1.427,420.194 3S45 540 3 555.355 I,SS3.322.29S 1.430,975.S·W
Tota.I as$1.:lS 2,360.348.567 1.990,251 .215 4.146.371 4.648.802 2.l<>S,094,944 1.994.900.017
D<frrrtd 011tOows
Of Rtsourtt.s: I 58,703.500 172 440 984 t58.703,SOO 172,440,984
Tot.al ,\1$('1.s and O-ererrtd
Outflows of Rtsourcts 2,519.052,067 2.162.692,259 4 746 311 4.648,802 2.S23,798,444 2,167,341 .06 1
l.lAbililitS:
Loog-1crin linb1liucs
um.St<lnding U87.163.76J 1.482.602.194 8,090 41.SOI 1.S87.171.853 l.•82.643.695
()thcr liab1l11 1c$ 17SJ56,642 142.610686 91.200 90.049 175347 842 142.760 735
Toltll liabilities 1,762.420,405 1.625.272,880 99.290 1)1,550 1.762,519.695 I 625.404,430
Oefe:rred fnnow$
Of Rt·sourtf·t: 187,94tJ68 223,406,926 187941368 223,406.926
Totttl 1.iabilhits Rnd
D-tftrrcd lnOO wt
or Rtsourct.1 l,9S-0,361,173 1.848,679.806 99290 131 S50 1,950,461,06) I,848,81 IJS6
Ntt pus.icion:
Net invcsuni:nt 1n
e14>11al assets 1.(127.992.548 95S.134, 18S 3.537,4S6 3513.854 1.031,5)0.004 9S9.248,039
Rcsu1dc:i.1 283.205.882 114.790,899 203.205.882 114.790.899
Unrestricted jH2.508,136j j756,S12,631 I I 109631 1.(103.398 !741 .398.SOS) j735,509.233!
Tc1nl ncl po.s1t1on s 568.690.294 s 314.012.453 s 4,647.037 s 4.511.252 S57J.337,381 S3t 8.S29,705
-18
Analysis of Ncl Position
As noted earlier, net position may serve over time as a useful indicator ofa government's
financial position. In the case ofthe County, assets and deferred outnows ofresoun:es exceeded
liabilities and deferred innows of resources by $573.3 million at the close of the most recent
fiscal year.
By far the largest portion of the Count y's net pos ition reflects its investment in capital assets
(e.g., land, buildings, infras1ruct11re, and equipment) less any related debt used to acquire those
assets that is still outstanding. The County uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the County's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themse lves
cannot be used to liquidate these liabilities.
An additional portion of the County's net position represents resources that are subject to external
restrictions on how they may be used.
At the end ofthe current fiscal year, the County is able to report positive balances in two of its
three categories ofnet position, both for the government as a whole, as well as for its separate
governmental activities. All three categories of net position are positive for its business-type
activities.
TI1e County's net position increased by $254.8 million from the prior year, which was an increase
of$1 22.8 million (93%) from the increase that was experienced last fiscal year. The main
reasons for the large increase in the current year's increase over last year, was due to a substantial
increase in revenues from taxes of$98.9 million from the prior year, $1 11.3 million ofroad
dedications and transfers from the State. This was in addition to a decrease in expenditures
related to the County's net pension and other post employment benefits (OPEB} liability ofa
combined total of approximately $46.7 million.
See further discussion regarding the changes in the County's net position in the section labeled
Analysis ofChanges in Net Position.
The County's net capital assets increased by $122.3 million (9 percent}due to the large amount of
capital improvement projects done by the County during the current fiscal year and infrastructure
related assets that were contributed. See further discussion ofthe increase in capital assets on
page 25.
111e County's long-term liabilities outstanding increased by$I04.5 million (7 percent) due
primarily to the issuance of$99 million ofgeneral obligation bonds and $28.5 million of bond
anticipation notes that were not paid until subsequent to fiscal year end . Although the County's
net pension liability increased by $19.1 million, this was offset by a corresponding decrease in the
projected deferred inflow of resources related to the liability and not by an increase in
expenditures. There was a $43.3 million decrease in the net other post-employment benefit
obligation. See further discussion ofthe increase in long-term debt outstanding on page 27.
-19
Condensed Statements of Activities
For the FiStal Years Ended June 30, 2023 and 2022
Prim11ry GO\itrutntnl
Gtt\'t rnmtnt1d Atth;lits Bu1int5'·l)'pt Atliviti:tt l olld
2.ill 2Qll 2.ill 2Qll 1Ql1 illZ
Rtrtnuts:
Progrrun revenues:
C1u\rg-es frlf S(rviccs s 64.789,259 s 59.81 5.972 s S41,IJ9 s SOM72 s 6S.J30.J98 s 60.J IM·1'1
O~rat1n3 grants and conuil:>utions 141.690,010 102.386.921 331.282 277.837 142,021.292 10H>6U58
('11pital gttt!llS and COlllJibuO(ttlS 139.937.282 36.716.672 139.937.282 36.716.672
Gen..:ral rC\>C nUCS.
Property ca.~es 445.888,368 372.1 44.094 445,888.368 J72.144.IJ'J.I
Other ta.~<"$ 145.073,344 I 19.947.854 145,07).344 119,947,854
Grants and coo1ributio11s. un~tri<"ted 812,837 638.219 812,837 (>38.2 19
lovc:suncnt ean1ings I1.101,680 190,002 2.104 436 11,103,784 190.438
0th« J.438,202 1.698,844 1,438.202 1.698.S•M
1'c1al r..:vcn~k."S 950.730.982 693.538,578 814,525 778,745 951,605,507 694,3 I 7,31.J
!:xpen:tts:
General govcrnull!nl 102.326.533 84,642.838 102.326.533 &4.642 .838
Poblic safct)• 231,891,768 242.555,0SO 231,891,768 242.SSS,050
M1g.hW"1)'S and Slrc"'ts 132.S80,4S9 66.452,7 18 I32.580.459 6(1,452,7 18
M.:ahh.. educatton lltld welfare I15.580.138 61,230.308 874.238 728.454 I16.454,)76 61.953.762
Culture and recreation 36.267.778 32,573,321 36.267,778 32.573.321
Sanitation 64.095.4 1 I 61,075,307 64.095,41 I 6J.07S.3U7
lnlt.'fCSI on l<.Mtg-11.:nu clcbt 13.181.506 13,01 l,4RI ll.181.506 13.011;181
Total t.'tf".""C1~cs 695.923.593 561.541.023 874.238 728.454 696.797,83 I 562.269.177
Increase 1n ncl pos11 km
before transfors 2S4.807.389 131.997,515 287 S0.291 254.807.676 132.()17,846
Trn.nsftrs
Ch:i.uge 01 n~I PQ$ition
U42 S!IB)
2H,677.841 uz~aan lll,821.674
122 ~·iS
129.835 12' &11 226.172 254.807,676 132.047.8·1 6
!'kt pos1ttt.>n a1 bcgmnm~of y~nr 3J.1.0 I 2,453 182.190,779 4.St7,2S2 4,291,080 318.529.705 186.481.859
t-k-t postnon mi:ndo()'Ca.r s 568.690,294 s 314,012.453 s 4.647.087 S 4.Sl7.2S2 5573.337.381 s 31852').701
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by $254. 7
million, which represented almost the entire total increase in net position ofthe County.
There was a $257.2 million (37%) increase in revenues from governmenlal activities, due to 1he
following factors. As mentioned previously, the County experienced a $98.9 million increase in
revenues from taxes, which was primarily a renection of increases in real property laxes of$73. 7
million and County transient accommodations tax of$14.7 million. The increase in real property
1ax revenues was a direc1 reflection of1he total increase of$6.8 billion in assessed value ofthe
net taxable real property, with the majority ofthe increase stemming from the category of taxable
buildings ($4.6 billion). The County also recognized an increase in revenue from the County
transient accommodations tax, under Act I, 1 • Special Session 2021, which became law on July
8, 2021 . The counties were authorized to es1ablish and administer their own transient
accommodations tax (TAD at a maximum rate of 3 percent. On December I 0, 2021, Mayor
Mitchell D. Roth signed in10 law Ordinance 21-89 which imposed a 3 percent HCTAT, which
shall lake effect on January I, 2022. Monies collected were to be deposited into the general fund
as unrestric1ed revenues. The tax was only implemented for half a year in the prior fiscal year
and fiscal year 2023 was the firs• full year that the tax was in effect.
-20
-•
Overall expenses from governmental activit ies increased by $134.4 million (24%) from the
previous year, which was a result ofthe County experiencing a $22.0 increase in expenditures
related to general claims and judgments due several large claims remaining unresolved at fiscal
year end and thus, increasing the related liability. There was also an increase of$1 l.7 million
related to salaries and wages, inclusive of overtime and differentials, due to bargaining unit
increases.
The charts below illustrate the County's governmental expenses and revenues by function, and its
revenues by source. As shown, public safety is the largest function in expense (33 percent),
followed by highways and streets ( 19 percent) and health, education and welfare ( 17 percent).
General revenues such as property and other taxes are not shown by program, but are effectively
used lo support program activities countywide. For governmental activities overall, without
regard to programs, property taxes are the largest single source of funds (47 percent), followed by
other taxes ( 15 percent) and operating gra111s and contributions ( 15 percent).
Expenses and Program Revenues -Governmental Activities
Yea r Ended June 30, 2023
SlS0.000.000 r
$200.000.000
$1$0,000.000
St00.000.000
sso.000.000 L -
so ,f'
,~I ,;•
.i-"
l ,,.~
-21 •
Revenue by Source -Governmental Activities
Year Ended June 30, 2023'
Gtants andcontributions
noc res1(te1td 10 5')e(lf11t -:::::;;;;;;;;;j:;::====~Othe(, Si,438,202
p1ovams, $812.8l7 lnvestmMtearNnes.Sll.lOl,680 ---
Othef U.Jtes.
St4S,073,344
Pf'Oi)~\Yla••S,
$445.888,368
----
-ChMges fo< ~rvlm,
S6'.m.is9
O(>ef11Jngg1anu aM
(OnUibUUf,JMS,
$141.690.010
,ca~1•lvinua11<d
CCftVib'Jtion1,
$139.931,lSl
Business-type activities. Business-type activities net position increased by $130,000 and had an
extremely minimal impact on the increase in the County's net position overall. TI1e largest fact or
that contributed to the increase is the capital asset transfer from the governmental activities of
$130,000. Expenses for health, education and welfare account for all of the $874,238 of expenses
which represents a 20 percent increase from the prior year, with the largest increase occurring in
the area ofutilities, which increased by 56 percent. Charges for services were $54 l, l 39 and
operating grants and contributions were $331 ,282, which were comparable to the prior year.
FINANCIAL ANALYSIS OF T HE COUNTY'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Govemme11talft111ds. TI1e focus of the County's governmental funds is to provide information
on near-term inflows, outflows, and balances ofspendable resources. Such information is useful
in assessing the County's financing requirements. In particular, unrestricted fund balance may
serve as a useful measure of a government's net resources available for spending at the end ofthe
fiscal year.
As of the end of fiscal year 2023, the County's governmental funds reported combined ending
fund balances of$585.6 million, an increase of $209. I million (56 percent) in comparison with
prior year. Approximately 35 percent of this total amount ($206.4 million) constitutes
unrestricted fund balance. The unrestricted portion of the fund balance is comprised of( I) $69.8
million in committed fund balance, (2) $53.4 million in assigned fund balance, and (3) $83.2
million in unassigned fund balance. The remainder of the fund balance is divided between $9. I
million in nonspendable fund balance for inventory and prepaid items and $3 70.0 million in
restricted fund balance. Approximately 63 percent ofthe total restricted fund balance is due to
restrictions relating 10 highways. streets and abandoned vehicles ($179.6 million) and debt service
-22
($54.4 million). $76.4 million of the fund balance restricted for highways, streets and abandoned
vehicles was due to the General Excise Tax fund that was created in fiscal year 2019, which
accounts for the general excise tax surcharge that became effective in fiscal year 2019. The fund
balance of the General Excise Tax Fund increased by $9.2 million due primarily to increased
sales activity throughout the County, which also correlates to the increased levels oftourism.
The general fund is the chief operating fund ofthe County. At the end ofthe current fiscal year,
unrestricted fund balance ofthe general fund was $142.3 million, while total fund balance
increased to $190.7 million. As a measure ofthe general fond's liquidity, it may be useful to
compare both unrestricted fund balance and total fund balance to total fund expenditures.
Unrestricted fund balance represents 31 percent oftotal general fund expenditures, while total
fund balance represents 41 percent ofthat same amount.
The fund balance of the Couniy's genera l fund increased by $79.2 million during the currem
fiscal year as compared to an increase of$23.0 million in the prior year. Key factors in this
substantial increase ($56.2 million) over last year's increase are as follows:
• Positive increases of $69.0 million ( 19 percent) in real property tax revenues; $21.2 million
(166%) in County transient accommodations tax; $46.2 million (39%) in intergovernmental
revenue and $12.1 mill ion (532%) in investment earnings.
• With the increase in multiple revenue sources, the County's expenditures also increased from
the prior year by $122.4 million (19%). In addition to increases in salaries and wages and
relaled benefits resulting from bargaining unit changes, lhe County also incurred $40.4
million in increased capital outlay spending. This increase of 63 percent from the prior year
was mostly due to increased expenditures related to capital improvement projects throughout
the County.
The fund balance ofthe County's capital projects fund increased by $96.5 million ( 135 percent)
during the current fiscal year. The increase is primarily due to the fact that there was $140.4
million of other financing sources resulting from new issuances ofdebt by the County in the
current fiscal year. This amount included $110.9 million ofne wly issued bonds and related
premiums, $28.S million ofbond anticipation notes and $1.0 million from state revolving fund
loans. Expenditures of the fund increased by $37.2 million from the prior year. See discussion
regarding construction activity during the current year in the capital asset section below.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds
have combined total fund balances of$54.4 million, all ofwhich is restricted for the payment of
debt service. The net increase in the combined fund balances during the current year in the debt
service funds was $7.5 million, which was a 16 percent change from the prior year. The increase
in fund balance was much higher than the increase experienced in the prior year due to the fact
that the amount oftransfers-in exceeded the actual expenditures incurred for principal and interest
payments by a higher degree than in the prior year.
Proprietary ftuuls. The County's proprietary funds provide the same type of information found
in the government-wide financial statements, but in more detail.
Unrestricted net position ofthe Kulaimano Elderly Housing Project (Kulaimano) at the end ofthe
year amounted to $487,608, and $622,023 for the Ouli Ekahi Affordable Mousing Project (Ouli
Ekahi). Unrestricted net position for Kulaimano increased by$ I 0,436 and unrestricted net
position for Ouli Ekahi increased by $119,399. Other factors concerning the finances ofthese
two funds have already been addressed in the discussion of the County's business-type activities.
-23
GENERAL J•UND BUDGETARY lllGllLIGllTS
Differences between the original budget and the final amended budget were primarily the result
of a $11.1 million increase in appropriations for expenditures and other financing uses, the most
significant reasons were due to $7.4 million of additional grant appropriations from the federal
government relating to mass transi t ($1.9 million) from the Federal Transit Administration and
the Community Development Block Grant funding from the U.S. Department of Housing and
Urban Development ($2.8 million).
Differences between the final budget and the actual (budgetary basis) resulted in approx imately
$29.1 million more revenues than expected and $60.7 million less expenditures than appropriated.
Tiiis is primarily due to the following factors:
• The positive variance between budgeted and actual revenues was entirely attributable to the
positive results in taxes and assessments, with $1 7.6 million more revenue resulting from
property taxes and $14 .9 million more resulting from the County's transient accommodation
tax.
• Approximately $12.8 million of the unspent appropriations is related to salaries and wages
and $22.0 million is from the various countywide expenditure accounts relating to salaries
and wages, including benefits and anticipated compensation adjustments. The variance is due
primarily to unfilled vacancies and continued effons by each department to control payroll
costs during the budget year due to the tough economic conditions facing the County. The
following functions are responsible for the majority of the total variance in expenditures:
public safety ($15.4 million) and general government ($8.0 million).
CAPITAL ASSET ANO OEBT ADMINISTRATION
Capilal assets. The County's investment in capita l assets for its governmental and business-type
activities as ofJune 30, 2023 amounts to $1 .6 billion (net ofaccumulated depreciation). This
investment in capital assets includes land and improvements, buildings and improvements,
equipment, leases, subscription assets, easements, and infrastructure assets, which consists of
primarily roads and bridges. The total increase in the County's investment in capital assets for
the current fiscal year was 9 percent.
Major capital asset events during the current fiscal year included the following:
• Construction continued on the Hawai'i County Rad io System Upgrade project;
construction in progress as ofthe end of the current fiscal year had reached $21.4 million
with $3.3 million coming from the current fiscal year.
• Construction continued on the Hilo Wastewater Treatment Plan Upgrade project;
construction in progress as ofthe end ofthe current fiscal year had reached $11.2 million
with $8.8 million coming from the current fiscal year.
• Construction continued on the Pua Force Main Installation and Rehabilitation project;
construction in progress as ofthe end ofthe current fiscal year had reached $3.3 million
with $2.4 million coming from the current fiscal year.
• Construction continued on the Kukuiola and Village 9 Affordable Rental and Homeless
project; construction in progress as ofthe end of the fiscal year had reached $3 .1 million
with $2.4 million coming from the current fiscal year.
-24
• Construction continued on the Kolekole Gulch Park Accessibility Improvements project;
construction in progress as ofthe end ofthe fiscal year had reached $5.7 mill ion with
$5.4 million comi ng from the current fiscal year.
• Construction continued on the NAS Swimming Pool Accessibility Improvements project;
construction in progress as ofthe end ofthe fiscal year had reached $3.4 million with
$3.0 million coming from the current fiscal year.
• Construction began on the Pa'auilo Park Accessibi lity Improvements project;
construction in progress as of the end ofthe fiscal year had reached $2.7 million and the
project was transferred to Buildings.
• Construction continued on the Papa'aloa Park and Pa'auilo Park Accessibility
Improvements project; construction in progress as of the end of the fiscal year had
reached $4.J million with $1 .2 million coming from the current fiscal year; project was
transferred to Buildings.
• Construction continued on the Richardson's Ocean Park Access Improvement project;
construction in progress as ofthe end ofthe fiscal year had reached $3.6 million with
$2. 7 million coming from the current fiscal year.
• Construction continued on the Kalaniana'ole Avenue Reconstruction project;
construction in progress as ofthe end of the fiscal year had reached $15.0 million with
$5.6 million coming from the current fiscal year; project was transferred to the State.
• Construction continued on both ofthe Kilauea Avenue Rehabilitation projects;
construction in progress as of the end of the current fiscal year had reached a combi ned
$15.2 million with $3.8 million coming from the current fiscal year; one ofthe projects
worth $12.5 million was transferred to Buildings.
• Construction continued on the Waiiinuenue Avenue Rehabilitation project; construction
in progress as ofthe end ofthe fiscal year had reached $10. l million with $5.9 million
coming from the current fiscal year.
• Construction continued on the Hawai' i County Emergency Call Center project;
construction in progress as of the end of the fiscal year had reached $16. I million with
$6.5 million coming from the current fiscal year.
• $9.9 million ofdedicated roads were received by the County in the current fiscal year and
an additional $10 l .4 million was transferred to the County by the State.
Capital Assets
(net ofdepreciation)
June 30, 2023 and 2022
Prim111tt Go,·tromtot
Land and i1nprovcf™!nl$
lnlfastrueture assclS
Groundood sne imprllVC1TI<n1s
Buildings and i111provem1.-nls
Easen'!Cnls
R1gh1 I<> use.<\$$Cl$
Sub~cripllotl asset$
Equipincnt
Construc11on,,'Off.; in oroti:r(S$
'f1J.lal
Govcrnmtnt11l Acti\•ili-tJ
2023 ml
s 390,407.932 s JI0.930.661
285.691,707 281.0Sl.440
650.884.1 IS 645.409.863
22.3 17)44 1) ,570.853
17.784)51 14.420.1 25
3.536.865
60.819.955 63.135.522
118.274,480 96.89<UJO
Sl.S•l9,776.749 St.427.420.19•1
Rusint:ss-i~·ft Atli, •ilits
s lfilJ
753.877 s 19.U
7S3.877
31,811
2.612.632
J6, IS8
2.699,466
41.970
105.256 s3.545.546
65.854
SJ.SSl.JSS
1'olltl
1JJ.ll ill1 s 391.161.809 s 311.68038
28$.691.707 281.053.440
J l,811 J6.IS8
653.496.747 648.109,329
22) 17)44 15.570,853
17,784.JSI 14,420, 125
3.536,865
60,921.925 63.201.376
118,379,736 96,899.730
Sl,l5J.l22.29S Sl.430,975.519
-25
Additional information on the County's capital assets can be found in note 6 to the basic financial
statements.
Long-term debt. Long-term debt is primarily comprised ofbonds of$473.3 million and State
Revolving Fund loans of $44.2 million. At the end ofthe current fiscal year, the County had total
bonded debt outstanding of$473.3 million. This entire amount was comprised of general
obligation bonds which are backed by the full faith and credit ofthe County.
The County's total bonded debt increased by $99.8 million (27 percent) during the current fiscal
year, which represents the general obligation bonds of$99 million that were issued in addition to
the $28.5 million in bond anticipation notes. These increases were offset by regularly scheduled
principal payments of$27.7 million.
At the end of the fiscal year, the County held an "AA+" rating from Standard & Poor's, an
"AA+" rating from Fitch and an "Aa2" rating from Moody's for general obligation debt.
State statutes limit the amount ofgeneral obligation debt the County may issue up to 15 percent
of the total assessed value of all county real property as established for tax purposes on the last
tax assessment rolls. The current debt limitation for 1he County is $6.6 billion, which is in excess
ofthe County's oulstanding general obligation debt. Currently the County's oulstanding debt
represents 7 percent ofour debt limitation.
Additional information on the County's long-term debt can be found in note I I to the basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUOGETS AND RATES
• The unemployment rate for the County at the end of the current fiscal year is at
approximately 3.8 percen1, which is .6 percent lower than at the end ofthe prior fiscal
year. 111is serves as an indication ofthe improving economic outlook for the island.
• The number of domestic and international visitors to the County for the current fiscal
year was approximately I. 74 million, with an approximately 15 percent increase from the
previous year's count of 1.51 million, which further demonstrates that the County is
continuing to benefit from improving economic conditions.
Al the end oflhe current fiscal year, unrestricted fund balance in the general fund was $142.3
million . The County has appropriated $36.4 million of this amount for spending in the 2024
fiscal year budget and the majority is included in the assigned portion of the fund balance.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview ofthe County's finances for all
those with an interest in the government's finances. Queslions concerning any of the information
provided in this report or requests for additional information should be addressed to the Director
of Finance, County ofHawai'i, 25 Aupuni Street, Suite 2103, Hilo, Hawai'i 96720.
-26
BASIC FINANCIAL STATEMENTS
-27
COUNTY OF HAWAII
Sta<emtnt ofNet Position
June )0, l02J
Prhnary Government
A~IJ
Current lisett
Cash and cl<h <qunol<nts (notes J and IS)
R-cash !lndeash --IS (nolt 3)
ln•=m<nlS (llOI< 3)
RH1ricttd invnlments(note ])
Raxi"ables, net (note'' )
Receivable rron1 1111provc~n1en1 d1StrH:1
(noies 4 •nd 11)
l111rmal balances (nole S)
Inventories
Prepaid expense•
Other
TOla! cum:nt auc:ts
Noncunienc. lll:sets.
lrtvcsuncnts (nole J)
RcscnC1cd invcsuncnt:J tnott: J)
Rcs.u1ctcd cash 11nd \'Mh t-'"-11\•11Jcnts {no1c.} and 15)
Rteeivab~ ff'o1n iJn1JrOVC n1cnt distr1.;t excluding
curren1 ponioo (notes 4 R1KI 11)
Oth<r
Qipnal assets (llOlcs 6. 8. 9 1nd IS)·
U1dl1y plan1 in service. net
Infrastructure asSd.1. net
Ground and stit 1n•provcmcnu4~
Build1nv imd 1n1po\"C1ncn1s.. net
Equipm<nl. net
Eascmcn.is. net
Prtlim1nary sutvty :ind 1nvcs11gadon charges
Land and i1npro\•cmcnl'
Right 10 use as!ICIJ, ntt
Subscription assets. oct
ConsU'UCllon \\'Ofk 1n proarcss
TOtal alp'JIAI ASSCtl. nt>I
Total noncurrcnt asKtS
TCM&llWdS
Dtfrn-td OucOo\rs of RtlOUrt'Q
OC'fened los! on '"runchna
Dcfttrtd outllo''' rehucd co pc:ns1ons and other
post cn1ployn1cn1 bl:nc(ils (nOlC'.S t4 and IS)
To1al dcrerrcd ou1nu,,1 of rc$0Urcts
Total Assets aod Dc(ctrcd Outflows orResources
Oovcn1111en1al
~c:tlvlh!J_
s UJ.12l.S94
H9.Ul.004
4.376.148
40.000.000
I 06.0S2.J 12
187.251
257.)92
8,614,054
·~.207
__4_78S,S4S
7U.428.207
12.946.<53
2.731.335
3,726.<107
2.739.416
285.691 .707
6S0.88A. I 15
60.819,955
22.317.344
390.407.932
17.784.351
J,536.865
118~74,480
l,j49,776J12
...!.111!?0,360
l.J60.JA&.S67
0.usiness·t>··p~
Activities
s 1.306.720
'46.196
19.279
(2S7,392)
11.916
1, 126.7 19
74.1 12
31.811
2.612,632
~1.970
753.877
105.256
3.545.546
3,619,658
4.746.377
3,406.426
ISS,297,074
I58,703,SOO
2,519,0521067 4,746J77
Total
s 215, I 29.J 14
339.UUOO
4.376.148
40.000.000
106.07 1.S91
187.251
8.614.0S4
506,123
4,18S.54S
789,5S...926
12.9-16.45]
2,7ll.33S
74.112
3.726.407
2.739.416
US.691 .707
JI.SI I
6SJ.496.747
60.9ll.9'2S
22.317.344
391.16 1.809
17.784.351
3.Sl6.86S
118.379,736
l.SS3.J22,l9S
1~75.S40,0t8
..ll..~094,944
3.406.426
m,297,0J.i
158,703,50<1
_2 Sll_,798,444
Compoocn1
Unit
s 42.925.843
11.000.000
9.842.579
1.638,946
79.184
210,923
6S.697,47S
6,000,000
888.llS
2.045.169
280.502.753
1.4 16.107
S..176.240
224,S48
14.115
s,~9,122
296.222.885
JOS.156.279
370,853.754
6,054,17'!_
6,0540176
376.907,930
(Con<inu<d)
• 28.
COUNTY OF HAWAii
Statrmrnt or Ntt Po.1itloa
J1M1<JO. 2023
(Concluded)
Primari· Govcrnmen1
LlilbilflH:s
ewrent ILabilitics
AcaiunlJ payable and ac<ni<d l1abili1ics
Accrued pl)Yoll
Advance coUc(t1ons · 1nltf'IC>VCmmttltal
lnt'1<St due on long-<""'1 debt
Boods and loan$ payal>lc, current ponion net
(oot<1 II ond " l
Compensated 11b$e11c-4..."8, <:uru.'t\t ponion (oote 11 )
Clairns aod J1Jdgmt111s., c:urr~nt ponioo
(n<M.:s 11, 13 and IS)
Leases and other finAncin,g agrcc:~nLS.
"'"""'portion (OOIC1 9 and 11)
Subscril"ion li1bil11y. cum:nt ponMlll
Umcllill costs poyabl<, """""' pomon
(nO!ts IOand II)
Customers' depo111s
Other
Total c:unl.'111 lihbilitlcs
Noncurrco1 lil\ll1l11ti::s
Bonds aod loaos pt)l\blc, 11<:1 (nolcs l I and lS)
Compcn$atcd abknCcs (nole 11)
Oaimsan<11udgmcn1s(notC1II,13and IS)
Leases and 01-htt financing agreements
InoRS 9 Ind II l
Subscnpoon l10"'l11y
Landfill..,...P11obk (notes 10 ond II)
Custoincrs' d(J)OS11J
Nce1 pens.ion habd1ty (ootcs 14 1t11d 15)
Nc1 OPEB liabdity (no1cs 14 and IS)
O<hcr
Tot3) noncuntnt llabil1111.-s
Toui.I ltabtlith..,
Deferred lnOo"'I or Rt$0Ul"('U
IXfencd 1nfl0\\'S ttiattd 10 pensions and Olhc::r
post<mplO)'ml'lll bc11cr.ts (notes 14 and IS)
Ocfcrml '"°"''~ ."'""( nolc 7) Total Ocfcm:d lnOo»-. ofResoutccs
To1al Liabilities and O.fcrr<d
lnOo'vs of Resources
Ntt Position
Ntt 1nv..:s1!ll4!nJ in c:npl1nl Bsscts
Rcstrktcd for
Capllal Pro,JCCtl
Debt SCIVo<:e (note 11 )
High,,·•>'~ strttU and ~doncd '-chides
Publo< ....... Of><ll spa«
Disaster a.nd mll'f'genctn
01hc:r
UnrestrictC"d
T04.al n<t pl)Sllion
Oovc-nuncntnl
Ac11vl11cs
s Jl.106.947
13.069.SJO
I " ,926.0))
b.840,951
68.230,997
10.867.SSO
10.239.573
5.$84,SlS
1.002,411
930,1138
8.613.181
272,412.~6
S IS.042.l89
37,705,537
32,Sl9.J77
19.827. 141
2.Jl6.412
9,946.162
585.026.054
268,17S.858
IH28,~59
.J..'L90, 007.8S9
J J62.420,4QS
181.673.445
6.267,'>ll
187,941~
1,950.361,773
1.027.992.548
67,405.839
S4.406.861
118.214.324
26.836.951
llA98,l59
4,773.$48
!742.508, 136)
s 568,690.294
rlusineSS·l)'J>C
Act1v111cs
s 74,564
7.534
3,l52
8.()90
S,150
99,290
99.290
T0<nl
s JI.ISi.Sii
13,069.$30
llS.9".S67
6,84~.JOJ
68.239.087
10.867,SSO
10,239.573
S.SS.C.SJS
1.002.411
930.US
8,6 18,931
272,S II ,836
SI S.042.389
37,70S.S37
l2.519.J77
19.827, 141
2.JJ6.482
9,946.162
585.026,054
268.17S.858
19,428,859
1,490,007,859
1,762.sl9.69S
111.673.••S
6.267,923
187.941~
99290 1,9SQ,,461,06l
3537.456 1.031,530,004
1.109,631
s • .647.087
67,40S.8J9
54,406,861
11 8.284.324
26.836.951
11,498.359
4,773.$48
!74 I J 98,SOS)
s 573,337,181
s S.103,135
2.03&.260
388.%9
6,290.009
686.835
189.000
14.128
3.126
200.887
14.913.849
68,415,419
1.237,095
111.000
213.J89
3.854
4.470,171
J0,899.325
7,812,470
11 3, 162.723
128.076.572
8.701 .691
2.361.844
11.063.535
139,140.107
222.033.011
IS.734.812
s237,767.823
Sec aC1:01npa11)1ng oolct 10 ttM: ba3ic fi11.11nc1al s'atc:mi:nts
• 29.
COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30, 2023
Functions/Programs
Primary government:
Governmental activities:
General government
Public safety
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Interest on long-tenn debt
Expenses
$ 102,326,533
231,891,768
132,580.459
115,580.138
36,267,778
64,095,411
13,181.506
Charges for
Services
$ 2,504,468
8.797,235
17,829,111
1,278,268
2,33 l.297
32,048,880
Program Revenues
Operating Capital
Granrs and Grants and
Contributions Contributions
$ 2,420,638 $ 10,649,919
33,146,521 36,561
7,605,513 121,422,240
95,426,802 7,2 16,000
1,358,276 513.862
1,732,26-0 98,700
Total governmental activities 695,923,593 64,789.259 141,690.010 139,937,282
Business-type activities:
Health, education and welfare 874 238 541,139 331,282
Toial primary government
Component unit:
Water (note 15)
$ 696.797,831 $ 65.330,398 s 142,021,292 $ 139.937,282
$ 64,567,957 $ 65.214,720 $ $ 10,573.824
General revenues:
Taxes:
Property taxes. levied for general purposes
Public service company taxes
County transient accomodations tax
Franchise taxes
Fuel taxes
General excise tax surcharge
Grants and contributions not restricted to specific programs
Investment earnings
Miscellaneous
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning offiscal year, as previously stated
Prior period adjustment (note 15)
Net position, beginning of fiscal year, as restated
Net position, end offiscal year
See accompanying noies 10 the basic financial statements.
-30
Net (Expense) Revenue and Changes in Net Assets
Primary Government
Governmental Business-type Component
Actjyltjes Activities UnU
s (86,751.508) s S (86,751.508) S
(1 89,911,451) (1 89.911.451 )
14,276.405 14.276.405
(11.659.068) (1 1.659.068)
(32.064.343) (32.064.343)
(30.21S.571) (l0.21S.571)
_ill.181.506) ----(13,181.506) ---
(349.507.042) (349.507.042)
(1,817) _ _ (1 ,81 7)
(349,507,04~ _ ("'".;.;l,.:,.,(349.508,859) -__.1,8 7) -
11.220,587
445.888.368 445.888.368
9.646.274 9.646,274
32.191.051 32,191,051
12.051,548 12.051.548
21.635 .977 2 1,635.977
69,548,494 69,548,494
812.837 81 2.837
11.101,680 2.104 11.103.784 798,456
1.438.202 1.438.202
( 129,548) 129,548 .
-
604.184.883 131.652 604.316.535 798 456
254.677.841 129.835 254.807.676 12,019.MJ
4.517.252 318,529,705 _1!8.0lS.418 314,012,453
__2,713.362
31410 I 214S3 4,517,252 318,529,705 225,748,780
s 568,690.294 $ 4,6471087 $ 573,337,381 s237,767,823
• 31 •
COUNTY OF HAWAii
Go\·ernmental funds
O•lance Shce1
Ju1>e 30, 2023
Haw·aii County 01her To1al
General
Capi1al
Projects
Mousing
A~nc~·
Govc::mmen1al
funds
G-0Vt.'flllllCO l<l1
Funds
ASS<IS
Cash and cash equivalen1s (note 3) s261,268,935 s 169.970.993 S 34.907.30 I s 157.513.369 s 623,660.598
Investments (no~e 3) 17,323.301 2,73 1.335 40,000,000 60.054.636
Receivables. net (note 4) 37.260.466 3,768.040 41.028.506
Due from other govemmenml fonds (note S) 2.599,IM 832.413 160,719 854,736 4A·17.032
Due from 01hcr nongovcrruncn1al rum.ls (note 5) 10.527 246.865 257.392
Receivables from other govcrnmcn1s (001e 4) 19.318,315 17,635,001 111.073 27.959.417 65,023.806
Inventories 8.614,054 8.614,0511
01her 4,009.623 1,197,770 819.025 1.992,750 8.019,168
Total assets s J~g J2l 8l8 S 122 l62 ~JZ ~ l~ llll8 !i:l ~ s232 ll~ J22 ~ 811 lil~ l'I~
l.i.1bifitit.s, Dtftrrtd Inflows ind fund B.thlnces
Liabilities:
Accoun1s payable $ 7.769.860 s 15,797.775 s 12 1.456 $ 7,4 17,856 s 3l.I06.9•17
Accrued payroll 11.112.547 228.871 1.728.112 I3.(JQ9.530
Due to Olher goven\mental funds (note 5) 657,098 422,646 88.939 3.278.349 4.<147.032
Ad\l'ance e<>lle<::tions-inlerg.ovemnlcntaJ
01her
93.054.332
5.649.067
997.403
1.889.14 1
21 .862.300
360,872
11.998
414 101
l 15.926.033
8.313.IMI
Total liabili1ies 11~.~~l.~ 19 1 06,96~ n22z 1Ja IH~Q.~I~ l7l.M1z.12~
Defemd Inflows of Resour~:
Unnvailablc revenue (noie 7) 37.260.49S 5,153.109 217.407 3.768,040 46.399.05 I
Deferred inflo\vs related to advooce collec1ions
orreal property laxes and liquor licenses 3.232.235 3.232.235
Defcned inflows related to leases 21~.Z2Q 511,562 I ~2~ J~ J,035.~8
TO!al dcfe~ inflo\vs of resources ~1.11~.122 ~ I~~ IQ9 7312§2 ~ l§MQ2 ~~~~l!.97·1
fund balances:
Nonspcndable: lnvenlOI)' & Prepaid 9.108.261 9. 108.26 1
Restricted for:
Debt service (no1e 11 ) 54.406.861 54,406.81> I
Hig.11\vays. streets and abandoned vehicles 61,320,538 118.284.324 179.604.81>2
Parks and recro:otionnl projects 28.709,82S 28.709.825
Public access open space 26,836.95 I 26.836.951
Disasler and e1nergencies 11.498.359 11.498.359
General & public safety facili1ies 40.015.216 40.0 15.216
01her 1.021.713 24. 193.588 l,332,3S8 2.419.477 28,967. 136
Co1nrniued to:
Budget stabitiza1Kln 8.125,043 8.125.0•13
Lo"-er (}una area 5.466.357 5.466.357
Housing. "'1>1al assistance and subsidy 11.278,880 1.364.283 I2.6<13.163
SanilatiOfl 21.SS6,141 21.556.141
Self insurance 1.280,272 1.280.272
Highways, streets and abandoned vehicles l,448.S4S 10.083. 114 I1.53 l.6S9
Parl<s and n.'Cfeationol projec<s 2,818,845 62.273 2.881.1 18
Zoning change iinpact mitigation (fair share)
0 1her 345,439
4.451,995
1.082.628 478,525
4,451.995
1.906.592
Assigned 10:
Subsequeon year's bodget 36.408,864 36.408.864
01her 12.951.200 4,066.258 17.017.-158
Unassigned 83.159.362 83.159.362
T01al fund balances -12!!,ZJM~ I~~ IQ7 438 IHll 2JB i14.IZ!,l~~ ~85 H~1~
To1al liabilities, deferred inno,vs. nnd fond balances sl2Q l2l 8~8 S12Z JQZ ~IZ Sltl QQB !d~ s2l2 ll~ 122 S811 Ul~.!.'a
See accon1panyirig notes 10 1hc bask financ1a1 stat~ncnts.
. 32.
COUNTY OF HAWAII
Reconciliation of the Governmental Funds Balance Sheet lo the Statement of Net Position
June 30, 2023
Tototl fund balances · go\'tntmcnhtl funds
Amounts reponcd for govern1ncn1al ac:1ivi1ics in 1he s1a1eme1u or
net position arc di1Teren1 because:
Capi1al asse1s used in govcrnmemal ac1ivi1ies: arc n0t financial
rcsour~s and 1hcrefore arc not reported in 1he funds. These assets
consist of:
Subscription asse1s, ru.>i
Land and lmprovemen1s
Infrastructure assets. net
Buildings and ilnprovc1nen1s. net
Equi1>men1, ne1
Easements, net
Righi to use assets, nc1
Construction \\'Ork in progress
1'otaJ capital assets. net
Deferred amounts on rcrunding. pension and -01hcr post e1nploymcnt benefits
are reported as deJCrred ourOo\VS of resources in 1hc govcmmcn1-widc
linancial Sl,atetnents butare not reported in the governmental fund s~1crnen1s
So1ne ofthe County's revenues will be collecicd after year·cnd bu1 af\!
not 3voilablc soon enough 10 pay IOr 1he current period's expendi1urcs
and 1hereforc •re unavailable in 1he funds. (no1c 7)
$()t"ne liabilities are not due and payable In the cum..~1 period and
therefore are no1 reported in the fw\ds. 'rhose tiabili1ies consis.1 01:
Subscription liabilily
Bonds and loans payable. net of receivable
from Uup1ove1nent diS-tric1
ln1cres-1 du-con tong·k'f1n de~
Leases and other lin.ancing agrCC1nen1s
Conlpensa1ed absences
Claims and judgmen1s
Landfill costs payable
Pollu1io11 rc1nediruion
Underground siorage 1ank linbili1y
Ne1 OPEB liability
Nc1 p<:nsion obliga1ion
Total long·term liabilities
Unrunonizcd gai11 on ret'unding
D<ferred amounts related to pension and olhcr pos1 employment benefi1s are
reported as deferred inflo\\'S ofresources in the government·\11ide linnncial
statements but nrc not are not reported in the g<>\'ern1ncn1a1 fund s1a1eo1ents
Ntl positio-n of govcr'nmtnhtl 11C'th1 itirs
See accom.pan.ying. notes 1u the basic financial s1atcm~nts
. 33.
S 585.S1S.49S
3,536.865
390,407.932
285,691,707
650.884.115
60.879.955
22.3 17.344
17.784.35 1
118.274.480
1.549.776.749
158,703,500
·16,399.05 I
(3.338,893)
(579,359,728)
(6.840,951)
(25,411.676)
(48.573,087)
(42,758.950)
(10.877.000)
( 17.388,676)
(1.775.000)
(268.175.858)
(58S.026.0S4)
( 1,589.525.873)
(565.183)
(18 1.673.445)
f 568,690,294
COUNTY OF HAWAII
Covenuorntal Fund.s
Statement of RC\ enuco. E.'q)Cnditurcs, and Changes in Fund Balan.-es
For the Fiscal Y.-or End<"d June 30. 2023
Ha\vaii County Other Tolal
Capital Mousing Oovcrnmcntnl Governmental
General Proiccts /\~enc~ Funds Funds
Revtnucs
Properly taxes s 441.715.297 $ $ $ $ 441.7 15.297
f'>ublic service company ta..xcs 9.646.274 9.646.274
County trunsicnt actomodtuioos tax 33.91 1,025 33.9 1 l.025
Fuel taxes 21,635,977 21.635,977
Public utilily franchise taxes 12,0Sl,S48 12,0Sl.548
Liccn:;cs and pcrmils 12.057.244 16,S27,247 28,584.491
General cxci~ lax surcharge 69,S48.494 69.548.4-U
lntcrgo•<mmtntal 108,322.627 13.462.789 34.205.858 3,718.949 IS9.710.223
Ch:ltges for SM iccs 1.826,619 30.386,438 32,213.057
lnvcsimcnt comings {loss) I l.96S.871 {57.270) l0,564 17',469 12.094.634
Other __2.44S,20Q. 587.465 688,804 1,139,882 4.861.35 I
Tocal revenues 621.89()1157 13,992,984 34~5.226 155.184.004 825.972,371
Expcndllures
Current:
(lcncrol government 58,575, I 27 3,075,580 61.650.707
f'ublic safety I 52,760.388 11,783,857 164.544.245
1 llghwoys ond sireets 4.714,426 44,911,888 49.626.314
I lcuhh. education and '"elfare 66.944 .384 35.705,974 1,256.477 103,906.835
Cuhuro and •=~'11tion 26.600,907 1,541.474 28. 142.381
S~nitation I, I 56.595 Sl.8S8.018 H.014.613
Pension and mirement
conlributions (nole 14) 63.292,134 1.139,754 9,036.ISS 73A68.046
EmplO)etS' h<ahh inSUnlI>Ce 16.867.012 433,025 3.280,ISJ 20,580.190
Olh<'f post<mpfoyment benefits 42,910.000 42.910.000
01hcr 7.405,957 SS0,683 91 .420 2,322,873 10.370.933
Debi service:
Princlpul 4,527.614 308,036 J3,S62,126 38.397.776
Interest 607.444 52,111 17,013,797 17,673.352
Capitnl outlay 14 ,699.226 89,989,073 104,688.299
To1ol expenditures 461 .061,2 14 90,539,756 37.730.320 179,642,401 768.973.691
F.xc.:ss (dellcirocy) ofrevenues
over (under) expenditures 160.828.943 (76,546,772) (2,825,094) (24,4S81397) 56.998.680
(Continued)
. 34.
COUNTY OF MAWAll
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
for the Fiscal Year Ended June 30, 2023
(Concluded)
General
Capital
ProjeclS
Hawaii County
Housing
Agcnc~
Other
Governmental
Funds
Total
Govcmmcntul
Funds
Other Financing Sources (Uses)
Sale of asSCls
Increase i1\ rig.ht·to·use and subscription
assets (notes 8. 9. and II)
State Revolving Fund loans (note 11)
Issuance of Oond Anticipation Notes
Issuance of bonds (note 11)
Premium on bonds (note 11 )
Transfers in (note 5)
Transfers out (note 5)
Total other financing ;;ou1·ces (uses)
Net change in fund balan~C"S
Fund balances at beginning of fisca l )'car
Fund balances at end of fiscal year
$ 24,501
9,346,656
(9 1,024.433)
(81,653,276)
79, 175,667
111.559,797
$ 190,735.464
$
1,023.631
28,500,000
99,000,000
11.879.363
32,672.340
173,075.334
96,528.562
71.578.876
s 168, 107,438
$
$
831,909
11.144.320
11.976.229
9.151,135
3,460,103
12.611.238
$
I ,S23.03S
88,562,607
~4 1 ,354,834)
48.730,808
24.272.411
189,848,944
$ 214,121.355
$ 24.501
11.701,600
1,023,63 1
28.500.000
99.000.000
11 ,879.363
132.379.267
( 132.379.267)
152. I29J>9S
209.127,775
376.447.720
$ 585.575,495
Sec ~cornpanyi"g no;cs 10 the basic llnuncinJ stinetnents.
-35
COUNTY OF HAWAii
Reconciliation of the Change in Fund Balances ofGovernmental funds
to the Statement or Activities
l'or the Fiscal Year £oded June 30, 2023
Net change In fund balances -total governmental fund$
Anlounts reported for governmental activities in the sra1cmc.>nt of activities arc
dillcrent lx.'<'ausc:
Capital outlays are reponcd as e.,penditurcs in governmental funds.
Ho,vever, in lhe statement of activities~ the cost orcapital as~ts is
allocaicd over their estimated useful lives as depredation and amor1ization
expense. In the current pc.'fiod, these amounlS are:
Capital outlay
Dedicated and contributed propeny
Subscription assets
Depreciation and amortization expense and loss on disposals
£xccss of capital ou\lay over depreciation and anlortization expense
Borrowings provide current linancial resources to governmental funds;
ho\vevcr. issuing debt increases lo11g-term liabilities in the statement
of net position. In the cun·cnt period. assclS linanced through:
General obligation bonds
Premium on bond issuance
Bond anticipation notes
State Revolving fund loans
Subscription liabilities
Leases and other linancing agreements
Tollll debt proceeds
Repa)rmcnt of long~tcnn debt is reported as an c."pendilurc in goven1mcntal
funds. but the repayment reduces long-term liabilities in the statement or
net position. Jn the current year, these amounts consist of;
Bond principal retirement
Stale Revolving Fund loan repayments
Subscription payments
Lease and other linancing agreements payments
Total long-term debt repayment
Because some revenues \\•i ll not be collected for several 1non1hs a.Iler the
County's liseal year end. they arc not considered "available" revenues and
arc "deferred" in the govemmcmal funds. Unavailable revenues increased by
this amount this year.
s 209.127,775
100,697,048
116,665,710
4,291,773
(99,297,976)
122,356,555
(99,000,000)
( 11 ,879,363)
(28,500,000)
( 1,023,631)
(4,291,773)
(7,409,827)
( 152, 104,594)
27,494,847
3,629,445
952.880
6.320,604
38,397,776
7, 124.87 1
(Continued)
. 36.
COUNTY OF HA WAil
Reconciliation ofthe Change in Fund Balances ofGovernmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30. 2023
(Concluded)
Some ite1ns reponed in the statcn1ent ofactivities do not involve current
financial resources and therefore arc not reporte<I as expenditures in
governmental funds. Thes.: activities are:
Net increase in compensated abscnct.-s
Net increase in clain-1s and judgments
Net decrease in landfill closure/postclosurc"""' costs
Net decrease in pollution remediation costs
Amortiiation of premium from bond issuance
Amortization ofdeferred loss on refunding
Amonization ofgain on refunding
Net increa.se in accrued interest
Net decrease IO expenses related to net OPEB liability
Net decrease to expenses related to pension and salaric.s and \vagcs
s (1,487,396)
(20,227,972)
194,000
86.324
6.006,661
(657,282)
102,761
(960.294)
25,424,682
2 1.293,974
Net additional expenses 29.775.458
Change in net position of govtmmental acli\lities$ 254.677.841
Sce accornpan)·ing 110tes to the basic financial statements.
-37
COUNTY OF HAWAii
General Fund
Statement of Rt\ en-. Expcndi1urcs. and Cha11ges in Fund Balaooe
Budgc1 and Actual (6udgeiary Basis)
For lhc Fiscal Vear Ended June 30. 2023
ACIWll Vuriancc
Original Final (Budecllli; Posi1h·c
Bud&cl Budge1 Dosi•! !Negalivej
Revenue-1:
~raxc:s and assessments:
Propcny 1axes S 424.009.98 I s 424.074.981 s 44 1.71$.297 s 17.640.316
Public service c-0mpany taxes 8.800.000 8.800.000 9.646.274 846.274
County transient accomodation tax 19.000.000 19.000.000 33.91 l.02S 14.91 l.02S
Toial taxes and assessments 4S 1.809.98 l 451.874.981 48S.272.S96 33.397.61S
Lietnses and permits:
Nonbusiness licenses and permits 4.253.200 4.253.200 6.547.985 2.294.785
Business licenses 2.219.7SJ 2.219.7S3 2.033.SS7 (186.196)
Strtttusc 3.182.763 J.182.763 3.47S.702 292.939
Tooil liccnscs and pennits 9.655.716 9.6S5.716 12.057.244 2.401.528
lmergovcmmental:
l' cderal:
Programs for 1hc agc'CI 2.646.904 2.646.904 1.243.670 ( 1.403.234)
Communily developmenl block gran1s 2.775.987 2.775.987
l.a\v cnfol'(:emcnl 4.93 1.323 5.979.401 2.90 1.772 (3.077.629)
0 1hcr 54.S81.391 S8.l 14.842 52.400.470 (5.7 14.372)
To1al federal 62.159.618 69.517. 134 59.32 1.899 !I0.19S.23Sl
State:
Emerge~y medical services 23.248.359 23.248359 23.80S.327 556.968
Ochet 9.226.985 12.327.270 8.456.917 !].870.3S3l
Tocal S1a1c 32.475.344 35.575.629 32.262.244 p.3ll.385)
Tocal in1ergovemmcn1al rc-.nuc 94.634.962 105.092.763 91.584.143 !13.508.620)
Charges for services:
General government 3.823.301 3.823.)01 3.998.123 174.822
Culture and rccteation 1.337.650 1.337.650 1.345.726 8.076
High\vays and streets 379.000 379.000 157.238 (22 1.762)
Public safely 82.400 82.400 68.428 p 3.972)
Total charges for services S,622,351 5.622.35 1 S.569.S IS !52.836)
Fines and forfei1ures 2.16 1.300 ~161.300 607.800 p.553.500)
RenIS 153,500 153.SOO 139.799 ( 13.701)
(Continued)
• 38.
COUNTY OF HA WAii
General fued
Statement orR.-onues. Expenditures. a•d Changes in Fund Bal311CC.
Budgel and Actual (8udge1ary Basis)
For the fiscal Year F.nded June 30. 2023
Actual Variance
Original final (8udgc1ar)• Positive
Budget Budget llasis) (NC23tl\'C)
Rtvenurs (continued):
Interest and penalties $ 100,000 $ 700.000 s 9~23.49 1 $ 8.823.491
Miscellaneous 4,397.2 19 5.007.219 4.613.832 p93.387)
Total re"enues 569.135.029 580.267.830 609.368.420 29.100.590
Elptndltures:
CurT<nt:
O<nent go'cmmcnt:
Finance: 15.167.907 15.167.907 12.365.339 2.802.568
General government building 8.804.754 8-977.421 8.341.074 636.H7
Legislative 4.970.076 4.073.891 3.S 1 l.632 560.259
Automotive equipment S.lS l.916 5.166.808 4..192.693 574.115
L1:t\\' 3.717.674 3.717.674 3.057.504 660.1 70
Research and development 3.967.358 5.566.758 4.759.189 807.569
l'lanning and zoning 5.182.326 S.182.326 4.781.313 401.013
Mayor's oOice 1.7 16.775 1.867.275 1.770.807 96.468
Engineering 770.364 810.364 787.9 19 22.445
lnformalion t<chnology 4.611.078 4.6 11.078 4.032. 1 JI 578.947
Human resources 2.58 1.780 2.581.780 2.260.1 $4 321.626
Public works adminis1ration 1.606.601 1.546.601 1.397.602 148.999
F.lc:ctions l.218J 14 1.218.314 895.117 323.197
County ouditor 762. 104 784.874 61S.5S6 109.318
Tocal gcncral government 60.429.027 61.273.071 53.230.030 8.043.().l I
l'llbli<: saftt> :
Police dq>artment 76.S61.040 80.202.118 n.6S7.981 7.S44.137
Fire department 62.04S.421 63.841.960 61.178.614 2.663.346
Prosecuting attorney 11.130.953 11 .783.836 9.142.763 2.641.073
Protective inspection 3.934.432 3.966.873 3.276.61$ 690.2S8
Liquor conlrol 2.200.753 2.442.943 2.178.6S8 264.28S
Flnod eonlrol 330,000 330.000 330.000
Civil defense agency 2.602.521 2.628.S79 2.289.61S 338.964 Animal control 3,414,013 3414.013 211ss.012 1.229.001
Total public safety 162.219.133 168.6 10322 IS3.2.19.258 IS.371.064
1 liahways and Slreets:
M3SS tronsit 9,128.181 12.1n,9S4 7,711.646 S.061.308
(Conlinued)
• 39.
COUNTY OF HAWAII
Central fuwd
Statcmen1 ofRevenues. Ex_pcndilurn. and Chaiiges in Fund Balance -
Budgct and Ac1ual (Budgetary Basis)
For !he Fiscal Year Ended June 30. 2023
Original
Budget
Final
Budge!
Actual
(BudgclBI)'
Ba>is)
Variance
Positive
(Ncga1ive)
Expondllurts (contlRUtd):
Current (conlinued):
I leahh. educalion and wetfare:
Elderly ac1ivi1ies
Office ofaging
Educalion
Social programs
Homclo.sncss
Cemeteries
Ph} sical examination
$ 3.988.018
4.702.212
Sl.650
3.1 IS.000
9.950.000
449.547
133.826
$ 3.988.018
4.71 0.2 12
52.6SQ
3.180.000
9.950.000
474.872
133.826
s 2.841.1 57
2.872.647
9.642
3.127.500
9.753.603
4S).8S2
132.797
$ I,146.861
1.837.565
43.008
52.500
196.397
21.020
1.029
Total health. educatioo and wcl fare 22.391.253 22.489.578 19.191.198 3.298.380
Cuhure and recreation:
Community music
Organized recreation:
Maintenance
309.729
14.150.368
309.729
14.028.1 33
24 1.728
13.981.364
68.001
46.769
Recreation
Aquatics
I loolulu park complex
Administration
Children's zoo
Summer/Intersession
Cullurc and ans
Eldet1y activities administration
3.480.890
2.920.579
1.212.962
4.48 1.761
946.318
571.185
496.228
893.343
3.497.389
2.792.307
1.276.991
4.771.497
979.390
576.185
515.228
1.072.517
3.349.674
2.161.448
1.260.431
4.586.280
937.1 SJ
354.079
472.67S
1.039.162
147.715
630.859
16.560
185.217
42.237
222.106
42..SS3
33.3SS
Total culture and recrea1ion 29.463.363 29.819.366 28.383.994 1.435.372
Sonll81ioo:
Environmental managcmcnl 1,820.395 1.820.395 1.462.954 357.441
Pension and retirement contribulions
Employees' heahh insur1111cc
Other pos1cmploymen1 benefits
Other
Total currcn1
71.782.132
20.000,000
42.946.000
67.296.679
487.476.163
71.782.132
20.000.000
42.946.000
63.843.909
495.357.727
64.426.755
16.968.769
42.801.803
47.98'1.273
435.405.680
7.355.377
3.031.231
144.197
IS.854.636
59.952.047
(Continued)
-40
COUNTY Of HAWAII
Gtn~ral Fu nd
SlalcmcntofRevenues. Expenditures. Wld Changes in Fund Bal11nec.
Budget and Actual (Du<lgetary Oasis)
For the Fiscal Year Ended June 30. 2023
(ConcluJod)
Actual Varianc..•
onainal
Bu<*t
f'inal
8udRel
<Budg<W')
Oasis)
Poshhc
!N~thcl
Esp<nditura (tontin•td):
Capital Outla)·:
Community Development Block
grants (HUD) s 150.000 s 3.275.987 $ 2.650.243 $ 625.744
HOME Program 200.000 205.000 41.200 163.800
Total capital outlay 350.000 3.480.987 2.691.443 789.544
Total c.pwditU1'<$ 487.826.163 498.838.714 438.097.123 60.741.S91
Excess ofrn-enues over c.xptnditures 81.308.866 81.429.116 171.271.297 89.842.1 81
Othtr financinc usn:
Transfers out:
Housing Fund (11.141.320) (l l.144.320) (11 .144.3201
Solid Waste Fund (28.916,044) (28.916.044) (28.916.044)
Sewer Fund (3.446.SS3l (3.446.S5J) (3.446.5531
Golf Course Fund (790.367) (790.367) (790.367)
Capital Project Fund (I (9.750) ( 119.750)
Self Insurance Fund ( 1.000.000) ( 1.000.000) ( 1.000.000)
Disastcrlf.mergm<:) Fund (4,260.000) (4.373.000) (4.359.277) 13.723
Public Access. Open Spoc:<. 11nd Natural
Resources Preservation Fund ( 8.588.000) (8.862.000) (8.834.3061 27.694
Public Access. Open Spocc. •nd N11ural
Resources Prc.scrvAtion Maintenance Fund (1.073.5001 (686.SOOI (656.897) 29.603
Budget Stabilization Fund (2'0.000) (250.0001 (250,0001
Comm Benefit Fund (250.0001 (250.000) 250.000
Debt Service Fund !49.499.130) !49.499.130) !49.499.130)
T018l transfers OUI !109.21 4.914) (109.337.664) !109.0 16.644) 321.020
Total other financing uses !109.214,914) !109.337.664) ! 109.016.644) 321.020
F..xeess (deficienc)•) or revenues
over (under) expenditures and other uses
Fund balance at beginning ortiscol year
Fund balance Bl end or fi scal year
(27.906.048)
I I 11SS9.797
s 83M3.749 $
(27.908.548)
111 .559.797
83.651.249
62.254.653
111 .559.797
s 173.814.450
90.163.201
$ 90.163.201
Sec accompanying notes to the basic finaticiaJ statements.
• 41 •
COUNTY 01' HAWAII
Hawa ii County Houing Ag*'lcy
Schedule orRevenues. Expcndilures. and Changes in Fund Balance •
Budaei and AC1ual (BudgClar)' Basis)
For the Fiscal Ycor Ended June 30. 2023
Aclual
Origi03I
Budge1
Final
Budge1
(f!udgetary
Basis)
Rcvcnut!s:
ln1ergovem1nen1al ..
Federal· HUD· Voucher program
Stoic· Housing grani
Investment earnings
Resale orpropen)
Other
s 27.691.S37
6.700
83S.412
s 42.691.537
2.000.000
81.700
8JS.412
s 36.082.209
10.Sf>4
S0.000
6)8.803
Total revenues 28.S33.649 45.608.649 36.781.S76
Expcndiiurcs:
I lcahh. cduca1lon and wel rare
Pension and retin:mcnt contributions
hin ploy<es' heahh insurance
39.080.S69
1.130.185
464.215
57.577.054
1.166.903
464.215
37.125.234
1.134.312
433.439
To1al cxpcndilures 40.674.9(19 59.208.172 38.692.985
Deficiency or revenues under expendilures ( 12.141.320) ( 13.599.523) (1.91 1.409)
()t h~r tinancing sources .. transfers in ..
Tninsrers in. General Fund 11.141.320 11.144.320 11.144.320
Excess I deficiency) of revenues and oth<r sour
o• er (under) expendiiures
ces
(1.000.000) (2.455.203) 9.232.911
Fund balancr ot beginning offtscal )'""' 3.460.103 3.460.103 3.460.103
Fund balance 111 end orliscal year s 2.460.10) s 1.004.900 s 12.693.01~
See oc<:<impan~ing independen( audi""'' rqiort.
Variance
Positive
(Ncga1ivc)
s ((>.609.328)
(2.000.000)
(71.1 36)
50.000
(196.609)
t8.&21.on1
20.451.820
32.591
30.776
20.S I S.1 87
I 1.688.114
11.688.114
s 11.688.114
• 42
COUNTY OF HAWAii
Proprl.,tary Funds
Statement ofNet Position
June 30. 2023
Assets
Current assets:
Cash and cash equivalents (note 3)
Restricted cash and cash equivalents (note 3)
Imprest fund (note 3)
Receivables. net (note 4)
Prepaid expenses
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents (note 3)
Capital assets (note 6):
Land and site improvements
Buildings and equipment
Less accumulated depreciation
Construction \YOrk in progress
Total capital assets
Total noncurrent assets
Total assets
Liabllitlts
Current liabilities:
Accounts payable
Due to other governmental funds (note 5)
Security deposits payable from restricted assets
Unearned revenue
Interest payable
Notes pa~able. current portion (note 11)
Other liabilities
Total current liabilities
Net Position
Net investment in capital assets
Unrestricted
Total net position
See accompanying notes to the basic financial statentents.
Business~typc Activities~
Enterprise Funds
Kulaimano
Elderly
Housing
Projec1
s 743.390
15.023
50
10.767
11.916
786.146
511.000
3.083..216
(1.509.591)
2.084.625
2.084.625
2.870.771
20.1 93
254.222
15.021
3,352
5.750
298.538
2.084.625
487,608
s 2.572.233
Ouli Ekahi
Affordable
Housing
Project Total
s 558.180
31.173
100
8.512
597.965
s 1.306.570
46.196
ISO
19.279
11.916
1.384.11 1
74.11 2 74.112
515.727
1.056.951
(217.013)
105.256
1.460.921
1.535.033
2.132.998
1.026.727
4.140.167
( 1.726.604)
105.256
3.545.546
3.619.658
5.003.769
11.563
3.170
27. 787
7.534
8.090
58.144
31.756
257.392
42.808
7.534
3.352
8.090
5.150
356.682
1.452.831
622.023
$ 2.074,854
3.537.456
l,109.631
s 4.647.087
-43
COUNTY OF HAWAII
Proprie11ry Fnnds
Statement of Re\'Cnues. Ex~nses.and Changes in fund el Position
for the fiscal Year L:nded June 30. 2023
Business-type Activities-
Entc!l!!i"' Funds
Operating revenues:
Rental receipts from tenants
Rental subsidy from federal government. ll U()
Laundry reeei1>1s
Other
Total operating revenues
Operalina expenoes:
Utilities
Genera.I and administration
Maint.,,,anc:c 1tnd repairs
Oeprecia1ion (~e 6)
Total Of>l'1'Ming expenses
Operating inoome
Nonopcrating revenues (expenses):
lnves1ment income
Interest expense
Loss on disposal ofnx..t assecs
Total nonoperoting revenues (expenses)
Capital contributions
Cootributions
Chllngc in net position
Net position. beginnin& offiscal year
Net position. <nd of llscal year
See ae<:ompan)'ing notes to the basic fmanciaJ Sllttmcnu .
Kulaimano
Eldcrli
Housing
Pro~
s 170.45-0
331.282
701
1.622
S04.0SS
59.929
239.670
96.665
104.664
500.928
3.127
219
(12.0981
(5.104)
116.983)
24.292
10.436
2.561.797
$ 2.572.233
Ouli Ekahl
A ITordable
Housln&
Project Total
s 360.311
8.0SS
368.366
s 530.761
331.282
701
9.677
872.421
118.224
159.603
43.S9S
34.301
3SS.723
12.643
178.153
399.273
140.260
138.965
8S6.651
15.770
I.SSS
j385 )
l.SOO
2.104
( 12.098)
!S.489)
(15.48.J)
IOS.2S6
119.399
1.9SS.4SS
s 2.074.8S4
129.S48
129.835
4.517.252
$ 4.647.087
• 44.
----
COUNTY OF HAWAII
Proprlera.ry F•nds
Suutment orCash Flo"s
For the rucal Yw Ended June 30. 2023
Business-type Acti' hies.
En•c!J?ri'"' I· unds
Kulaimano Ouli Ekohi
Elderly Alfordablc
Housin11 I lousin&
Projcet Project Total
Cash Flows from Optraring Activities
RccciplS from 1cnan1S s 164.8S6 s 374.873 $ S39.n9
Receipts from federal govemmenl -HUD 33 1..282 331.282
Paymen1s 10 suppliers for goods and services (395.946) !)22.27Sl (7 18.221)
Net cash pro~by operating acth itifl 100.192 S2..S98 IS2.790
CHh Flows from No.<1pil1.I f'laHring A<tMtlH
Transfers 001 10 other fonds (91.716) (91.7161
Net cash used in noncapital financing oalvitic:s (91.7161 (91.716)
Cash Flows rro,. Capital and Rellted FiaORtlnc A<tMtlts
Principal paid on no1es payable (33.4111 (33.41 1 )
Purchase ofcapital asselS jS.098) (S.098)
Nel ca.~ used in capital and related Onancing ac1ivllies (38.S09) (38.509)
Cash Flows fr<>m lnvesliae Activities
Interest on investments 219 l.88S 2.10~
Net cash provided by investini: activities 219 l.88S 2.104
Net increase in cash and cash equivalents 8.69.S IS.974 24.669
Cash and cash equivalents at beginning of n..cal yc>r (includini:
restricted cash and cash equivalents) 7S4.768 647.S91 1.402JS9
Cash and cash equivalents at end of fiscal )'8r (includin&
rcstrictt'd cash and cash equivalents) s 763.463 s 663.56.S s 1.427.028
Rttucllillloa ofOperating ln<0Rlt to Ntt Cash
Provld«d by Operatiag Aetivlllts
Operating income 3. 127 s 12.643 s 15.770
Adjustments 10 reconcile operating income 10 net cash
provided by operating activities:
Depreciation expense 104.664 34.301 138.965
Change in asselS and liabilities:
Receivables. net (6.485) 4.3S3 (2.132)
Prepaid expenses (8.004) (8.004)
Account$ and other payables 10.ISS (2.066) 8.089
Unearned revenue (3.26S) 3.367 102
Net cash provided by operating ac1ivl1M.-s s 100.192 s 52.S98 s 152.790
Supplemental Disclosure ofNoncash Capital and Rrlated
Financing Activilies
Capital contributions 24.292 S I OS.256 S 129.548
Sec acrocnpanying notes to the basic financial Statements..
• 45.
COUNTY OF HAWAii
Fiduciary Funds
Statement or fiduciary Net Position
June 30. 2023
Private-..
Purpose
Trusts
AsstIS
Cash and cash equivalents (note 3) s 628.348
Investments (note 3) 1.897.197
Receivables:
Due from other cuSlodial funds
Other receivables
Total receivables
Total 3SSCl~ 2.S25.545
Liabilities
Accrued liabilities
Due to other custodial funds
Advances payable
Total liabillties
Ntt Position
Restricted for other panics 2.525.545
Total net position s 2.525.545
See accompanying notes 10 the basic financial statements.
Custodial
Funds
s 5.397.680
6.S35
80.327
86.862
5.484.542
2.271.1 33
6.535
56.649
2.334.317
3.150.225
s 3.150.225
• 46.
COUNTY OF HAWAII
Fiduciary Funds
Su11emen1 ofChanges in Fiduciary N<t Position
For lhc Fiscal Year Ended June 30. 2023
Private
Pull)OSc Cus1odial
TNSIS Funds
Addklou
Tax coll«1ions for slllte s s 27.4S8.&JS
Special wessmen1 coll«cions 1.84S.663
Developer dq>OSlt l.S02.619
Employee collections 474.461
Lapsed checks 54.988
Collec1ions from vehicle r<gis1ra1ions and llccnS<'s 193.629
lnvc-Slmcnt earnings 122.SOS 38.623
Total addiiions 122.508 31.S68.818
Dedualoas
Grant payments 27.934
Pa)mcnt of111Xcs to >taie 26.265.121
Payments to state. not for profiis and
improvement district l.S9S.088
Con1ribu1ions to debt repayment 26S.655
Ad1ninistmtive charges l.23S.303
Community focillty distric:t expenses 1.572.612
Reissuancc ofchecks 43.559
Reimbursements lO cmployttS 465.807
lnv<$lmcnl Fees 14.813
Other BO.Ill
rotal dcduaions 42.747 31.523.277
Chan11e in net posi1ion 79.761 45.541
Nt1 posiiion. beginning offiscal year 2.445.784 3.104.684
Nel poshion. end of fiscal year s 2.525.545 s 3.150.225
Sec ac:compan)'ing noies 10 the basi..: financia l1uncmcn1s,
• 47.
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30. 2023
The accounting policies ofthe County of Hawai'i (the County) confonn to U.S. generally accepted
accounting principles (GAAP) as applicable to local governmental units. The following notes to
the basic financia l statements are an integral part ofthe County's Annual Comprehensive Financial
Report (ACFR).
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Financial Reporting Entity
The County has implemented Governmental Accounting Standards Board Statement No. 14,
The Financial Reporting Entity (GASS Statement No. 14), Statement No. 39, Deter111i11i11g
Whether Certain Orgmtizations Are Componeflf Units (GASS Statement No. 39) and
Statement No. 61 , The Fi11ancial Reporting Entity: Onmibus a11 ame11dme11t ofGASB
S1areme111s No. U and J./ (GASS Statement No. 61). All organizations, activities or functions
that meet the criteria in GASB Statement No. 14, as amended, No. 39 and No. 61 for inclusion
in the reporting entity are included in the County's basic financial statements.
Primary Government The County operates under the Mayor-Council fonn ofgovernment
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 fo llowing functions: general
governmen~ public safety: highways and streets: sanitation; health, education and '"el fa re:
culture and recreation: pension and retirement cont.ributions; health fund; miscellaneous;
capital outlay; and debt service. The State of Hawai ' i (the State) assumes full responsibility
for several major functions usually perfonned by local governments, including education,
welfare, health and j udicial fu nctions. There arc no separate city, county or township
governments nor any school districts, special districts. authorities or public corporations with
overlapping authority.
GASS Statement o. 14. as amended, defines component units as legally separate
organi:tations for which the elected officials ofthe primary government are financially
accountable or for which the primary government may detennine. through exercise of
management's professional judgment, that the inclusion ofan organization that does not meet
the fi nancial accountability criteria is necessary in order to prevent the reporting entity•s
financial statements from being mis.leading. "Financial accountability" is the level of
accountability that exists if a primary government appoints a voting majority ofan
organization's governing board or if the organization is fiscally dependent on the primary
government and is either able to impose its will on that organization or there is a potential for
the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. A primary government has the ability to impose its will on an
organization if it can significantly influence the programs, projects. activities or level of
services perfonned or provided by the organization. An organization has a financial benefit or
burden relationship with the primary government ifany one ofthree conditions exist: ( l) 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
• 48
COUNTY OF HAWAI'!
Notes to the Basic Financial Sta1·cmcnts
June 30, 2023
finance the deficits of, or provide financial support to, the organization; or (3) The primary
government is obligated in some manner for the debt ofthe organization.
As required by GAAP as set forth in GASB Statement No. 14, No. 39 and No. 61, these basic
financial statements present the County of Hawai'i (the primary government) and its
component unit, the Department of Water Supply (the Department). This component unit is
included in the County's reporting entity because of its financial relationship with the County.
Di$cretely Presellfetl Compo11e11t U11i1 The component unit column in the basic financial
statements includes the financial data of the Department, a legally independent agency of the
County that is accounted for as an enterprise fund. It is reported in a separate column to
emphasize that it is legally separate from the County. The members ofthe Water Board, the
governing body of the Department, are appointed by the Mayor of the County and confirmed
by the County Council. The Department is granted corporate powers by state statute and the
County Charter. Although the County does not have the authority to approve or modify the
Department's operational and capital budgets, the County has issued bonds on the
Department's behalf that are general obligations of the County. Because the County is
obligated to repay these bonds in the event of default by the Department, the County is
financially accountable for the debts ofthe Department. See Note 15 for component unit
disclosures for the Department. Complete financial statements of the Department can be
obtained from the Department of Water Supply, 345 Kekoanao'a Street, Suite 20, Hilo,
Hawai'i 96720.
Basic Financial Statements
The basic financial statements include both government-wide (based on the County as a
whole) and fund financial statements. Both the government-wide and fund financial
statements (within the basic financial statements) categorize primary activities as either
governmental or business-type. In the government-wide statement of net position, both the
governmental and business-type activities columns (a) are presented on a consolidated basis
by column, (b) and are reflected, on a full accrual, econom ic resource basis, which
incorporates long-tenn assets and receivables as well as long-term debt and obligations.
The government-wide statement ofactivities reflects both the gross and net costs per
functional category (general government, public safety, highways and streets, etc.) which are
otherwise being supported by general government revenues (property taxes, certain
intergovernmental revenues, etc.). The statement ofactivities reduces gross expenses
(including depreciation) by related program revenues, operating and capital grants. The
program revenues must be directly associated with the function (general government, public
safety, highways and streets, etc.) or a business-type activity. The operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital grants
column reflects capital-specific grants. The net cost (by function or business-type activity) is
nonnally covered by general revenues.
-49
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
The government-wide focus is more on the sustainability ofthe County as an entity and the
change in aggregate financial position resulting from the activities of the fiscal period.
The fund financial statements' emphasis is on the major funds in either the governmental or
business-type categories. Nonmajor funds (by category) are summarized into a single column .
The governmental funds in the fund financial statements are presented using the current
financial resource focus and modified accrual basis ofaccounting. This is the manner in
which these funds are nonnally budgeted. This presentation is deemed most appropriate to (a)
demonstrate legal and covenant compliance, (b) demonstrate the source and use ofliquid
resources, and (c) demonstrate how the County 's actual experience confonns to the budget
fiscal plan. Since the governmental fund statements are presented using a different
measurement focus and basis ofaccounting than the government-wide statements'
governmental activities column, a reconciliation is presented on the page following each
statement, which briefly explains the adjustments necessary to transfonn the fund based
finan cial statements into the governmental activities column ofthe government-wide
presentation.
The Cou nty's fiduciary funds are presented in the fund financial statements by type (private
purpose and custodial). Since by definition these assets are being held for the benefit ofa
third party {private parties. srare government, etc.) and cannot be used to address activities or
obligations ofthe government. these funds are not incorporated into the government-wide
statements.
Government-M'ide andfundfinancial statemtmt.f-The government-wide financial
statements (i.e., the statement of net position and the statement ofactivities) report
infonnation on all ofthe non fiduciary activities ofthe primary government and its component
unit. The effect ofinterfund activity has been removed from these statements during the
process of incorporating fund data but interfund services provided and used have not been
eliminated in the process ofconsolidation. Governmental activities. which normally are
supponed by taxes and intergovernmental revenues, are reponed separately from business
type activities. which rely to a signi ficant extent on fees and charges for support. Likewise,
the primary government is reported separately from certain legally separate component units
for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses ofa given
func tion or segment are offset by program revenues. Direct expenses are those that arc clearly
identifiable with a specific function or segment. Program revenues include (a) charges to
customers or applicants who purchase, use, or directly benefit from goods. services. or
privileges provided by a given function or segment and (b) grants and contributions that arc
restricted to meeting the operational or capital requirements ofa panicular funct ion or
segment. Taxes and other items not included among program revenues are reported instelld as
general revenues.
. 50.
COUNTY OF HAWAl' I
Notes to the Basic F'inanciaJ Statements
June 30, 2023
Separate financial s1atemen1s are provided for governmental funds. proprietary funds, and
fiduciary funds, even though the latter are excluded from !he government-wide financial
statemen1.s. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in !he fund financial statements.
Activitie5 infunds -The financial transactions oflhe County are recorded in individual funds .
Each fund is accounted for by providing a separate set ofself-balancing accounts that
comprises lrs assets, deferred outflows of resources. liabilities, deferred inflows of resources,
reserves, fund equity, revenues and expenditures/expenses. The various funds are reported by
generic classification within the financial statements.
GASS Statement No. 34, Basic Financial Statements -and Management 's Discussion a11d
Analy5is -for State and local Governments, sets forth minimum criteria (percentage ofthe
assets, deferred outflows ofresources, liabilities, deferred inflows ofresources. revenues or
expenditures/expenses ofeither fund category or the governmental and enterprise combined)
for the determination ofmajor funds. The nonmajor funds are combined in a column in the
fund financial statements and detailed in the combining section.
The County reports the following major governmental funds:
G~nual Fund -The general fund is the general operating fund ofthe County. It is used
10 account for all activities ofthe general government. except those required to be
accounted for in other funds.
Capital Proju15 Fund -Used 10 account for the costs ofconstructing County capital
improvement.s financed with general obligation bond proceeds, federal and stale grants,
and general and special revenue fund revenues. The capital projects fund is used to
account for linancial resources to be used for the acquisition or cons1ruc1ion ofmajor
general government capita l facilities and infrastructure (other than those financed by
proprietary funds and trust fund s) when separate project centers are needed to control
costs.
Housing Agenc)'-The Housing Agency is used to account for Federal and County
moneys used to provide public housing assistance within !he County.
The County reports the following major proprietary funds:
Kula'lmuno Elder/)' Housing Project -Used to account for the operation ofa rental
housing project for low-income senior citizens located north of Hilo.
Ou/I Eltahi Affordable HoU5ing Ptoject -Used 10 account for 1he operation of a 33-unit
single-family affordable ren!al housing project located in Waimea .
• 51 •
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
The County reports the following fiduciary funds:
Privaie-Purpost Trust Funds -Used to account for investment income on funds
received from import businesses at the port of Hilo and the related expenditures to
promote health and safety on the Island of Hawai'i.
Custodial Funds -Used to account for assets held by the County for other governmental
units and individuals. The custodial funds are cuSlodial in nature and do not involve
measurement ofresults ofoperations. The County has the following custodial funds:
• State Weight Tax Fund
• Improvement District No. 18 Fund
• Improvement District No. 19 Fund
• Improvement District No. 20 Fund
• Improvement District Revolving Fund
• Perfonnance and Refundable Deposits Fund
• Flexible Spending Account
• Lapsed Warrants Fund
• Non-Profit License Plates Fund
• Organ and Tissue Education Fund
• Business Improvement District 1-Kailua
Basis ofAccounting
Basis ofaccounting refers to the period in which revenues and expenditures (or expenses) are
recognized in the accounts and reported in the basic financial statementS. Basis ofaccounting
relates to the timing ofthe measurements made, regardless ofthe measurement focus applied.
The government-wide financial statements and the proprietary. fiduciary and component unit
fun d financial statements are presented on an accrual basis ofaccounting. The governmental
fun ds in the fund financial statements are presented on a modified accrual basis.
Accrual Basis· Revenues arc rcc:ognized when earned and expenses are recogniwd when the
related obligation is incurred.
Modified Accrual Basis· Revenues are recorded when susceptible to accrual (that is. both
measurable and available). "Measurable" means the amounts arc detenninable. "Available"
means the amounts arc collectible within the current period or soon enough thereafter (one
year for intergovernmental revenues) to be used to pay liabilities of the current period.
Licenses and perm its, charges for current services, fines and forfeitures, penalties and
miscellaneous revenues are recorded as reven ues when received in cash because they are
generally not measurable until actually received. Real property taxes and State Revo lving
Fund loan proceeds are considered available when collected.
-52.
COUNTY OF HAWAI' I
Notes to the Basic Financial Statements
June 30. 2023
In applying lhe susceplible to accrual concept to intcrgovemmenlal revenues, the lega l and
contractual requirements ofthe numerous individual programs are used as guidance. There
are essentially two iypes ofthese revenues. In one. monies must be expended on lhe specific
purpose or project before any amounts will be paid lo the County; therefore, revenues are
recognized based upon the expenditures recorded. Most construction grants and many
operating gran1s fall into this category. In the other, monies are virtually unrestricted as to
purpose ofexpenditure and are usually revocable only for failure to comply with prescribed
compliance requirements. These resources are reflected as revenues at the time ofreceipt or
earlier if the susceptible to accrual criteria are mel.
The Counl)' reports deferred inflow ofresources in ils fund financial statements (see No1e 7).
Deferred inflows ofresources arise when potential revenue does nol meet both the
"measurable" and "available" criteria for recognition in the current period. In subsequent
periods. when both revenue recognition crileria are met. the deferred inflow is removed from
lhe fund financial statements and revenue is recognized.
Expendi1ures are recognized under the modified accrual basis ofaccounting in the accounting
period in which lhe fund liability is incurred. Except ions to this general rule include:
(a) accumulated compensated absences and claims andjudgmenls which are recognized as
expenditures when paid; (b) liabilities related to municipal solid waste landfill closure and
postclosure care costs; (c) principal and interest on general long-term debt which arc
recognized as expenditures when due: and (d) liabilities relating to pollution remediation .
The Counl)' applies all applicable GASB pronouncements, including the adoption ofGASB
Statement No. 62, CodificaJion ofAccounting and Fi11anciol Repcrtl11g Guidance Co11tui11ed
in Pre-November JO. 1989 FASB (Financial Accou111i11g Standards Beard) 011d A/CPA
(American lnstiture ofCertified Public Accou11tants) Pronouncements.
Encumbrances
The general, special revenue, and capital projects funds follow encumbrance accounting under
which purchase orders, contra<:ts and other commitments are recorded as an obligation of fund
balance and provide authoriiy for the carryover of appropriations lo the subsequcnl year in
order to complete these lransactions. Encumbrances oulstanding at year-end are included in
the respective fu nd balance categories as appropriale and do not constitute expcndilurcs or
liabilities because the commitments will be honored during the subsequent year.
Cash and l11vestmnts
Cash and cash equivalents include cash on hand, amounts in demand deposits and savings
accounts, and short-term inveslments with a maturiiy date of three months or less from the
date acquired by the County.
-53 •
COUNTY OF HAWAJ·I
Notes to the Basic Financial Statements
June 30, 2023
Investments consist ofcertificates ofdeposit, repurchase agreements, and securities with
original maturities e)(ceeding three months. These include panicipating invest ment contracts
(U .S. government sponsored agency issues and negotiable cenificates ofdeposit) as well as
nonpanicipating investment contracts (time certificates ofdeposit and repurchase agreements).
Both categories of investments are stated at fair value (see Note 3). Valuations of investments
in government sponsored enterprises such as Federal National Mongage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are based on quoted
market rates. Investments also consist ofequity securities in the fiduciary fund financial
statements. These investments are stated at fair value based on closing quoted prices.
Real Property Taxes
The County's real property taxes are levied on July I each year on assessed valuation as of
January 1. The taxes become a lien on the property assessed as ofthe levy date. Taxes are
due and payable in two equal annual installments on August 20 and February 20. Accordingly,
real property taxes receivable as ofJune 30 are delinquent. Each delinquent installment bears
interest at 1% per month and penalties ofup to I 0% ofthe amount due. Assessments are
based on I 00% ofestimated fair market values prior to the application of exemptions or
preferential assessments.
The County provides real property tax abatement under five programs -Enterprise Zone,
Historic Residential Dedication, Low and Moderate Income Housing, Agricultural Use
Programs. and Solar Water Heater Credit:
Entuprise Zone Eumption -Section 19-89.J of the Hawai'i County Code provides buildings
or other like structures which are built as a result ofnew construction by a qualified business
within an enterprise zone to be exempt except for the minimum tax from real property taxes
for a period ofthree years. The purpose ofthis program is to siimulate business and industrial
growlh. A qualified business in an enterprise zone must satisfy the requirements ofChapter 31
ofthe Hawai'i County Code and section 208E, Hawaii Revised Statutes.
Historic Residential Dedication Exeniptlon -Section 19-89.1 of the Hawai' i County Code
and Rule 36 ofthe Rules and Regulations of the Director of Finance provides an exemption to
encourage 1he preservation ofresidential struct ures that have been placed on the Hawai'i
Register ofHistoric Places after January I, 1977. The propeny owner must provide visual
access on a year-round basis or open the property to the public for twelve days per year. The
owner cenifies the current level of taxation is a material factor which threatens the continued
existence ofthe historic status. This dedicaiion is for a minimum period often years.
aulomatically renewable indefinitely. Cancellation ofthe dedication by either the owner or
the Director of Finance may only be made upon five years' written advance notice and no
earlier than the end ofthe fifth tax year. Any person who becomes an owner ofthe dedicated
real propeny shall be subject to the restrictions and retroactive tax assessment provisions. If
the dedication is approved, the exemption based upon the dedication shall be effective July I
of the tax year following the approval ofthe dedication. The dedicated exempt propeny or
• 54
COUNTY OF HAWAJ'I
Notes to the Basic Financial Statements
June 30, 2023
portion ofthe property approved shall be subject to the minimum tax provisions ofSection 19
90(e) ofthe Hawai'i County Code. If there is a breach in the agreemenl, 1he property would be
subject to roll back taxes, including penalty and interest.
low and Modtrate-lncomL Housing Extmptlon -Section 19-87 ofthe Hawai·i County Code
and Rule 37 ofthe Rules and Regulations of the Director of Finance provides an exemp1ion
for a housing projec1 which is owned and operated by a nonprofit or limi1ed distribulion
mortgagor or by a qualified entity from taxation. Must participate in long-term housing
project that have regulatory agreements mandating rent levels, occupancy ofthe project is
limited to the elderly, handicapped, low or modcrale income families. Applicants must submit
an application form along with a copy of the recorded regulatory agreement. The exemption
is equal to I OOo/o ofthe assessed value for the portion of the real property tha1 is dedicated as
low-and moderate-income rentals. If the entire property is dedicated, then the ncl taxable is
zero but the property is still subject to the minimum tax per Section 19-90(e) ofthe Hawai·i
County Code. The exemption shall continue so long as the rental housing project is owned
and operated by a nonprofi1 or limited mortgagor. If the rental units do not comply with the
regulatory conditions. the property would be subject to roll back taxes. including penalty and
interest.
Non DedicatedAgricllltural UseAsusstnLnt -Section 19-57 ofthe Hawai"i County Code
and Rule 34 ofthe Rules and Regulations of the Director of Finance reduc:cs assessments to
encourage local agricultural production as well as the preservation ofagricultural lands that
could otherwise be further developed, by valuing these lands at the at two times the dedicate
agricultural use value as opposed to the market value. Unlike the Dedicated Agricultural Use
program, the zoning for this program must be agricultural. An application form must be filed
along with a plot plan and provide details as to what agricultural activities are conducted on
the property. Upon review and approval, the application is effective as ofJanuary I for the
following tax year. Renewal ofthe application shall be in such form and at such time as
requested by the director. Valuation consideration is given to the type ofagricultural activity.
Any breach to the terms of would result in an immediate rollback calculation of current plus
two yeas taxes plus penalties and interest.
Commucial Agrlcll/tural Use Dedication -Section 19-60 ofthe Hawai·i County Code and
Rule 31 ofthe Rules and Regulations of the Director of Finance provides reduced assessments
to encourage local agricultural production as well as the preservation ofagricultural lands that
could otherwise be further developed, by valuing the dedicated lands at the agricultural use
value as opposed to the market value. An application form must be filed along with a plot
plan and provide details as to what agricultural activities are conducted on the property. Upon
review and approval, the owner is required to record the dedication at the Bureau of
Conveyances. There is currently only one available dedication length which is a 10 year
period. however. previously there was a 20 year dedication. This dedication does not
automatically renew. Valuation consideration is given to the type ofagricultural activity.
Any breach to the terms ofthe recorded dedication would result in the cancella.tion ofthe
-55
COUNTY OF HAWAJ·J
Notes to the Bask Financial Statemen ts
June 30, 2023
dedication, or portion thereof, and the immediate rollback calculation of taxes plus penalties
and interest.
Solar Watu H~atu Credit· Section 19-104 ofthe Hawai·i County Code provides a one-time
tax credit per tax map key for up to $300 for the owner ofreal Pf"Operty who installs a solar
water heater on the owner's property on or after January I, 2008. This program was created
with the purpose ofproviding an incentive to support renewable energy. The owner must
apply for the credit.
Information relevant to the disclosure ofthese programs for the fiscal year ended June 30,
2023 is as follows:
Tax Abatement Program Amo1mt of Taxes Abated· as defined by GASB 77
Enterprise Zone $1,993
Historic Residential Dedication $369.914
Low and Moderate Income Housing $1,284,818
Agricultural Use Programs $34,271,482
Solar Water Heater Credit $27,000
Inventories
Inventories consist ofmaterials and supplies and are reported as expenditures at the time of
consumption (consumption method). Police and fire department inventories are stated using
the first in, first out (FIFO) method. Other inventories are stated at average cost.
Liquor Control
Section 281 ofthe Hawai•i 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, 2023 of$1,021.713 are reflected as a restriction ofgeneral fund balance.
Capital A~ts
Capital assets. which include property. plant, equipment, and infrastructure assets (e.g .. roads,
bridges, curbs and guners, streets and sidewalks, drainage systems, lighting systems, and
similar items). are reported in the applicable governmental or business-type activities columns
in the government-wide financial statements. Capital assets are defined by the County as
-56.
COUNTY OF HAWAJ'l
Notes to the Basic Financial Statements
June 30, 2023
assets with an initial, individual cost ofmore than $1,000 and an estimated useful life in
excess ofone year. Such assets are recorded ar historical cost or estimated historical cost if
purchased or constructed . Donated capital assets are recorded at acquisition value ifavailable
or ifnot, at estimated fair market value at the date ofdonation.
The costs of nonnal maintenance and repairs that do not add to the value of the asset or
materially extend the life ofthe asset arc not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Capital assets ofthe primary government and enterprise fund are depreciated or amonized
using the straight-line method over the following estimated useful lives ofthe assets:
~ Years
Infrastructure 20 to I 00 years
Buildings and improvements 50 to I 00 years
Ground and site improvements 20 to 50 years
Equipment S to 40 years
Easements Dependent on tenns ofeasement agreement
Right to use leased assets Dependent on tem1s of lease agreement
Deferred Outflows of Resourca and Dderttd Inflows of Resources
Deferred outflows of resources represent a consum ption of net assets that applies to future
periods and will not be recognized as an outOow of resources (expense or expendil\lre) until
that time. The County has three items that qualifies for reponing in this category. The County
repons the deferred loss on refunding and deferred outflow related to both pensions and other
postemployment benefits (OPEB) as a deferred ou10ow of resources in its statement of net
position.
Deferred inOows of resources represent an acquisition ofnet assets that applies to future
periods and will not be recognized as an inflow of resources (revenue) u111il that time. Propeny
taxes, fees, cenain grants, lease rental income and other non-exchange transactions received in
the current fiscal year for the ensuing fiscal year are reponed as deferred inflows of resources.
These amounts are deferred and recognized as an inOow of resources in the period that the
amounts become available. The County also repons deferred inOows of resources rela1ed 10
both pensions and other postemploymem benefits (OPEB).
Long-le.rm Obligations
The County repons long-tenn debt of governmental funds at face value on the govemment
wide statement ofnet position. Cenain other governmental fund obligations not expected to
be financed with current available resources are also reponed on the government-wide
-57
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30. 2023
statement ofnet position. Long-tenn debt and other obligations financed by the proprietary
funds are reported as liabilities in those funds.
Compensated Absences
Employees earn vacation credit at the rate ofone and three-quarter working days for each
month ofservice. Up to ninety days ofvacation leave credits can be accumulated per
employee. In addition, employees who work overtime can elect to rake compensatory time off
instead ofovertime pay. The time off is earned at the rate ofone-and-a-half hours for each
hour ofovertime worked. There is no statutory limit to the amount ofcompensatory time off
an employee can accumulate. Both compensatory time offand vacation credits are convened
to pay upon tennination ofemployment.
A liability for these amounts is reported in the governmental funds only ifthey have matured.
for exam ple, as a result ofemployee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government-wide statement ofnet position along
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon tennination ofemployment; therefore there is no related
liabiliry. However, a County employee who retires or leaves government service in good
standing with 60 days or more of unused sick leave is entitled to additional service credit in
the Employees· Retirement System ofthe State of Hawai'i. Accumulated sick leave at
June 30. 2023 totaled $79, 71 S,883 for the primary government.
Leases
The financial statements reflect both a long-1enn lease liability and right to use asset a1 the
present value of payments expected to be made under the lease agreement. However, if the
lease agreement involves the asset's transfer ofownership to the County at the end ofthe
contract, the agreement has been recognized as a financed purchase and accounted for
accordingly.
For those leases in which the County leases real property to others, the County has recognized
a receivable and a deferred inflow ofresources at the present value ofpayments expected 10 be
recei ved under the lease agreement.
Pensions
For purposes ofmeasuring the net pension liability, deferred outflows ofresources and
deferred inflows ofresources rcla!cd to pensions. and pension expense. information about the
fiduciary net position ofthe Employees' Retirement System of the State of Hawai'i (ERS)and
additions to and deductions from ERS's fiduciary net position have been detennined on the
-58
COUNTY OF HA WAl'I
Notes to the Basic Financial Statements
June 30, 2023
same basis as they are reported by ERS. For 1his purpose. benefit payments (including
refunds ofemployee contributions) are recogniz.ed when due and payable in accordance with
the benefit tenns. Investments are reported at fair value.
Other Postemployment Beaefits (OPEB)
For the purposes ofmeasuring the net OPEB liability, deferred outnows or resources and
deferred inflows ofresources related to OPEB. and OPEB expense, infonnation about the
fiduciary net position ofthe Hawaii Employer-Union Health Benefits Trust Fund ("EUTF")
and additions to/deductions from EUTF's fiduciary net position have been detennined on the
same basis as they are reported for EUTF. For this purpose, EUTF recognizes benefit
payments when due and payable in accordance with the benefn terrns. Investments arc
reported al fair value. except for investments in commingled and money market funds. which
are reported at net asset value (NAV). The NAV is based on the fair value ofthe underlying
assets held by the respective fund less its liabilities.
Operating Revenues and Expenses
Revenues and expenses are distinguished between operating and nonoperating items for the
proprietary funds. Opera1ing revenues generally result from providing services in conncclion
wilh the proprietary funds' principal ongoing opera1ions. The principal operaling revenues of
the proprietary funds are fees charged to residents for rent and rental subsidies received from
the federal government
Operating expenses include the costs associated with providing housing for tenants. such as
utilities, lease rent, and maintenance and repairs; administrative expenses; and depreciation on
capi1al assets. All revenues and expenses not meeting these definitions are reported as
nonoperating revenues and expenses.
Use of Estimates
The preparation of the basic financial statements in accordance with OAAP requires
management 10 make estimates and assumptions !hat affect the reported amounts ofassets,
deferred outflows ofresources, liabilities, and deferred inflows ofresources, as wel I as
disclosure ofcontingent assets and liabilities al the date ofthe financial statements. and the
reported amounts ofrevenues, expenditures, and other financing sources and uses during the
reponing period. Actual results could differ from those estimales.
Fund Balances
When both restricted and unrestricted fund balances are available for use, it is the County's
policy to use restricted fund balance first, then unrestricted fUnd balance. Furthermore.
commined fund balances are reduced firs t, followed by assigned amounts, and then
-59
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
unassigned amounts when expenditures arc incurred for purposes for which amounts in any of
those unrestricted fund balance classifications can be used.
The County reports the following classifications:
Nonspendable Fund Balance -Nonspendable fund balances are amounts that cannot be
spent be.:ause they are either nor in spendable form, or, for legal or contractual reasons.
must be kept intact. The County has inventory and prepaids included in their
nonspendable fund balance.
Restricted Fund Balance -Constraints placed on the use of these resources arc either
externally imposed by creditors (such as through debt covenants). grantors. contributors
or other governments or are imposed by law (under the Hawai'i Revised Statutes or
County ofHawai'i Charter).
Committed Fund Balance -Committed Fund Balances are amounts that can only be used
for specific purposes as a result ofconstraints imposed by the County Council via
ordinances and the County Code and can only be undone via the same manner. The
comm itted fund balance ofthe General Fund includes the portion offund balance
committed to budget stabilization. The budget stabilization portion is authorized under
County Code §2-219 to §2-223 and additions are made via the County budget or
subsequent budget amendments. The fund balance may only be used when there is a
reduction in budgeted revenue and the director offinance determines that the extent of
such reduction necessitates the use of these funds to prevent a reduction in the level of
public services. Upon written detem1inatlon by the dire.:tor that such usage is necessary.
appropriations from such fund would require passage by two-thirds of the county council
as opposed to the usual simple majority.
Assigned Fund Balance -Assigned fund bala.nces are amounts that are constrained by the
County's intent as detennincd by the Mayor but are neither res1ricted nor committed.
The County's only assigned fund balances are in the General Fund and Capital Projects
Fund and the majority consists of the portion of fund balance that is intended to balance
the subsequent year's budget, which is conveyed by the Mayor via his approval of
allocment requests and his approval ofthe current year's fund balance amount to be
included in the subminal for next year's annual budget ordinance.
Unassigned Fund Balance -This is the residual classific.ation ofthe General Fund. The
General Fund is the only fund that could potentially report a positive unassigned fund
balance.
The category ofOther for the Restricted, Committed and Assigned fund balances on the
Governmental Funds Balance Sheet include funds restricted for the purposes ofhousing and
rental assistance; parks and recreation projects; general and public safety facilities; liquor
control: taxicab investigations; special duty officers and sewer loan programs.
-60
COUNTY OF HAWAJ'I
Notes to the Basic Financial Statements
June 30, 2023
Net Position
When both restricted and unrestricted net position are available for use, it is the County's
policy to use restricted net position firsi, and then unrestricted net position.
In the government-wide and proprietary fund financial statements. equity is displayed in three
componenlS as follows:
Net investment in capital asselS -This consists of capital assets, net of accumulated
depreciation, less the outstanding balances of bonds, mortgages, nores, or other borrowings
that are anributable to the acquisition, construction. or improvement ofthose assets.
Restricted -This consists of net position that is restricted by oulSidc parties or by law through
constitutional provisions or enabling legislation.
Unrestricted -This consists of net position that does not meet the definition ofrestricted or net
investment in capital assets.
New Accounting Pronou ncements
In May 2019, GASB issued Statement No. 91, Conduit Debt Oblig01io11s. The objectives of
this Statement are to provide a single method ofreporting conduit debt obligations by issuers.
The requirements ofthis Statement are effective for reporting periods beginning after
December 15, 2021 . The County has fully implemented the requirements in the currem fiscal
year.
In March 2020, GASB issued Statement No. 94. Public-Private and Public-Public
Partnerships and Availability Payment Arrangements. The objective ofthis Statement is 10
improve financial reporting by addressing issues related to public-private and public-public
partnership arrangements. The requirements of 1his Slatemenl are efTeclive for fiscal years
beginning after June I 5. 2022. Management has determined that this Stalement docs not have
a material impact on the County 's financial statements.
In May 2020, GASB issued Statement No. 96. S11bscrfptio11-Based ltrformation Tech11of0fl{)l
Arrangements. The objective of this Statemenl is to provide uniform guidance for accounting
and financial reporting for transactions that meet the definition of a subscription-based
information technology arrangement. The requirements ofthis Stalement are effective for
fiscal years beginning after June 15, 2022. The County has fully implemented the
requirements in the current fiscal year.
In Apri l 2022, GASB issued Statement No. 99, Omnibus 2022. The primary objectives ofthis
Statement are to enhance comparability in accounting and financial reporting and to improve
the consistency ofaulhori1a1ivc literature as contained in GASB Statement No. 53, 87. 94 and
- 61
COUNTY OF HAWAl'I
Notes to the Bas ic Fina.ncial Statements
June 30, 2023
96. Management has detenn ined that this Statement does not have a material impact on the
County's financ ial statements.
In June 2022, GASB issued Statement No. I00, Accounting Change and Error Corrections.
The objective ofthis Statement Is to enhance accounting and financial reporting requirements
for accounting changes and error corrections to provide more understandable. reliable,
relevant, consistent, and comparable infonnation. The requirements ofthis Statement are
effective for fiscal years beginning after June 15, 2023. The County has not yet determined
the effect this Statement will have on its financial statements.
In June 2022, GASB issued Statement No. IOI. Compensated Absences. The objective ofthis
Statement is to better meet the information needs of financial statemen1 users by updating the
recognition and measurement guidance for compensated absences. The requirements ofthis
Statement are effective for fiscal years beginning after December 15, 2023 . The County has
not yet detennined the effect that this Statement will have on its financial statements.
Adoption ofNew Accounting Principle
The County and Department implemented GASB Statement No. 96, Subscription-Based
l11/or111atio11 Technology Arrangements. The objective ofthis Statement is to prov ide uniform
guidance for accounting and financial reporting for transactions that meet the definition ofa
subscription-based information technology arrangement. The principal objective of 1his
Statement is to better meet the infonnation needs offinancial statement users by improving
accounting and financial reporting for arrangements that meet the above criteria by
governments.
As a result ofthis new Statement, the County recogni2ed expenditures and other financing
source related to Subscription Based Information Technology Asset (SBITA) in the
governmental funds totaling $4,291,773,which were then recognized as a subscription asset
and a long-tenm subscription liability, in 1he Statement ofNet Position.
As a result of implementing GASB 96. the Department recognized a SBITA asset and liability
of$9,695.
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Annwtl Budget
The County follows these procedures in establishing its operating and capital budgets:
• On or before March I, the Mayor submits 10 the County Council proposed operating and
capital projects budgets for 1he fiscal year commencing the following July I. The
operating budget includes proposed expenditures for the general fund and special revenue
-62
COUNTY OF HAWAI' I
Notes to the Basic Financial Statements
June JO, 2023
funds, and the means of financing them. A project-length budget is submined 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 stare legislature, but not
later than May 5.
• The County Council conducts public hearings on the proposed operating and capital
budgets after March I but prior to the fi rst reading on the budget bills, which must be
after May 5.
• On or before June 30. the County Council adopts the budgets. The legal level of
budgetary control is the department level because the Mayor can transfer funds from any
unencumbered appropriation to another within a department or agency without County
Council approval. During the year, the budget may be amended by action ofthe County
Council, excep1 for appropriations requ ired by law and appropriations for debt service,
which may not be decreased or deleted. Supplemental appropriations were made during
the 2022-23 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 SI I. I million in the general fund and SJ2.5
million in the special revenue funds. Lcg11lly adop1cd budgets include the General Fund.
Highway Fund, Sewer Fund, Solid Waste Fund, Cemetery Fund, Vehicle Disposal Fund.
Bikeway Fund, Workforce Investment Act Fund, Golf Course Fund, Geothermal
Relocation and Community Benefits Fund, Beautification Fund, Howai·i County Housing
Agency Fund, General Excise Tax Fund. Short-Tenn Vacation Rental Enforcemenl Fund ,
and Geothennal Asset Fund.
• Appropriations for the operating budget lapse at the end of the fiscal year 10 the extent
that they have not been expended or encumbered. Appropriations for capital
expenditures that are not encumbered lapse at the end oftwo fi scal years following the
fiscal year that the appropriation was made.
• Formal budgetary integration is employed as a management control device during the
year for the General Fund, special revenue funds, and Capital Projects Fund. Formal
budgetary integration is not employed for debt service funds because effective budgetary
control is alternatively achieved through general obligation bond indenture provisions.
• The accompanying statement of revenues, expenditures and changes in fund balances
budget and actual (budgcrary basis) for the General Fund presents a comparison ofthe
legally adopted budget with actual data on a budgetary basis. Account ing principles
applied for purposes ofdeveloping data on a budgetary basis differ significantly from
those used to present financial statements in c:onfonnity with GAAP. On the budgetary
basis, inrergovemmcntal revenues are recognized when awarded by the granting agency,
encumbrances and unexpended allotments are treated as expenditures, accounts payable
-63.
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
are not accrued, and all leases are treated as operating leases. In preparing the financial
statements on a GAAP basis, accounts payable are accrued and treated as a reduction of
encumbrances for balance sheet presentation.
Budget to GAAP Reconciliation
The fol lowing is a summary ofthe adjustments necessary to conven fund balances ofthe
County's General Fund and General Excise Tax Fund from a GAAP basis to a budgetary basis
at June 30, 2023:
Ending fund balance -GAAP basis
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments
Ending encumbrances and unexpended allotments
Other adjustments
General Fund
$ 190.735.464
6,620.227
( 12,951,200)
_LJ_()_,590.041)
Housjng
Agency
$12,611.238
I,162, I67
(1.106,782)
_ 2U2J_
Ending fund balance -Non-GAAP budgetary basis l-113,s 14..lli) 112.,693Jo014
3. CASH AND lNVESTMENTS
The Director ofFinance is responsible for the safekeeping ofall monies paid to the County.
The Director of Finance invests any monies of the County which in the Director's judgment
are in excess of the amounts necessary for meeting the day-to-day operating needs of the
County. Under Section 46-50 ofthe Hawai'i Revised Statutes, legally authorized investments
include obligations ofor guaranteed by the U.S. government, obligations of the State,
federally insured savings and checking accounts, time certificates of deposit. and repurchase
agreements with federally insured financial institutions.
Cash
The County maintains a number of checking and savings accounts for various funds and with
various financial institutions. Bank deposits are under the custody ofthe Director of Finance.
For financial statement reporting purposes. cash and shon-tenn investments consist of cash
and money market accounts. Cash and short-term invesnnents also include repurchase
agreements. certificates of deposit, and government sponsored securities with original
maturities ofthree months or less.
The carrying amount ofthe County's deposits (cash, time cenificates of deposit, and money
market accounts) as ofJune 30, 2023 was $673, I 06,250 for the primary government and
$6,026.028 for the fiduciary funds.
lnfonnation relating to bank balance, insurance and collateral ofcash deposits is detenn ined
on a county-wide basis. Total bank balances ofdeposits for the primary government and
• 64
COUNTY OFHAWAI'I
Notes to the Basic Financial Statements
June 30, 2023
fiduciary fund s amounted to $698,697,836 at June 30, 2023. Ofthat amount, $697,053,797
represents bank balances covered by federal deposit insurance or by collateral held by the
County·s fiscal agents in the name of the County. The remaining bank balances ofSl,644,039
represent deposits held by a management agent and were uncollateralized. Accordingly, these
deposits were exposed to custodial cred it risk. Custodia l credit risk is the risk that in the event
ofa bank fa ilure, the County's deposits may not be returned to it For checking and savings
accounts, time certificates ofdeposil, and repurchase agreements, the County requires, in
accordance with State statu1es, thal the depository banks pledge collateral based on the
available bank balances for the protection ofthe funds deposited. All securities pledged as
collateral are held by lhe County's fiscal agents in 1he name of the County. The County also
requires that no more than 60"/o ofthe County's total funds available for deposit may be
deposited in any one financial institution, in accordance with Slate statules.
Investments
The County holds investments both for its own benefit and on behalf of some of the fiduciary
funds. The County's investments offunds not required for immediate payments are
predomina1ely comprised ofgovernment sponsored securities (equivalent to the rating in U.S.
Treasuries), repurchase agreements and certificates ofdeposit, while the fi duciary funds also
hold equity securities.
The framework for measuring fair value provides a fair value hierarchy that priorilizcs the
inputs to valuation techniques used to measure fair value. The hierarchy gives the highesl
priority to unadjusted quoted prices in active markeis for identical assets or liabilities (level I)
and the lowest priority to unobservable inputs (level J). The three levels of the fair value
hierarchy are described as follows:
Level I -Inputs are quoted prices (unadjusted) in active markets for idcn1ical assets or
liabilities 1ha1 a government can access at the measurement date. An active market is a
market in which transactions for tlte asset or liabiliiy take place with sufficient frequency
and volume to provide pricing infonna1ion on an ongoing basis.
Level 2 -Inputs other than quo1ed prices included within level I that are observable for
an asset or liability, either directly or indireclly. If the asset or liability has a specified
(contractual} term, a level 2 input must be observable for most of the full 1erm of the asset
or liabiliiy.
Level 2 inputs include:
• Quoted prices for similar assets or liabilities in active markets,
• Quoted prices for iden1ical assets or liabilities in markets the1 arc not active.
• Inputs other than quoted prices that are observable for the asset or liability.
• Inputs that are derived principally from or corroborated by observable markel
data by correlation or other means.
-65
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
Level 3 -Inputs are unobservable for an asset or liability.
Following is a description ofthe valuation techniques used by the County to measure fair
value:
Government sponsored securities of$11,989,293 and negotiable certificates of deposits
of$48,065,343: Valued using quoted prices at the end ofthe fiscal year for identical or
similar assets in markets that are not active (Level 2).
Equ ity securities of$1,897, I 97: Valued using quoted prices in active markets for
identica l assets or liabilities that a government can access at the measurement date (Level
I}.
The County's investments and maturities at June 30, 2023 are as follows:
Maturity (in years)
fajr Yalui: Less than I L=.i
Investments -Primary Government:
Certificates ofdeposit $ 48,065,343 $ 41,665,445 $ 6,399,898
Government sponsored securities l 1.989.293 ~.71 !.403 9.277.890
$_60,054 636 $...4.4 376.&48 $15 677 188
Investments -Private-Purpose Trusts;
Equity securities $ I 897 197 J. !.897.197 ,.,$ ____
Interest Rate Risk: 111e County minimizes its eKposure to interest rate risk by limiting the
maturities of investments to five years or less in compliance with state statute. The County's
policy is to hold investments until maturity and does not engage in trading for capital gains.
Credit Risk: The County's investment ponfolio primari ly consists of U.S. government or
agency obligations, bonds of government sponsored enterprises, time cenificates ofdeposit
and repurchase agreements. These investments are either insured by the FDIC, secured by
collateral or ca1·ry a credit rating equivalent to U.S. Treasuries.
Custodial Risk: Custodial risk is the risk of loss from the failure ofthe counterparty, which is
defined as any entity that obtained an investment on behalf of the County. All of the County's
deposits including repurchase agreements are secured by collateral which is kept by a third
pany custodian. Broker-dealers utilized by the County are members of the Securities Investor
Protection Corporation, and all investment securities are held in the County's name.
Co11ce111ra1io11 ofCredit Risk: State law limits deposits to no more than 60% ofthe total in
any one depository. The County seeks to further diversify its portfolio by purchasing from
different issuers, by purchasing different types ofinvestments and by purchasing investments
. 66.
COUNTY OF HAWAl'I
Notes to the Bask Financial Statements
June 30, 2023
at different maturities. The County also purchases i1s investments from a number ofbanks
and broker-dealers both localed locally and on 1hc mainland. As ofJune 30, 2023,
investments were dis1ribu1ed as follows: FTN Financial, 0.5%; Multi Bank Securities, 2.0%;
First Hawaiian Bank, 30.1 %; Raymond James. 0.6%; Stifel Nicolaus & Company, 1.2%: Bank
of Hawa ii, 28.7%; Territorial Savings, 20.5%; Central Pacific Bank, 9.8% and Hawaii
National Bank. 6.6%.
Restricted Cash and Cash Equivalents and lavestments
Cash and cash equivalents and investments classified as restricted assets for the primary
government at June 30, 2023 amounted to $382,689,647.
Construction related contributions and unspent bond proceeds restricted 10 various capi1al
improvement projects and fuel tax funds received are recorded as restricted assets in the
Capital Projecis Fund. Such funds totaled $156.987,637 at June 30, 2023.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to
debt service related payments and amounted to $54,399,333.
Cash in the Highway Fund, Bikcway Fund. General Excise Tax and Beau1ification Fund arc
restricted to costs incurred relating to highways and streeis and the beautification of such
items and amounted 10 $95,610,262.
Cash in the Hawaii County Housing Agency and Short-term Vacation Rental Enforcement
Fund c lassified as restricted to provide public housing assistance and housing rules
enforcement amounted to $35,232,031.
Cash in the Geothennal Asset Fund classified as restricted to compensating persons impacted
by geothennal energy development activities amounted to $2,419,477.
The restricted cash in the General Fund was comprised ofcash restricted to costs incurred to
administer the liquor commission; cash restricted 10 the acquisition and maintenance of lands
or property entitlements for public outdoor recreation and education and cash and investments
restricted for disasters and emergencies. Such amounts totaled S 1,021.713; $26,800,215 and
SI 0.098.6 71, respectively.
Tenant security deposits received by the County for the Kula· imano Elderly Housing Projec1
and the Ouli Ekahi Affordable Housing Project arc recorded as restricted assets. Such funds
amounted to$ I5,023 and SJ I, 173, respectively, at June 30, 2023 .
An operating reserve fund was established by the Ouli Ekahi Affordable Housing Projec1
pursuant to an agreement with the Hawai 'i Housing Finance and Development Corporation.
who are the holders ofthe project' s note. This restricted reserve amounted to $74,112 at June
30, 2023.
-67 .
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2023
4. RECEIVABLES
Receivables as of June 30, 2023, for the County's individual major funds and other funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Governmental activities:
Capital Hawaii County Other
General ProjectS Housing Governmental
Fund Fund AWfil Funds Total
Real property taxes $43,993,906 $ $ $ $43,993,906
Transient
Accommodations
Tax 3,040,282 3,040,282
Accounts receivable:
Sewer 3,636,267 3,636,267
Solid waste 1,200,868 1,200,868
Intergovernmental 1.2,J 18,3 l~ 17,635,001 111 073 27,959,417 ....§.5,023,llQ6
Gross receivables 66,352,503 17,635,001 111,073 32,691,380 I 16,895, I 29
Less: allowance for
uncollectibles 12.Z7~.Z66l { 1,Q§2,022l (I Q,~42,~ IZl
Net total receivables ~~5Zl!,™ m~l LJJWLU ~J 1.ru.s~z ll2§,Q5.2,,_3) 2
During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf
of Improvement District No. 18, a custodial fund. On February 12, 2013 bonds were issued to
refund the outstanding principal balance of$1,345,945 for the Improvement District. During
fiscal year 2014 and 2015, the County also issued $448,669 and $720,33 l, respectively, in
general obligation bonds on behalf of Improvement District No. 19, a custodial fund. During
fiscal year2021 , the County issued $2,43 7,000 in general obligation bonds on behalf of
Improvement District No. 20, a custodial fund . At June 30, 2023, the outstanding balance for
the Improvement Districts of$3,913,658 is reflected in the government-wide statement of net
position as a receivable (see Note l l ).
Business-type activities:
Enterprise
Funds
Accounts receivable:
Rent $ I 1,074
Other ~.JQ~
Gross receivables 19,379
Less: allowance for
uncollectibles ( IQO}
Net total receivables $ 12.m
• 68
COUNTY OF HA WAl'I
Notes to the Basic Financial Statements
June 30, 2023
Lease Receivable
The County has enlercd into several agreemenls with third panies in which !hey have been
given the right to use certain assets owned by the County for specified periods of time in
exchange for monelary compensalion. These assets include land and buildings and !he
original lerms of !he leases range from 2 to 50 years with varying paymenl terms and
requiremcnls. For the fi scal year ending June 30, 2023, lhe County recognized $337,701 in
lease revenue and $80.908 in interest revenue.
Balance Balance Due Within
Julll I, 2022 &!!!IJiQ!ll Deletions lun~ l!l. 2023 o~};'.~ar
Fund:
General Fund s 939.834 s 210.508 $ (227.582) s 922.760 s 59.193
Solid Waste Fund 239.385 (44,202) 195,183 45,969
GolfCourse Fund 1,594,747 ( 194,564) 1,400,183 199.086
Hawaii County
Housing Agency 554 051 !J§,482) ~ 1 7,~~ 37993
Total s 3 088 632 449A8il $ 1502 !U1) s. ~.0.15~®1 s 3§2,l!t I
The following are the lease receivable payments due in the upcoming years:
Fiscal year ending June 30: Principal lnlereg
2024 s 342,24 1 $ 71,898
2025 352,655 62.668
2026 360,617 53,159
2027 370,651 43 ,413
2028 290,901 34.496
2029 -2033 793.929 104,397
2034 -2038 276, 139 45.025
2039 -2043 233,712 17.155
2044 -2047 J4.843 J92
Total 43~403
-69
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
5. INTERFUNO RECEIVABLES ANO PAYABLES
lnterfund receivables and payables consist ofthe following at June 30, 2023:
Receivable Fund Payable Fund Amount
General fund Capital projects fund $ 210.169
Hawaii county housing agency 6.588
Other governmental funds 2.382.40]
2,599, 164
Capital projects fund General fund 228,546
Other governmental funds 603.867
832,4 13
Hawaii county housing agency General fund 83,111
Other governmental funds 77.608
160,719
Other governmental funds General fund 345,44 1
Capital projects fund 212,477
Hawaii county housing agency 82,351
Other governmental funds 214 467
854.736
Total $ 4.442.032
Hawaii county housing agency Enterprise funds $ I0.527
Other governmental funds 246.865
Total .-).57~3,2.Z
The above interfund balances result from the time lag between the dates that interfund goods
and services are provided or reimbursable expenditures occur, transactions are recorded, and
payment between funds are made.
Transfers for the fiscal year ended June 30. 2023 consisted ofthe following:
Imnrl"~~ QlJt
Capital Hawaii county Other
General projects housing governmental
ll!ru! fwlll ~\ill£.¥ fllru!j Tuull
Transfers in:
Capital projects fund $ 119,750 $ $ $ 32,552,590 $ 32,672,340
Hawaii county
housing agency 11 ,144,320 11.144,320
Other governmental
funds 79, 760.Jfil ~.BQ~.244 ___ll.~fi~.fiQ7
121,02~ ~33 .l... l 41 J~~ SH U12.J19~2[Z
-70
COUNTY OF HAWAl' J
Notes to the Basic Financial Statements
June 30, 2023
The interfund transfers noted above include transfers from the General Fund to provide
support for various County programs and to provide resources for the payment of debt
services. In addition, some of the other governmental funds have made transfers to the capital
projects fund for the construction of various projects.
6. CAPITAL ASSETS
Capita l asset activity for the fiscal year ended June 30, 2023 for the County was as follows:
Balance Balance
July I, ReiimnenlSI June JO,
W1 ~ddi!i!!IU Transfm illl
Govcr•mcntat activities:
Capital assets not being depreciated:
Land and
improvements $ 310,930,66 1 $ 8 I,3&3,797 $ ( 1 .906.526) $ 390.407,932
Easements 15,570,782 6,746,620 22,317.302
Construction work in
progress 26,822.Z~Q 8~.048,254 (60,!!ZJ,504 l 118.~M,480
Total capital assets not
being &preciated 423,401.1 73 170,178,57 1 C62 580,030! 530,999,7 14
Capital assets being depreciated:
Buildings and
improvements 826.239.076 18.241,653 1.279,712 845. 760,44 1
Equipment 184,885,1 I 3 8.254.907 (6,895,795) 186,244,225
Easements 456,639 456,639
Infrastructure ~28.~QJ,287 65,J2!!.l~l (J~.926,4~4) Z2Z,9J8,196
Toial capital assets
being depreciated t.7 10.084,615 91.857.423 CS 1,637,6731 .J..lJ)0.322.50 I
Less accumulated depreciation for:
Buildings and
irnprovcments (180.829.213) (14,150.691) 103,578 ( 194,876,326)
Equipment {121,749.591) (I 0,505,631) 6,890,952 ( 125.364,270)
Easements (456,568) (29) (456,597)
Infrastructure (~12,481.~2) (2.4.22!!. 142} (~42,24!! 489}
Total accumulated
dcP"eciation 1720.485,Z 191 (49.452.4931 6,W,530 __1W.943,682l
Total capilal assets
being ~preciated,
net 982.~2B.82.~ 42 4Q!!,2JQ (44,64l, I4J l 222,4~~ 812
-71
COUNTY OF HA WAI'!
Notes to the Basic Financial Statements
June 30. 2023
Balance
July I, zon AdditiQlll
Retirements/
Tumkrs
Balance
June 30.
2.02.l
Capital assets being amonized:
Amonizablc right to
use assets:
Land
Buildings and
improvemtnts
Equipment
Total amortizable right
to use assets
s 772.132
IS,086.S02
1,179,~lZ
I Z,!238,171
s -
S,305.878
S99,255
~.905,133
$
{&!.~lSl
{~!1.~~Sl
s 772.132
20.392.380
l.Z21J~2
~2.892,7!!9
Less accumulated
amonization for:
Land (79.801) ( 151.339) (231, 140)
Buildings and
improvements ( 1,855.307) (2,062.816) (3.9 18.1 23)
Equipment {61!2.2Jll U21,§98} 4S,481 (9~9, I5~)
Total accumulated
amonization (2,218.!M6l (;2,535 8~Jl ~5,gs1 (~.IQ8,4 I 8l
Total right to use
assetS being
amoniud. net 14.422.125 3,369,280 !S,054> 17,784,lSI
Subscription assets
Less accumulated
amonization
827,734 3,464,039
,254.228)
4,291 ,773
(754,228)
Total subscription
assets. net 827,734 2.709,131 3.536,865
Governmental
activities capital
assels, net ~l..128 242~~ s 21U6! 212 WZ.Jll,021) W42JZ!i._1.42
-72
COUNTY OF HAWAJ·I
Notes to the Basic Financial Stattmtnts
June 30, 2023
Business-type 1ctivities:
Balance
July 1,
~ MdlliRm
Retirements/
Transfm
Balance
June 30,
mJ
Capital assets nOI being depreciated:
Land
Construction v.orlt in
~
Total capital asseu nor
being depreciated
s 753.877
1sJ,an
s
IOS,256
1!25.256
s s
_
753,877
l!!lJl6
m.m
Capiial assets being depreciated:
Buildings and
Improvements
Ground and site
Improvements
Equipment
3,973,237
212,850
157.216
24.291
5.Q98 119.§74)
3,997,528
272,850
__l.42,64-0
Total capital assets
being depreciated _i..40JJ.l!l 29,382 (19.67'!.l 4.413.0JS
Less accumulated depreciation for.
Buildings and
improvements
Ground and site
improvements
Equipment
Total accumulated
Depreciation
(1.273.U.4)
(236.692)
(21 .l~Bl
".60 1.8241
(111,125)
(4,347)
(2l.~2ll
038.965)
14 IB~
14,l84,
(1.384.199)
(241,039)
_LJOOMD
11.726.60"
Total cnpilal assets
being depreciated,
net 2,801.478 (4.320) (5.4901 _2,]9..J.M2
Business-type
activities capital
assets. Ml 1.~SW-' l (4 l'>Q) ,i ~.420) s J,54$_>16
-73
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
Depreciation and amortization expense was charged to functions/programs ofthe primary
government as follows:
Governmental activities:
General government $ 4.526,719
Public safety 5,534,778
Highways and streets 26,9 10.635
Sanitation 8,236,984
Health, education and welfare 3,407,297
Cuhure and recreation 4,126.841
Total depreciation and amortization expense
govemmental activities
Business-cype activities:
Kula'imano Elderly Housing Project s 104.664
Ouli Ekahi Affordable Housing Project 34.301
Total depreciation and amonization expense
business-type activities ~lJ8.965
~
7. DEFERRED INFLOW OF RESOURCES
Deferred innow of resources consists of the following at June 30, 2023:
Governmental activities:
Capital Hawaii county Other Total
General projects housing governmental governmental
fl!nll fund agi:nc)' funlf.s funds
ReaI property taxes s 37.895,010 $ s .. $ -s 37,895,010
Liquor control revenue 205,854 205.854
County transient
accommodations tax 2,391,866 2.391,866
Noncurrent grants 5,153,109 5, 153, 109
Rental income (leases) 922,760 s17,562 1.595,366 3,035,688
Sewer revenue 2.638,2 16 2,638,216
Solid waste revenue I , 129,824 1,129,824
Housing revenue 217.407 217 407
Total presented in fund
financial statements 41,4 I 5,490 5, 153, I09 734,969 5.363,406 52,666,974
Add deferred innows
of resources related
to pensions & OPES I81 ,673,445 181,673,445
Less adjusiments for
accrual ofrevenues (37.260.495) CS. 153.1091 l217.4071 .Q.768,040) l46.399.05 ll
Total government·
wide financial
statements
-74
COUNTY OF HAWAl' l
Notes to the Basic Financial Statements
June 30, 2023
8. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY AGREEMENTS
(SBITAs)
The County has entered into noncancellable agreements with third party vendors for the right
to use their information technology software. These agreements expire at various dates
through December 2027. The interest rate applied of3.92% was an average ofthe borrowing
rate for the new leases in the current fiscal year.
The estimated value ofthe right to use assets and accumulated amortization. amount to
$4,291,773 and $754.908. respectively and the related present value of the remaining
obligations under these agreements amounting to $3,338,893 at June 30, 2023 are included in
long-term debt.
The future minimum payments under these leases at June 30. 2023 arc as follows:
Subscription-Based
Agreement Liabilities
£!:iM.Wl Interest
Year Ending June 30:
2024 $ 1,002.411 s 129,002
2025 1,024.264 89.597
2026 674.928 49,331
2027 637.290 22.900
Total u.u8..82l 1..220 830
9. LEASES
The County leases machinery and equipment under noncancellable leases expiring at various
dates through May 2028. These leases. in which the County will own the e.sset at the end of
the lease, are financed from the resources ofvarious funds.
The estimated value ofthe leased machinery and equipment and accumulated depreciation,
amount to S 18.601.205 and SS,445, 136, respectively, and the related present value ofthe
remaining obligations under these finance leases amounting to $7.054,990 at June 30, 2023
are included in capital assels and long-term dcbl, respectively. These leases include annual
interest rates of 1.01% to 4.67%.
The County also leases land, office facilities and other equipment under noncancellable, in
which the County is only leasing the right to use the asset during the term oflhe agreement,
such leases expiring lhrough December 203 1, with option years that will more than likely be
exercised and will exlend the leases until fiscal year 2038.
. 75.
COUNTY OF HAWAJ'I
Notes to the Basic Financial Statements
June 30. 2023
The future minimum payments under these leases at June 30, 2023 arc as follows:
Other Financing Agreement
Liabilities Lease Liabilities
Prjncjoal Interest Prjncipal lntcrut
Year Ending June 30:
2024 s3,078,809 $ 129,243 $ 2,505,726 $ 482,228
2025 1,911 ,770 78,801 2,570,567 413,005
2026 1,259,547 44,619 2,410,453 346,054
2027 650,467 17,416 2,403,872 281.013
2028 154,397 3.069 1,448,923 231 ,964
2029 . 2033 4,805 ,659 69 1.149
2034. 2038 2,211.482 142.J~l
Total SJ.()54~990 $ 22;!,.1~8 Sl8lS66!6 12~~
10. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo landfill In December 2019, the County closed its landfill located in the city of Hilo.
Under state and federal requirements, the County would have to monitor and maintain this site
for thiny years from the closure date. The estimated cost ofclosure and postclosure is
$26.906,000, based on what it would cost to pcrfonn the required closure and postclosurc care
in 2023. Actual costs may be higher due to inOation, c!ianges in technology, or changes in
regulations. Through June 30. 2023. $23,451.000 was spent on closure and postclosurc care
ofthe landfill. The remaining estimated liability of $3,330,000 is included in the government·
wide statement ofnet position. During the year ended June 30, 2023. $73 ,000 was spent on
closure of the landfill. The County is providing fina ncial assurance fOI' postclosure care and
remediation through self insurance as explained below.
Kealallehe In October 1993. the County closed its Kealakehe landfill in Kona. Under state
and federal requirements, the County would have lo 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 ofclosure and postclosure is $1 7,100,000, based on what it
would oost to perfonn the required closure and postclosure care in 2023. Actual costs may be
higher due to inOation, changes in technology, or changes in regulations. Through
June 30, 2023. $9,553,000 was spent on closure and postclosurc care ofthe landfill.
The remaining estimated liability of$7,547,000 is included in the government-wide statement
ofnet position. During the year ended June 30, 2023, SI 96,000 was spent on closure of the
landfill. The County is providing financial assurance for postclosurc care and remedial ion
through self insurance as explained below.
Pu'uanaltulu 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 Hawai 'i. The present contract
• 76.
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
calls for County employees to perform the daily operations ofthe 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 ofthe contract, the County has no responsibil ity for
remediation, closure or postclosure care. Accordingly, no liability for this landfill is included
in the County's financial statements.
FinancialAssurance For fiscal year 2023, the County has provided for financial resources
that will be available to provide for closure, postclosure care and remediation or containment
of environmental hazards at the above landfills, except Pu'uanahulu. The Environmental
Protection Agency's financial assurance rules include a local government financial test
consisting ofa financial component, a public notice component, and a recordkeeping
component. Local governments are required to satisfy each ofthe three components to pass
the annual test. Management believes that the County has satisfied each of the components of
the local government financial assurance re{!uirements.
In fiscal year 20 I3, the County closed its two metal salvage facilities located near the Hilo and
Kealakehe Transfer Stations. State law requires the County to perform necessary closure
activities, including, but not limited to, the removal ofall remaining solid waste and
performing appropriate site assessments and remedial activities. The estimated liability as of
June 30, 2023 ofapproximately $17,388,676 for the remediation costs associated with these
closures is included in the County's financial statements and is based on closure plans
prepared by a science and engineering consultant contracted by the County, and the current
value of costs expected to be incurred. The liability could change over time due to inflation or
deflation, changes in technology, or changes in laws and regulations governing the
remediation effort.
The County currently maintains and utilizes 7 underground fuel storage tanks to fuel both
official and private vehicles that are used for County business. The tanks range in size from
1,000 to 8,000 gallons. The estimated liability of$ I ,775.000 for the cost to check for ground
contamination and potential cleanup is included in the County's financial statements as of
June 30, 2023.
11. LONG-TERM DEBT
General Obllgnlion Bonds
The County issues general obligation bonds to provide funds for the acquisition and
construction ofmajor capital facilities. These bonds have been issued by the County for the
primary government, component unit activities (see Note 15) and improvement districts.
The County's general obligation bonds are an absolute and unconditional general obligation of
the County for which its full faith and credit are pledged. The principal and interest payments
on the bonds are a first charge on the general fund of the County .
• 77.
COUNTY OF HAWAl'I
Notes to the Basic Finandal Statements
June 30, 2023
The following is a summary ofgeneral obligation bond transactions reported in the
governmental activities se<:tion ofthe government-wide statement of net position for rhe
County for the fiscal year ended June 30, 2023:
Bonds Jssuc Bc1nd Balance Bond llal•n« Duc:WilJ1iirl
Authori7.(d ADl!lYnl July I 2022 l!2IU Rcliremt.'11J$ ~Q.l0.23 One Yrar
20 I 3 Scms B
2013 Scncs C
ZOil Pt ScncsA
s 21.010.000
18.470.000
1.169.000
s 4.9ll.OOO
6,)4 5,000
1.007.647
s tS 2.430.000)
(2.030.000)
t2S.6SSJ
s 2.52S.OOO
UIS.000
911.992
s 2.525.000
2. 1IS.000
26-360
2016 Sent$ A 99.620.000 91.045.000 (4.620.000) S6.42S.OOO U SS.000
2016 S.ri<s 8 13.497j(I() UlS.000 (1372.300) 6. 1$2,SOO 1.442.SOO
20165MesC
20> 6 s.ri<s D
44.SJS.000
28.160.000
29.lll.OOO
21 .660,000
(4.330.000>
!2.6!0.000)
ll.205,000
19.010.000
4.!S0.000
2.785.000
20 16 s.n., E 19.061.150 1S."2.SOO ( 1.706.250) 14.114.2SO 1.796.l;()
2017 Seri« A
2017 S.ncs D
90.000.000
43.47!.000
71.410.000
40.6SO.OOO
(3.285.000)
(2.9!0.000)
7S.12S.OOO
n.100.000
J.•ss.ooo
l.(J90.000
2020 Pl Srncs A 2.437.000 2,437.000 (59.000) 2.371.000 60.000
2020 Pl Series a 3.699.000 J.699.000 (90.000) 3.609.000 91.000
2020 SeriC$ A !9.SI S.000 S9.81l.OOO 59.31 5.000 2.1IS.000
2020 Series 8
2020ScricsC
2JIS.OOO
10.215.000
1,160.000
9,292.SOO
" .160.000)
(967.SOOI 8.32.1.000 1.020.000
2023 S<rics ~ 22222.000 ..!19~ SS7.4?8.7SO 373.428.647 99.000.000 127.675.90!) •144. 7!2.742 29.926.110
t\dd unamortized
premium !02 942 590 59 962 Sil II 87?)63 t6QQ6Mll 65 815 213 6.128,SQI
<M/\~21 l!O UJU!lill& LIO.l12.J!I} 'Sll 682 S66> SSl.O.SSl.025 S16.0St6.ll
General obligation bonds payable reported in the governmental activities section on the
government-wide statement ofnet position at June 30, 2023 are comprised of the following
individual issues:
Public improvement (Pl) and/or refunding bonds:
2013 Series Bat 3.0'Yo to 5.00/t, due through 2023
2013 Series Cal 4.(Wo to 5.0%, due through 2024
2013 Pl Series A at 2. 75%. due through 2048
2016 Series A at 3.00/o to 5.0%. due through 2035
2016 Refunding Series Bat 3.0% to 5.0%, due through 2026
20 l 6 Refunding Series Cat 5.0%, due through 2027
2016 Refunding Series D at 5.00/o, due through 2028
2016 Refunding Series Eat 2.0% to 5.()%, due through 2029
2017 Series A at 5.0%. due through 2037
2017 Refunding Series D at 3.00/• to 5.0%, due through 2032
20'20 Pl Series A at 1.125%, due through 2055
2020 Pl Series B at I. l 25%, due through 2055
2020 Series A at 4.0% to 5.00/o, due through 2040
2020 Series Cat S.00/o. due through 2029
2023 Series at 4.0o/o to 5.0%. due through 2043
Total general obligation bonds payable
-78
2,525,000
4,J 15,000
981,992
86,425,000
6,152.500
25,205,000
19.010.000
14.186.250
75.125.000
37.700,000
2,378.000
3.609,000
59.815,000
8,325.000
99.000.000
~4.._J~t742
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
Annual debr service requ irements to marurity for the above general obligation bonds are as
follows:
Governmental Activities
Fisca l year ending June 30: Princillfil Interest
2024 S 29,926, l 10 S I 8,557,008
2025 31,707.585 18,544,374
2026 30,976,830 17,046,842
2027 32.472,095 15,537,572
2028 32.351,132 13.999,746
2029-2033 126.480,732 51,153,744
2034 -2038 102,465,650 23,918,73 I
2039-2043 47.921,184 6,607, 189
2044 -2048 8,740,573 295,38 l
2049-2053 J,07 l ,851 65,615
2054 -2056 639.QOQ 9 613
Total S44A.._Z52 742 lli.5.7.l~Jl~
Bond Premiums
At June 30, 2023, total unamortized bond premiums were $65,835,283. which arc being
amortized over the remaining life ofthe respccrive bond issues.
Bonds Authorized a.nd Unissued
The County Council has authorized the issuance ofS979.6 million in general obligarion bonds
to finance both specified and unspecified capital improvemenl projects. At June 30, 2023,
$458.8 million was not yet issued.
Subsequent Events On November 15, 2023, the County Council authorized the issuance
of$1 87.0 million in general obligation bonds for the County to finance rhe capital
improvement projects as specified in the capital budget ordinance for the County for rhe
fisca l year ending June 30, 2024.
On Ju ly 18, 2023, $28.5 million of Series F bond anticipation notes were paid using the
proceeds from the Series 2023 general obligation bonds.
Community FacIJities DiSlrict
On March 2, 2023, the County issued Hawai i County Community Facilities District No. 1
2021 (Kaloko Heights Project) Special Tax Revenue Bonds, Series 2023, in the amoum of
$13,055,000, for the purpose of financing 1he costs ofcertain public sewer line improvements
relating to the County's Community Facilities Districl No. 1-2021 (Kaloko Heigh1s Projecr).
Neither the full faith and credit nor the general taxing power of the County or the Stare of
-79
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2023
Hawaii is pledged to the payment of these bonds. These b-Onds are not general obligations of
the County.
General Obligation Bond Anllclp111ion Notes
The following is a summary of general obligation bond anticipation note transactions reponed
in the government-wide statement of net position for the County for the fi scal year ended June
30, 2023:
...... BallnC< llal.
~ Senn F. Nl\1< R·I Al!!l!lml s 7.S00.000
J11lr I 2022 s W!!g Re!jn;mqq s 7.S00.000 s Jyn< JO 2023 s 7.S00.000 Sc~sf. "°1<R·2 7.500.000 7.S00.000 1.500.000
Scrioi F. Nol< R-12 3.000.000 3.000.000 J.000.000
Scncsf. Nol• R-13 3.000.000 3.000.000 3.000.000
S.oo F. Note R-14 1.000.000 1.000.000 1.000.000
Sen"' F. Nole R· IS 1.000.000 1.000.000 1.000.000
Serles F. Not< R-16 1.000.000 1.000.000 1.000.000
Sn its F. Note R· l7 1.000.000 1.000,000 1.000.000 Series F, Note R· l8 1.000.000 1.000.000 1.000.000 Series F. Nole R· l9 1.000.000 1.000.000 1.000.000
S<ries F. Nott R-20 soo.ooo S00,000 S00.000
Scrits F, Nole R·21 soo.ooo S00.000 500.000
Sencs F. N<He R·22 sooooo
S28 500000
sooooo UJJOO.OOQ --W..900 SlJJ00.0.00
The notes bear interest at 4.03% annually and matured on July 19, 2023.
State Revolving Fand Loans
The County has obtained loans to assist in financing mandated wastewater projects fro m the
State Water Pollution Control Revolving Fund (SRF). The purpose ofthis revolving fund is to
provide low-interest, long-term loans and other financial assistance to the four counties in the
state to finance construction ofwastewater projects. The County has twelve projects approved
for fu nding with these loans.
The County's State Revolving Fund Loans are direct borrowings ofthe County for which its
full faith and credit are pledged. The State Revolving Fund Loans are secured by the gross
revenues ofthe County.
-80
COUNTY OF HAWAI'!
Notes to the Basic Financial Statements
June 30, 2023
The schedule below shows the County's SRF transactions for the fiscal year ended June 30,
2023:
Loans Approved Loan Balance Rc1ircmen1s / Loan Balan« Due \Vithin
61Ub~Mi1~!1 filllm!Jll Aub: I 2022 Addilim)1 E.cttgb:t1biU J1.11J.C lQ 202l o..w:.:wi
Cmpool
Conversion s 8.363,773 s 2,032.706 s s (447,838) S 1.S84.US s 4S0.06S
Honol<a'a LCC 4.513,IS8 1,783.837 (183.816) 1.600.021 184.738
Queen
Li!i·uok.afani 9.421 .732 4.054.511 (498.l ll) 3.SS6.400 S00.611
Kalarti.ana'o!e 7.847.04S 4.070.489 (360,925) 3.709.*I 362.733
Kealakehe
WWTPAU 21.162,934 11.522.27 1 (873.187) 10.649.084 871.321
N-Onh Kena 2,690.404 IJ7S.960 (81,2SS) 1.294,701 81.864
Kealakehc
EOlucnt Reuse 8.677,918 1,174.347 (88.201) 1.486.146 89.0Sl
SH Landfill
Closure 23.099,153 11,176,313 (819.075) 14.757,238 827,287
Kcalakehe Scrap
Mei al 8.000.973 • .800,i37 (252,336) 4.548,401 254.866
Lanihau \\IW
Pumps I Q2l 6JI I 023 631 12• 6971 998 934 49 816
S2:J IWI J21 $jA:z21 11> SI 02l6l1 S0.629.>W) s~ 1s~ 161 Lli7.u&6
The remaining loans bear interest at 0.25% to 0.50% exclusive of a 0.25% to 1.00% loan fee
and require payments through fiscal year 2041.
Debt service to maturity for disbursements to date on these projects are as follows:
Governmental Activities
Fiscal year ending June 30: Principal loterest
2024 $ 3,676,386 $ 380,744
2025 3,699,168 349,83 3
2026 3,72 I,962 318,879
2027 3,515,968 287,672
2028 3,308,986 258,859
2029-2033 15,010,526 883,370
2034 2038 9, 134,822 327,230
2039-2041 2. J 17.543 23.100
Total 14.4+1$5..1§1 $2.822.681
Subsequent Eve/I/$ On August 22, 2023, the County executed two new SRF loan
agreements for the Hilo Wastewater Treatment Plant both ofwhich be.ar interest at
1.25%. Drawdowns on these loans totaled $1,224,665 and $4,878,979, respectively.
The County also had additional drawdowns for the Kealakehe Scrap Metal SRF loan
totaling $2,703,050.
- 8 J
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2023
Other General Long-Term Obligations
The following is a summary of other general long-term obl igations transactions for the fisc;i l
yearended June 30, 2023:
Balance Balance Due Within
Jyb: 1,2!m tislditi2ns• ~ml'O~ June JO, ~Q~l Qnc Year
Governmental activi1ies:
Compensated absences $47,085,69 1 $16.654.834 S(IS,167,438) $48.573,087 SI0.867,550
Claims and judgments
(see Note 13} 22,530,978 31.519,029 (11 ,291.057) 42,758,950 10.239,573
Leases and other
financing agreements
(see Note 8) 24.322.453 7.409,827 (6,320,604) 25.411.676 5.584.535
Subscription based
agreement liabilities 4,291 ,773 (952,881) 3.338,892 1.002.411
Landf111costs payable
(see Note I0) 11,071.000 75,263 (269.263) 10,877.000 930.838
Po11ulion remediation
(see Note 10) 17,475.000 (I S,000) (7 1.324) 17.388.676 300,000
Underground Storage
Tank (see Note 10} 1,77~.000 1 .11~.2!!.!I
Total Sl2~.260 1~ SS9.9Js.1U iel:I Q;Z2,.,I61) SISO IZl 2-8J S2.8.9~
• Net ofnew claims liability and existing claims resolved at less than previous estimate.
Historically, the County's general fund has been used to liquidate the majority ofother long
term liabilities, including the other post employment benefit obligation and the compensated
absences since most employees are paid by the general fund.
Fund Balances -Debi Service Funds
The fund balance in the debt service fund s at June 30, 2023 includes $46,498,520, which is
restricted for principal payments on general obligation bonds and $7,908,341. which is
restricted for the payment of interest on the bonds.
Enterpme Fund Notes, Bond aad Loan Payable
On February 12, 2013, the County issued general obligation bonds on behalfof Kula' imano
Elderly Housing Project (Project) to pay off its two notes payable to the U.S. Department of
Agriculture, Farmers Momc Administration with principal and interest balances aggregating
$835, I 08. The Project is responsible for the debt service payment related to their portion of
the bonds, which is also secured with the County's general obligation pledge. Because the
Project is responsible for only a portion ofthe total bonds issued, it was decided that the
Project would continue to make bond payments equivalent to its previous monthly installment
- 82
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
payments of$7,826 on the old notes at 5.547% interest. Under this payment schedule. 1he
Projec1 will make contribu1ions tbrough 2025 of the bonds 2032 maturily dale.
In fiscal year 2021, the Counly made the final scheduled principal payment ofthe bond and
thus, the Project now owes the Counry for the remainder ofthe contributions.
On October 29. 2012, the Counry assumed the loan ofits lessee Ouli Ekahi Partnership with
the Hawai'i Housing Finance and Development Corporation in the amount of$478,430. The
loan is non-interest bearing and matures on February 27, 2041. In exchange, the Counry
assumed ownership ofthe Ouli Ekahi project which consists ofa 33 single fam ily affordable
rental housing project.
The following is a summary ofenterprise fund loan payable transactions for the fiscal year
ended June 30. 2023:
Balance at July I. 2022
Deductions
$ 41.501
<33.411)
Balance at June 30. 2023
Less current portion
Loan payable, net of
current portion
8,090
C8.Q90l
The following is a summary ofthe annual maturities for the enterprise fund loan payable:
Business-type Activities
Fiscal year ending June 30: Principal
2024 8.090
Total t~
Special Assessment Bonds
The Coumy has issued general obligation bonds on behalf of Improvement District No. 18 for
waler improvements {see Note 4). These bonds were then refunded by a portion ofthe 2013
Series A Bonds that were issued. The Improvement District is responsible fo r the paymen1 of
the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement dis1rict's share ofthe refunded bonds matures
annually 1hrough 2027 and bear interest at the previous rates of4.375% lo 4.75%. Total
general obligation bonds payable included in the government-wide statement ofnet position
were $553,666 at June 30, 2023.
The Counry has also issued general obligation bonds on behalf of Improvement District No. 19
for water improvements (see Note 4). The Improvement District is responsible for the payment
ofthe debt service on these bonds, but the Counry remains liable because 1hcy are general
obliga1ions ofthe County. The improvcmen1 di.strict's share ofthe refunded bonds ma1ures
annually through 2048 and bear interest al the previous rates of2.75%. Total general
. 83 .
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
obligation bonds payable included in the government-wide statement ofnet position were
$981,993 at June 30, 2023.
The County has also issued general obligation bonds on behalf of Improvement District No. 20
for sewer improvements (see Note 4). The Improvement District is responsible for the
payment ofthe debt service on these bonds, bu1 the County remains liable because they are
general obligations oflhe County. The improvement district's share ofthe refunded bonds
matures annually through 2055 and bear interest at the previous rates of 1.125%. Total general
obligation bonds payable included in the government-wide statement ofnet position were
$2,378,000 at June 30. 2023.
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 ofthe land. The County acts as
an agent for the propeny owners within the improvement districts to collect assessments
receivable, forward payments to bond-paying agents at appropriate dates and. ifrequired,
administer foreclosure proceedings.
The following is a summary of bond transactions for Improvement District No. 18,
Coastview/Wonderview Water Improvements, No. 19. Kona Ocean View Properties
Subdivision, and No. 20, Lono Kona Sewer Project for the fiscal year ended June 30. 2023:
Balance at July I. 2022 $4.094.716
Deductions Cl 81.057)
Balance at J unc 30. 2023 l3,._9 I 3Ji52
The following is a summary ofthe annual maturities for the improvement district general
obligation bonds:
Fiscal year ending June 30:
2024
2025
2026
2027
2028
2029 -2033
2034 -2038
2039 2043
2044 -2048
2049 -2053
2054 -2056
frios.jp_ru
s 187,251
193,673
199,334
206,245
213 ,416
483,482
525,650
571,1 85
623,573
456,850
2~J.OOQ
loterest s 76,489
70,267
63.795
57,062
50.050
212,621
170.364
123,637
71,860
26,447
4 2(i9
Total Wl.J..lli s 2l!i.agj
-84
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
12. COMMITMENTS AND CONTINGENCIES
Contractual conunitnrent.r-Contractual commitmcnts for capital projec.rs. expenses. and
supplies at June 30, 2023, except in the enterprise funds, are reflected in the balance sheets as
a part of the respective fund balance categories and are as follows:
General fund $ 25,638,107
Capital projects fund 17 1,03 5,664
Hawaii county housing agency 1,106,782
Nonmajor funds 29.734.828
1227.5 15.381
Contractual commitments for the enterprise funds were immaterial.
Intergovernmental revenut.f -The County has received federal and state grants for specifo<:
purposes that are subject 10 review and audit by grantor agencies. Such audits could lead to
requests for reimbursement to the granror agency for expenditures disallowed under terms of
the grants. In the opinion of management ofthe County, disallowed costs, if any, would not
be material.
Claims -Numerous claims and lawsuits have been filed against the County in the normal
course of its operations. A liability for probable losses is included on the govemmcm-wide
statement ofnet position (see Note 13 ). A !though the outcome ofthe various claims and
lawsuits is not presently determinable, in the opinion ofrhe County's Corporation Counsel,
the resolution ofsuch matters will nor have a material adverse effect on the financial condition
ofthe County.
ADA conrplitlllce -The County entered into a stipulated agreement, filed on June 4. 1998,
which relates to the Department ofParks and Recreation (Parks). The agreemcnr required
Parks 10 establish pra<:tices, policies, and procedures regarding its programs, and prepare a
transition plan by the middle ofthe year 2000. The self-evaluation and transition plan for
programs, practices and procedures was completed and approved by the County Council. The
cost impact of implementation is not material because the necessary modifications were
primarily procedural. The second part of this stipulated agreement required the reevaluation
ofall County facilities, which was completed and accepted by the County Counc il on June 30,
2000. Approximately 240 Count)' faciliries were surveyed as part ofthis effort. The tentative
completion date ofall necessary modifications and renovations was 12 years from the dare the
County Council accepted the self-evaluation. The initial (1997-2000) estimated cost of the
modifications necessary to provide equal access to these facilities was SIS. I million, which
would have been spent over the 12-year period. Funding allocated by the County over rhc
initial few years for facilities modifications was S 17.S million, with another $4 million of
federal funding provided through community development block grants over the next 2 years.
The Department of Public Works requested an additional $2 million a year for non-Parks &
Recreation County facilities' ADA renovation projects. Because ofsevere disparities that
surfaced between the original ADA projects' scoping and construction estimates and actual
• 85 .
COUNTY OF HA WAl'I
Notes to the Basic Financial Staterneots
June 30, 2023
scopes and costs, as well as time/delivery issues that came into play because of necessary
pennits and reviews, and design professionals' costs that weren't factored into the effort, the
County sought relief from the Court in the form of both a time extension and reprioritilation
ofsites. As a result, the County obtained approval of a modified 4-year plan wherein
accessibility improvements at the then remaining 35 park sites were requ ired to be completed
by December 3 1, 20 16. The County is engaged in ongoing quarterly briefings with the federal
magistrate judge assigned to this case wherein the County apprises plaintiff's counsel and the
court on its progress, highlighting achievements, noting procedural and pennining concerns
and delays, and constantly updating the status and completion projects for all remaining
projects. Currently, the projected completion date fo r all remaining projects is late 2024. The
balance of the unimproved sites would be deferred indefinitely pending separate
improvement/enhancement projects that would inherently trigger accessibiliry improvements
due to the nature ofeach project's scoping and applicable ADA requirements. Ofthe 3 5 park
sites requiring accessibility improvements under the modified 4-year plan plus an additional
park site (Francis Wong Stadium at Ho'olulu Complex) that was reintroduced into the
transition plan via the court, 23 have been com pleted, I ('Ahalanui) has been pennanently
omitted due to lava inundation, 5 (Pa' auilo, Papa'aloa, Kahuku, NA'ftlehu, and Pahala
Ballfield) have been substantially completed and are pending contract closeout, I (Miloli•i). is
in design and pennitting, I (Parks Maintenance) is being prepared for public bidding for
construction, I (PAhala Pool) has been re-bid and newly awarded for construction and is
pending pennitting issues, and 4 ( Kolekole, NAS, Richardsons, and Disappearing Sands) are
in active construction. The County has encum bered or spent more than S90M on these
remaining 35 projects to date. Further to this, the County has secured additional general
obligation bond funds in the amount ofSIOM dedicated to the completion ofrhe remaining
projects in the active construction or earlier phases ofcompletion. The County had spent
$42.0 million for construction and design consultant costs to complete the 50 park facilities
(some having multiple ADA work being completed) prior 10 the development of the modified
four-year plan. Additionally, the County's ADA Coordinator has access to an operational
account ofat least $50,000 to handle requests for reasonable accommodations to assist County
departments with addressing requests concerning specialized access needs. The procedures
for these requests have been finalized and are available on 1.he Department of Human
Resources' web page under the heading -Procedure for Requesting Modifications to County
of Hawai'i Facilities, Programs, or ScJVices-. Also, Parks has a Recreation Specialist who
reviews and assesses requests for reasonable accommodations involving recreational facilities
and programs. and recommends specific actions on those requests. amongst other duties.
13. RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft, damage, and destruction
ofassets; errors and omissions; work-related injuries to employees; and natural disasters.
County obtains property insurance, which includes coverage on a high deductible basis for
hurricane, flood, earthquake, and lava. it also purchases insurance coverages for flood on
selected struc1urcs, general and professional liability for emergency medical services, general
liability for lifeguards (waster safety), aviation liability for helicopter operations. retired senior
-86
COUNTY OF HAWAJ·J
Notes to the Basic Financial Sta temenls
June 30, 2023
volunteer liability coverage, auto liability for both mass transit buses and subsidized police
vehicles. auto physical damage coverage for botti police fleet vehicles and the Kohala Ranch
fi re truck, and property insurance on specific housing projects if not covered contractually.
The County is substantially self-insured for liability and for all other exposures including
workers' compensation. As such, emphasis is on claims management and safety/risk control
to protect the public and employees and to mitigate loss costs. The liability for claims and
judgments is reported on the government-wide statement ofnet position and the majority will
be liquidated from the County's general fund.
Liabilities are reported when it is probable that a loss has occurred and the amount ofthat loss
can be reasonably estimated. These losses include an estimate ofclaims that have been
incurred but not reported (IBNR). Claim liabilities, including IBNR. are based on the
estimated ultimate cost of settling the claims, and include incremental c-0sts fo r the hiring of
special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case
review ofall claims and the application of historical experience to outstanding claims.
Estimates ofIBNR are based on historical experience. The liability for claims and judgments
is reported on the government-wide statement ofnet position. At June 30, 2023, the amount
ofthis liability was $42,758,950. This is the County's best estimate based on available
infonnation.
Changes in the reported liability since July I, 2021 are given below.
General Workers' Total
Liability Compensation 1i1tbility
Balance at June 30, 2021 LJJ.Z.SUU i..12 9.98.281 s 24..m.l!,8
Incurred claims (including IBNR)• 2,540,743 6.430.737 8.971.480
Claim payments <3.823.574) (6.874, 716> (I 0.698.320>
Balance at June 30, 2022 ~ 9.976 700 S....U..S5--t.iia ~...22~7B
Incurred claims (including IBNR)' 28,279,081 3,239,948 31.519.029
Claim payments
Balance at June 30, 2023
(5.692.436)
S~J2 563 :W
(5.598.62))
s 10. 195.60.5
Cl 1.221.057)
$ 42.15.&.9.5.0
•Net of new claims liability and existing claims resolved at less than previous estimate.
14. EMPLOYEE BENEFIT PLANS
The County recognized a total net pension expense of$43,496,910 for the year ended June JO.
2023 for the following two pension plans covering its employees.
Pensioru -Employees' Retire.,ent System of the State ofHawai'i
Pension Plan Description· All eligible employees of the State and counties are provided with
pensions through a cost-sharing multiple-employer defined benefit pension plan administered
by the Employees' Retirement System of the State ofHawai'i (ERS). Benefit tem1s,
• 87.
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
eligibility. and contribution requirements are established by HRS Chapter 88 and can be
amended through legislation. The ERS issues a publicly available financial report that can be
obtained at ERS's website: htm://ers.e.lia"aii.uov/.
Benefits Provided -The ERS provides retiremcm, disability, and death benefits that are
covered by the provisions of the noncontributory, contributory, and hybrid reti rement plans.
The three plans provide a monthly retirement allowance equal to the benefit multiplier
(generally 1.25% or 2%) multiplied by the average final compensation multiplied by years of
credited service. The benefit multiplier decreased by 025% for new hybrid and contributory
plan members hired after June 30, 2012. Average final compensation is based on the five
highest paid years ofservice excluding the payment ofsalary in lieu ofvacation for members
hired after June 30, 2012. For those hired between January I, 1971 and June 30. 2012, AFC is
based on the three highest paid years ofservice excluding the payment ofsalary in lieu of
vacation. If the employee was hired prior to January I, 1971, the AFC is the average salary
earned during the five highest paid years ofservice, including the payment of salary in lieu of
vacation, or three highest paid years of service. el\cluding the payment of salary in lieu of
vacation.
For members hired before July I. 2012, the original retirement allowance is increased by 2.5%
each July I following the calendar year ofretirement. This cumulative benefit is not
compounded and increases each year by 2.5% ofthe original retirement allowance without a
ceiling (2.5% of the original retirement allowance the first year. 5.0o/o the second year. 7.5%
the third year, c1c.). For members hired after June 30. 2012 the post·retircmem annuity
increase was decreased to 1.5% per year.
Retirement benefits for certain groups, such as police officers, firefighters, some investigators,
sewer workers, judges. and elected officials. vary from general employees.
Noncon!ri~utory Plan
Retirement Benefits -General employees' retirement benefits arc determined as 1.25% of
average final compensation multiplied by the years ofcredited service. Employees with
I 0 years ofcredited service are eligible to retire at age 62. Employees with 30 years of
credited service are eligible to retire at age 55.
Disability Benefits· Members are eligible for service-related disability benefits
regardless of length of service and receive a lifetime pension of35% oftheir average
final compensation. Ten years ofcrediled service is required for ordinary disability.
Ordinary disability benefits are detem1ined in the same manner as retirement benefits but
are payable immediately, without an actuarial reduction, and at a minimum of 12.5% of
average final compensation.
Death Benefits • For service-connected deaths, the surviving spouse/reciprocal
beneficiary receives a monthly benefit of30% ofthe average final compensation until
remarriage or re-entry into a new reciprocal beneficiary relationship. Additional benefits
-88.
COUNTY OF HAWAl' I
Notes to the Basic Financial Statemenu
June 30, 2023
are payable to surviving dependent children up to age 18. If there is no spouse/reciprocal
beneficiary or dependent children, no benefit is payable.
Ten years ofcredited service is required for ordinary death benefits. For ordinary death
benefits, the surviving spouse/reciprocal beneficiary (until remarriage/reentry into a new
reciprocal beneficiary relationship) and dependent children (up to age 18) receive a
benefit equal to a percentage ofmember's accrued maximum allowance unreduced for
age or, if the member was eligible for retirement at the time ofdeath, the surviving
spouse/reciprocal beneficiary receives I 00% joint and survivor lifetime pension.
Contributory Plan for Employees Hired Prior to Julv I. 2012
Retirement Benefits· General employees' retirement benefits are de1ermined as 2% of
average final compensation multiplied by the years ofcredited service. General
employees with 5 years ofcredi1ed service are eligible to retire at age 55.
Police and firefighters' re1irement benefits are determined as 2.5Yo ofaverage final
compensation for each year ofservice up 10 a maximum of80%. Police and firefighters
with I 0 years ofcrediled service are eligible to retire at age 55.
Disability Benefits· Members are eligible for service-related disability benefits
regard less oflength ofservice and receive a lifetime pension of50% oftheir average
final compensation. Ten years ofcredited service is required for ordinary disability.
Ordinary disability benefits are determined as I. 75% ofaverage final compensa1ion
multiplied by the years of credit services and are payable immediately, without an
actuarial reduction, and at a minimum of30% ofaverage final compensa1ion.
Death & .nefits • For servioe-connec1ed deaths, the surviving spouse/reciprocal
beneficiary receives a lump sum payment ofthe member's contribulions and accrued
interest plus a monlhly benefit of 50% ofthe average final compensation until remarriage
or re-entry into a new reciprocal beneficiary relationship. Ifthere is no surviving
spouse/reciprocal beneficiary, surviving children (up to age 18) or dependent parents are
eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent
children/parents, the ordinary death benefit is payable to the designated beneficiary.
Ordinary death benefits arc available to employees who were active at time ofdca1h with
at least I year ofservice. Ordinary dealh benefits consist ofa lump sum paymcnl ofthe
member's contributions and accrued interest plus a percentage of the salary earned in the
12 months preceding dea1h. or 50% Joint and Survivor lifetime pension if1he member
was not eligible for rc1irement at che lime ofdeath but was credited with al lcas1 10 years
ofservice and designated one beneficiary, or I 00% Joint and Survi•or lifetime pension if
lhe member was eligible for retiremenl at the time ofdeath and designated one
beneficiary.
. 89
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
Contributory Plan for Emoloyees Hired After June 30. 2012
Retirement Benefits -General employees' retirement benefits are detennined as I.75%
ofaverage final compensation multiplied by the years ofcredited service. General
employees with 10 years ofcredited service are eligible to retire at age 60.
Police and firefighters' retirement benefits are detennined as 2.25% ofaverage final
compensation for each year ofservice up to a maximum of 80%. Police and firefighters
with I 0 years ofcredited servioe are eligible to retire at age 60.
Disability and Death Benefits -Members are eligible for service-related disabilily
benefits regardless oflength ofservice and receive a lifetime pension of 50% oftheir
average final compensation plus refund ofcontributions and accrued interest. Ten years
ofcredited service is required for ordinary disabilily. Ordinary disability benefits are
1.75% ofaverage final compensation for each year ofservice fo r police and firefighters
and are payable immediately, without an actuarial reduction, at a minimum of300/o of
average final compensation.
Death benefits for contributory plan members hired after June 30, 201 2 are generally the
same as those for contributory plan members hired June 30. 2012 and prior.
Hybrid Plan for Emoloyees Hired Prior to July l. 2012
Retirement Benefits -General employees' retirement benefits are determined as 2"/o of
average final compensation multiplied by the years ofcredited service. General
employees with 5 years ofcredit.ed service are eligible to retire at age 62. General
employees with 30 years ofcredited service are eligible to retire at age 55.
Disability Benefits -Members are eligible for service-related disability benefits
regardless of length ofservice and receive a lifetime pension of35% oftheir average
final compensation plus refund oftheir contributions and accrued interest. Ten years of
credited service is required fo r ordinary disability. Ordinary disability benefits are
determ ined in the same manner as retirement benefits but are payable immediately,
without an actuarial reduction, and at a minimum of25% ofaverage final compensation.
Death Benefits -For service-connected deaths, the surviving spouse/reciprcx:al
beneficiary receives a lump sum paymen t of the member's contributions and accrued
interest plus a monthly benefit of500!. ofthe average final compensation until remarriage
or re-entry into a new reciprocal beneficiary relationship. If there is no surviving
spouse/reciprocal beneficiary, surviving children (up to age 18) or dependent parents are
eligible for the monthly benefit. If there is no spouse/reciprocal beneficiary or dependent
children/parents, the ordinary death benefit is payable to the designated beneficiary.
-90
COUNTY OF HAWAI'l
Notes to the Basic Financi.al Statements
June 30, 2023
Ord inary death benefits are available to employees who were active at time ofdeath with
at leaS1 5 years ofservice. Ordinary death benefits consist ofa lump sum payment ofthe
member's contributions and accrued interest multiplied by 150%. or 50% Joint and
Survivor lifetime pension if the member was not eligible for retirement at the time of
death but was credited with at least I 0 years ofserv ice and designated one beneficiary, or
100% Joint and Survivor lifetime pension ifthe member was eligible for retirement at the
time ofdeath and designated one beneficiary.
liybrjd Plan for Emp!ovees tljred After June 30. 2012
Retirement Benefits -General employees' retirement benefits are determined as 1.75% of
average final compensation multiplied by the years ofcredited service. General
employees with 10 years ofcredited service are eligible to retire at age 65. Employees
with 30 years ofcredited service are eligible to retire at age 60. Sewer workers. water
safety officers, and EMTs may retire with 25 years ofcredited service at age 55.
Disabiliiy and Death Benefits -Provisions for disability and death benefits generally
remain the same except for ordinary death benefi ts. Ordinary death benefits are available
to employees who were active at time ofdeath with at least 10 years of service. Ordinary
death benefits consist ofa lump sum payment ofthe member's contributions and accrued
interest multiplied by 1200/o, or 500/o Joint and Survivor lifetime pension ifthe member
was not eligible for retirement at the time ofdeath and designated one beneficiary. or
100% Joint and Survivor lifetime pension if the member was eligible fo r retirement at the
time ofdeath and designated one beneficiary.
Contributions -Contributions are established by HRS Chapter 88 and may be amended
through legislation. The employer rate is set by statute based on the recommendations ofthe
ERS actuary resulting from an experience study conducted every five years. Since July 1,
2005, the employer contribution rate is a fixed percentage ofcompensation. including the
normal cost plus amounts required to pay for the unfunded actuarial accrued liabilities. The
contribution rates for fiscal year 2023 were 41.00% for police and firefighters and 24 .0% for
all other employees. Contributions to the pension plan from the County for the year ended
June 30, 2023 , 2022. and 202 1 were $63,900.644, $61,913,089, and $63,953,781,
respectively.
The employer is required to make all contributions for members in the noncontributory plan.
For contributory plan employees hired prior to July I, 20 12, general employees are required to
contribute 7.8% oftheir salary and police and firefighters are required to contribute 12.2% of
their salary. For contributory plan employees hired after June 30, 201 2, general employees are
required to contribute 9.8% oftheir salary and police and firefighters are required to contribute
14.2% of their salary. Hybrid plan members hired prior July I, 2012 ore required to contribute
6.0% oftheir salary. Hybrid plan members hired after June 30, 2012 arc required to contribute
8.0% oftheir salary.
-91
COUNTY OF HAWAl'l
Notes to the Basic Financial Statements
June 30, 2023
Pension liabilities, pension expense, and de/eTTed outflows ofresources and deferred
inflows ofresources rtlaud to pensions -At June 30. 2023, the County reported a liability of
$584,219,290 for its proportionate share of the net pension liability. T11e ntt pension liability
was measured as ofJune 30, 2022, and the total pension liability used 10 calculate the net
pension liability was detennined by an ac1uarial valuation as oflhat dale. The County's
proportion ofthe net pension liability was based on the ac1ual employer contributions to the
pension plan relative 10 1he contributions ofall participating employers. At June 30, 2022, the
County's proportion was 4.51%, which was a decrease of .1 2% from its proportion measured
as ofJune 30, 202 1.
For the year ended June 30, 2023, the County recognized pension expense ofS43,498,747.
At June 30. 2023. the County reported deferred outnows ofresources and deferred inflows of
resources rela1ed 10 pensions from lhe following sources:
Deferred Deferred
Ou1nows Inflows of
of Re~~rce~ Resources
Differenc.es between expec1ed and actual experience $ 13.648,778 $ 26.450.233
Net difference be1wcen projected and actual investment
earnings on pension plan investments 30.910.408
Changes in assumptions 2.360,263 3.637.168
Changes in proportion and differences between employer
contributions and proponionate share ofcontributions 24,934,567 25.281 .650
County contribulions subsequent to the measurement date ~l.2Q2.~4
Total il04~84U52 ~2]..Q.ill
$63,900,644 reported as deferred outflows ofresources related to the County's contributions
to the pension plan subsequent 10 the measurement daie will be recognized as a reduction of
the net pension liabili1y in the fiscal year ended June 30, 2024.
-92
COUNTY OF HAWAl'I
NottS to the Basic Financial Stattmtnts
June 30, 2023
01her amounts reported as deferred oulOows of resources and deferred inOows ofresources
related to pensions will be recognized in pension expense as follows:
Net Deferred
Outflows
(Inflows)
fiscal Year Endjng JuneJQ. of Resources
2024 s (12.289.391)
2025 (16,457.367)
2026 (22.S66.768)
2027 6,529,486
2028 <SS 1.811)
s <45.JJ.5.85u
Actuarial assumptions -The total pension liability in the June 30, 2022 ac1uarial valuation
was de1crrnined using the following actuarial assumptions, applied to all periods Included in
the measurement:
Inflation 2.50%
Payroll growth rate 3.500/o per annum
Salary increases 3.75o/• -6.75%, including inflation
Investment rate ofreturn 7.00% per annum. including inflation
Cost of living adjustments 2.50".4 / 1.50-/o
Monality rates used in the actuari1l "1luation as ofJune 30, 2022 "ere based on the
following:
Active members -Multiples of the Pub-20 I0, Employee Table for acti\e cmplO)CCS
based on the occupation ofthe member.
Healthy retirees -The 2022 Public Retirees of Hawai'i mortality 1ablc, The rates are
projected on a fully generational basis by the long-term rates ofsculc UMP from the year
2022 and with multiplier and set bucks based on plan and group experience.
Disabled retirees -Base Table for healthy retiree's occupation. set fot"ard 3 years,
generational projection using the UMP projection table from the year 2022 . Minimum
monality rate ofJ.5% for males and 2.5o/• for females.
The acruarial assumptions used in the June 30, 2022 valuation were based on the results ofan
ectuarial experience study as ofJune JO, 2021. with most assumptions based on the period
from July I. 2016, through June 30. 2021 . The major changes to assumpcions resulting from
the 2021 actuarial experience stud)' "'ere (I) to update the base mortalil)' tables "'ith data
through June 30. 2021 and (2) recommended a higher sal81)' increase schedule.
-93.
COUNTY OF HA WAI'!
Notes to the Basic Financial Statements
June 30, 2023
The long-tenn expected rate ofrelum on pension plan investments was delennined using a
"lop down approach" in which best-cs1imate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) arc developed for
each major asset class. These ranges arc combined to produce the long-tenn expected rate of
return by weighting the expected nominal real rates of return by lhe target asset allocation
percentage.
The target allocation and best estimates ofgeometric rates ofreturn for each major asset class
are summarized in the following table:
Long-Term
Strategic Allocation Target Expected Rate of Expected
(Risk-Based C lasses) Allocation Return Volatility•
Broad growth 62.50% 8.00% 15.80%
Diversifying Strategies 37.50% 5. 100/o 8.50%
100.00~
•Uses an expected inflation rate of 2. 10%.
Discount rate -The discount rate used 10 measure the total pension liability was 7.00%, which
was the same rate used at the prior measurement date. The projection ofcash flows used to
determine the discount rate assumed that employee contributions will be made at the current
contribution rate and that contributions from the County will be made at statutorily required
rates, actuarially determined. Based on those assumptions, the pension plan's fiduciary net
position was projected to be available to make all projected future benefit payments ofcurrent
active and inactive employees. Therefore, the long-tcnn expected rate ofreturn on pensi.on
plan investments was applied to all periods ofprojected benefit payments to determine the
total pension liability.
Sen$·itivity ofthe County'sproportionate share ofthe net pension liability to changes In tire
discount rate -The following presents the County's proportionate share ofthe net pension
liability calculated using the discount rate of7.00%, as well as what the County's
proportionate share ofthe net pension liability would be ifit were calculated using a discount
rate that is I-percentage-point lower (6.00%) or I-percentage-point higher (8.00%) than the
current rate:
1% Decrease Current Discount 1% Increase
(6.000/o) Rate (7.00%) (8.00%)
County's proportionate share of
the net pension liability L809.9U.6JJl S 584 219..2.20 l»L389~U2
Pension plan fiduciary netposition Detailed information about the pension plan· s fiduciary
net position is available in the separately issued ERS Annual Comprehensive Financial Report
(ACFR) that includes financial statements and required supplementary information .
. 94.
COUNTY OF HAWAl'l
Notes to the Basic Financial Statements
June 30, 2023
Payables to the pension plan -At June 30, 2023, the annual amount payable to the ERS
totaled SS,956,097. which represents the employer contribution for the second half ofthe
month ofJune 2023, as required by HRS. and the excess pension cost under Act I53/SLH 2
12 REFER HRS Section 88-100 for fiscal year ended June 30, 2023.
Other Pension Plans -Couaty of Hawal'I Bandsmen Pension System
The County also sponsors a nonqualified, governmental single employer defined benefit
pension plan for members ofthe County Band (County ofHawai'i Bandsmen Pension
System) who are or were ineligible for benefits under ERS and whose employment began
before June I, 1990. Under HRS Chapter 88. the County Pension provides retirement benefits
that are computed based on the average annual salary during the last I 0 years ofemployment
with a minimum pension amount ofSSO per month. There are no assets accumulated in a crust
for the payment ofbenefits.
As ofthe valuation date of June 30, 2023, there were 13 inactive employees or beneficiaries
receiving benefits: 9 inactive employees not yet receiving benefit payments; and 4 active
members.
Pension liabilities, pension expense, and deferred outflows ofresourct.f and deferred
inflows ofresources related to pensions -At June JO, 2023. the County reported a liability of
S806. 764. The total pension liability was measured as ofJune 30, 2023 based on an actuarial
valuation as ofJune 30, 2023.
For the year ended June 30, 2023, the County recognized pension payments ofS32, 185 and a
negative pension expense ofSl,83 7.
Actuarial assu mptions -The total pension liability in the June 30, 2023 actuarial report was
detennined using the following actuarial assumptions. applied to all periods Included in the
measurement:
lnOation 2.SOo/,
Salary increases 3.50"/e, including inOation
The average ofthe S&P Municipal Bond 20 Year High Grade and Fidelity GO AA-20 Year
published yields was evaluated to detennine the discount rate. The selected rate was 3.99"/o.
-95
COUNTY OF HAWAl'I
Notes to th e Basic Financial Sta temenls
June 30, 2023
The following presents the County's total pension liability calculated using the discount rate
of3.99"/o, as well as what the County's total pension liability would be if it were calculated
using a discount rate that is I-percentage-point lower (2.990/o) or I -percentage-point higher
(4.99%) than the current rate:
County's total pension liability
Io/t Decrease
(2.99%)
Lm.188
Current Discount
Rate (3.99%)
t. 1ilU4
1% Increase
(4.99%) s 206.8~1
Schedule orChanges in Total Pension Liability
Measurement year ending June 30,
Total Pension Liability
Service cost
Interest
Difference between expected and ac
Changes ofassumptions
Benefit payments
Net C hange in Total Pension Liab
tual experience
lllty
s 6,747
30.680
(7,564)
(31,700)
02.185>
(34,022)
Total Pension Liabilily -Bcgin•i•
Total Pension Liability-Ending
g 840.786
L&Q.4.144
Post-Retirement Benefits
In addition to providing pension benefits., the County is required by state statll!e (HRS Chapter
87A) to contribute to the Hawai'i Em ployer-Union Health Benefits Trust Fund (the EUTF).
The EUTF is an agent, multiple-employer defined benefit plan providing certain healthcare
and life insurance benefits to all qualified retirees, active employees, their dependents and
their beneficiaries.
Benefits Provided-Chapter 87 A ofthe HRS grants the authority to establish and amend the
benefit terms to the board oftrustees ofthe EUTF. The EUTF currently provides medical.
prescription drug, dental, vision, chiropractic. supplemental medical and prescription drug.
and group life insurance benefits for retirees and their dependents.
• 96
COUNTY OF HAWAl'l
NotH to the Bas ic Financial Statements
June 30. 2023
The following table provides a summary ofthe number ofemployees covered by the benefit
terms as ofJuly I, 2022.
Inactive employees or beneficiaries currently receiving benefits 1,800
Inactive employees entitled but not yet receiving benefit payments 210
Active employees ~
W9
Contributions -The County's contribution levels are established by Chapter 87A of the HRS.
The county was required to contribute 100% ofthe ARC starting in fiscal year2019. The
ARC represents a level of funding that is sufficient to cover, I) the normal cost. which is the
cost ofthe other postemployment benefits attributable to the current year ofservice: and 2) an
amOf'tization payment, which is a catch-up payment for past service costs to fund the unfunded
actuarial accrued liability over the next thirty years. For the fiscal year ended June 30. 2023,
contributions to the OPEB Plan from the County totaled $42,910,000 which resulted in an
average contribution rate ofapproximately 20. 7% ofcovered-employee payroll.
For employees hired prior to July I. 1996, the County pays the entire monthly healthcare
premium for employees retiring with l 0 or more years ofcredited service, and 50% ofthe
monthly premium for employees retiring with fewer than l 0 years ofcredited service. The
current (pay-as-you-go) premium costs are paid by the respective funds but the net other
postemploymcnt benefit obligation is paid by the General Fund.
For employees hired after June 30. 1996, and who retire with fewer than I 0 years ofservice,
the County makes no contributions. For those retiring with at least l 0 years but fewer than 15
years ofservice, the County pays 50% ofthe retired employees· monthly Medicare or non
Medicare premium. For employees hired afte.r June 30, 1996, and who retire with at least 15
years but fewer than 25 years ofservice, the County pays 75% ofthe retired employees·
monthly Medicare or non-Medicare premium. For those retiring with over 25 years ofservice.
the County pays the entire healchcare premium.
For employees hired after June 30, 200 I, and who retire with fewer Chan I 0 years of service,
the County makes no contributions. For those retiring with at least l 0 years but fewer chan 15
years ofservice. the County pays 50% of the retired employees' monthly Medicare or non
Medicare premium based on the self-plan. For employees hired after June 30. 200 I, and who
retire with at least 15 years but fewerthan 25 years ofservice. the County pays 75% ofthe
retired employees' monthly Medicare or non-Med icare premium: for those retiring with over
25 years ofservice, the County pays the entire healthcare premium .
. 97.
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2023
For active employees, the employee's contributions are based upon negotiated collective
bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
Net OPEB liability-The County's net OPEB liability was measured as ofJuly I, 2022. and
the total OPEB liability used to calculate the net OPEB liability was detcnnined by an
actuarial valuation as of that date. There were no changes between the measurement date, July
I, 2022, and the reporting date, June 30, 202.3, that are expected to have a significant effect on
the net OPEB liability.
Actuarial assumptions -The total OPEB liability in the July I, 2022 actuarial valuation was
detenn ined using the following actuarial assumptions, applied to all periods included in the
measurement, unless otheiwisc specified:
Inflation 2.50%
Salary increases 3. 75% • 6.75%, including inflation
Payroll growth rate 3.50%
Investment rate of return 7.00%
Healthcare cost trend rates
PPO Initial rates of6.40%; declining to a rate of 4.25% after
22 ye.ars
HMO Initial rate of6.40%; declining to a rate of4.25% after
22 years
Pan B & base monthly Initial rares of 5.00%; declining to a rate of 4.25%
contribution after 22 years
Dental 4.000/o
Vision 2.50%
l.,ife insurance 0.00%
Mortality rates used in the actuarial valuation as ofJuly 1, 2022 were based on the following:
Active members -Multiples of the Pub-2010, Employee Tables for active employees
based on the occupation of the member.
Healthy retirees -The 2022 Public Retirees ofHawai'i mortality tables. The rates are
projected on a fully generational basis by the long-term rates ofscale UMP from the year
2022 and with multipliers and setbacks based on plan and group experience.
Disabled retirees -Base Table for healthy retirees' occupation. set forward 3 years,
generational projection using the UMPP projection table from the year 2022. Minimum
mortality rate of3.5% for males and 2.5% for females .
. 98.
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
The actuarial assumptions used in the July I. 2022 valuation were based on the experience
study covering the five year period ending June 30, 2022 as conducted for the Ilawaii
Employees' Retirement System (ERS).
A Single Discount Rate of7.00% was used to measure the total OPEB liability. This Single
Discount Rate was based on the expected rate ofreturn on OPEB plan investments of 7.00%.
Beginning with the FYEl9 contribution, the funding policy ofthe County of Hawaii is to pay
the recommended actuarially determined contribution. which is based on layered. closed
amonization periods. In July 2020, the Governor's office issued the Tenth Proclamation
related to the Covid-19 Emergency, allowing employCTS of the EUTF to suspend ACT 268
contributions for fiscal year ending June 30, 2021 and instead limit their contribution amounts
to the OPES benefits due. This relief provision related to OPES funding was extended to the
fi scal year ended June 30, 2022 and 2023 by Act 229, Session Laws ofHawai'i 2021. The
EUTF's fiduciary net position is still expected to be available to make all projected future
benefit payments ofcurrent plan members. Therefore, the long-term expected rate ofreturn
on the EUTF's investments was applied to all periods of projected benefit payments to
determine the total OPEB liability.
The target al location and best estimates ofarithmetic rates of return for each major asset class
are summarized in the following table:
Long-Term
Strategic Allocation Targc1 Expected ReaI
(Risk· Based Classes) Allocation Rate ofReturn
Global equity 27.50% 6.62%
Private equity 12.500/o 11.72%
Real asse.ts 10.00% 6.59"/.
Trend following 10.00% 4.53%
Private Credit 8.00% 6.3 8%
Long treasuries 6.00% 2.32%
U.S. microcap 6.00% 8.28%
Alternative risk 5.00% 3.74%
premia
Global options 5.00% 4.45%
Reinsurance 5.00% 4.81%
TIPS 5.00% I.JS%
100.00%
-99.
COUNTY OF HA WAI'!
Notes to the Basic Financial Statements
June 30, 2023
Changes In the Net OPEB Liability:
The following schedule presents the changes in the net OPEB liability for the fiscal year
ending June 30, 2023:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at June 30, 2022 $ 601.3WJ.,l $ 289 809 720 $ 3 I I 50.3~ill
Changes for the fiscal year:
Service cos1 I 3,200,983 13,20-0,983
Interest on the total OPEB liability 41 ,857,781 41,857,781
Employer contributions 38,439,395 (38,439,395)
Net investment income (5,4 10,114) 5,410,I 14
Benefit payments (19,891 ,212) (19,891 ,212)
Administrative expense (24, 126) 24,126
Changes ofassumptions (14,475,674) ( 14,475,674)
Difference between expected
and actual experience
Other
(50,903 ,860)
I 910
(50,903,860)
(J.910)
Net changes $ £30.21 !.982) $ 13. 115.853 $ (43.327.835))
Balance at June 30, 2023 $ 571. 101.431 $.302 925.513 $ 26.8.122.8.5.8
The significant changes ofassumptions included the updating of the demographic assumptions.
during the measurement period, to reflect the 2022 ERS Actuarial Experience Study and
the updating ofthe short-term healthcare trend assumptions.
Sensitivity oft/re 11e1 OPEB /iabl/ity to clta11ges i11 tire disco11111r111e -The following presents
the net OPEB liability ofthe County, as well as what the County's net OPEB liability would
be if it were calculated using a discount rate that is I-percentage-point lower (6.00%) or 1
percentage-point higher (8.00%) than the current discount rate:
1% Decrease Current Discount 1% Increase
(6.00%) Rate (7.00%) (8.00%)
Conney's net OPEB liability $ 356,5,59,610 $ 268 175. 858 $ 198.330 384
• 100
COUNTY OFHAWAl' I
Notes to the Basic Financial Statemen ts
June 30, 2023
Sensitivity oftlie 11et OPES liability to changes /11 tire l1ealtl1care cost tre111/ r11tes -The
following presents the net OPES liability ofthe County, as well as what the County's net
OPES liability would be if it were calculated using a healthcare cost trend rate that is !
percentage-point lower or I-percentage-point higher than the current healthcare cost trend
rate:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
County's net OPEB liability L 194 749 881 $ 268. I Z5,.W, U.62.111..831
For the year ended June 30, 2023, the County recognized OPEB expense of$I7,485,318. Al
June 30, 2023, the County reported deferred outflows ofresources and deferre.d inflows of
resoun::es related to pensions from the following sources:
Deferred Deferred
Outflows In flows of
ofResources Be~Olltl<£~
Difference between expected and actual experience $ 3,870,717 $ 81.085.326
Changes of assumptions 2,781,428 14,308,660
Net difference between projected and actual earnings on
OPEB plan investments 890,677
County contributions subsequent 10 the measurement date ~,,2 IQ,QQQ
Total $_5J)A52..822 $ 95,193..286
$42,910,000 reported as deferred outflows of resources relaied to the County's contributions
to the OPEB plan subsequent to the measurement date will be recognized as a reduction of the
net OPEB liability in the fiscal year ended June 30, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows ofresources
related to pensions will be recognized in pension expense as follows:
Net deferred
inflows of
Fiscal Year Ending June 30. resources
2024 $ ( 16.627,908)
2025 (17,493,814)
2026 (20, l 52,610)
2027 (12,302,588)
2028 ( l 2,178,462)
Thereafter (9.095.782}
$ <&1 851 !Ml
-101
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
The EUTF issues a publicly available financ ial report that includes financial statements and
required supplementary information, which is available on-line at their web-site
www.eutf.hawaij.goy or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
Deferred Compensation Plan
County employees are permitted to participate in a deferred compensation plan of the State of
Hawai'i, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits
eligible employees to defer a portion oftheir salary until future years by contributing to a fund
managed by a plan administrator. The deferred compensation amounts are not available to
employees until term ination, retirement, death, 01· unforeseeable emergency.
All plan assets are held in a trust fund to protect them from claims ofgeneral 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 offunds
and assets in the plans, but does have the duty of due care that would be required ofan
ordinary prudent investor. Therefore. the deferred compensation plan assets are not repo11ed
in the accompanying basic financial statements.
IS. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30, 2023, the carrying amount ofcash, time certificates ofdeposit and money market
funds of$60,720,601, with bank balances of $61,204,673 were held by the County on behalf
of the Department. These balances were fully insured or collateralized with securities held by
the County's agent in the County's name.
The deposits and investments include cash received by the Department that is restricted as to
use and is recorded as a restricted asset. Such funds amounted to $888,225 at June 30, 2023.
Capital Assets
The Department began operations as ofJanuary I, 1950. At that date, the uti lity 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 I, 1924 to December 31, 1949, less
accumulated depreciation. Acquisitions prior to 1924 and acquisitions by gill or grant prior 10
1950 are not included in utility plant. Additions to utility plant since January I, 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.
-102
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
Depreciation on the Department's utility plant assets in service is computed using the
straight-line method over the estimated useful lives ofthe assets as follows:
Structures and improvements 40 to 50 years
Machinc.ry and equipment 5 to 25 years
Water systems 10 to 40 years
The capital assets ofthe Department at June 30, 2023 were as follows:
Depreciable assets
Uti lity plant in service $603,842.3 75
Less: accumulated depreciation 023.339.6221
280,502,753
Nondepreciable assets
Preliminary survey and investigation charges 1,416, 107
Construct ion work in progress 8,689, 122
Land and rights 5.376.240
15,481 ,469
Right to use lease assets
Land 226,050
Equipment 57,470
Less: accumulated amortization (58.9721
224,548
Right to use SBITA assets 66,313
Less: accumulated amonization (52.198)
14.11 5
Net capital assets m6J22_._su
• 103 •
COUNTY OF HAWAl' I
Notes to the Basic Financial Statemen ts
June 30, 2023
The following is a summary ofchanges in capi1al assets during the fiscal year ended June 30,
2023.
Nondepreciable assets
L.and and rights
Preliminary suJVey and
in•estigation charges
Col\Slruction work in progress
Total capital assets nol being
dcpreciared
Depreciable assets
Utility plant in service
Less accumulated deprecialion
TOlal capital assetS being
depreciated
Right lo use lease assets
Land
Equipment
Accumulated amortization
Land
Equipmont
Tol81 righl to use lease assets
Right 10 use SBITA assets
Accumulated amortization
Total right to use SBITA
assets
Net capital assets
Long-Term Debt
Balance
July I. 20ll
s 5,324,040
2,213,049
19.937,881
27.474,970
584,553.473
(306.479,516)
278.073,957
226,050
57.470
283,520
(5.626)
<20.4421
(26,068)
257.452
$305 806.J.72
Ac!dilions
s 52.200
360,039
7,825.125
8.237.361
20,519,632
(17.872 789
2.646 843
(S,626)
£27,278)
132.9Q4l
132.9041
66.3 13
(52, 189)
14 115
_s LQ.§65 418
R~tircm~ms!
Transfers
s
( 1,156,981)
_ill,073,8$4)
(20.230,!!§5)
( 1,230, 730)
1.012.,683
(218.047)
Balane~
June 30. 2023
s 5,376.240
_
1,416,107
_,.~.,,.689.ln
IS.48 1.469
603.842.375
023.339,6221
280.S02, 753
226,050
57.470
283.520
( 11,252)
(47.720)
(58,972)
_ _ .,..Z.4,.ill
66,313
(52.1 89)
The County has issued general obligation bonds on behal f of the Department. The
Department is responsible for the payment ofthe deb1 service on these bonds, but the County
remains liable because they are general obligations ofthe County. The Department has
recorded a liability for these general obligation bonds, which amounted to SI 7 ,871,880 at June
30. 2023.
- l04
14.115
COUNTY OF HAWAJ'I
Notes to the Basic Financial Statements
June 30, 2023
General obligation bonds payable issued on behalf of the Department and other long-term debt
at June 30, 2023 are comprised of the following:
Public improvement bonds:
2008 Series A at 4.125%, due through 2043 s 110,630
Publ ic improvement refunding bonds:
2016 Series Bat 3.0% to 5.0-/o, due through 2026 6, l 52.500
2016 Series Eat 2.0% to 5.0%, due through 2029 4,728.750
2020 Series C & D at 5.0%, due through 2029 2,775,000
USDA Bond #R-1 at 2.0%, due through 2057 4,105,000
Revolving fund loans:
State revolving fund loans, interest up to 1.0%,
due through 2042 55.737.039
Total long-tenn debt 73,608,919
Add: Unamortized premium 1.096.509
Total $.74.705.428
At June 30, 2023, future principal and interest payments for long-term debt are scheduled as
follows:
Fiscal year ending June 30: Pri ncipal Interest Total
2024 $ 6,040,651 $ I ,453,472 $ 7,494. I 23
2025 6,286,270 1,276,731 7,563,001
2026 6,443.114 1, 104,850 7,547,964
2027 6,600,693 927.4 12 7,528.105
2028 4,832,671 784,456 5,61 7.127
2029-2033 20,774,520 2.626.721 23,401 ,241
2034 -2038 15.2 11.725 1,253,303 16,465,028
2039 -2043 5,347,952 410,895 5,758,847
2044. 2048 675,024 180,666 855,690
2049-2053 745 ,281 I I 0.409 855,690
2054 -2057 651.017 32.853 683.870
Total W.,60Ul8 SJ.,Q..W.768 18J 770lli
• 105 •
COUNTY OF HAWAl' I
Notes to the Basic Financial Statements
June 30, 2023
The following is a summary ofchanges in long-tenn debt during the fiscal year ended June 30,
2023:
Balance Balance Due Within
Julx I, ~222 Adl!iliSlDi '2£~ttaS~ Ju!JS lQ. Z!lill On~ Yt!C
Seate revolving fund loans
Public improvement
bonds
Add: unamortized
premium
$ 53,580,508
20,139.155
l .l~2.H2
$ 5,528.734 $ (3.372.203)
(2.267.275)
1262.1§2}
$ 55,737.039
17,871,881
1.Q!l§.~!!B
s 3.642.227
2,384,920
26fui§~i
Total ~]2.Q,U SJ~,I05 Qi).jl ~.4l!l S 74 W,418 $ 6.290.®2
Contributions In Aid ofConstruction
The Department recognized SI 0.573.824 ofcontributions in aid ofconstruction for the fiscal
ye.ar ended June 30, 2023.
Other Long-Term Liabilities
The following is a summary ofoiher long-tenn obligations transactions for the fiscal year
ended June 30, 2023:
Balance Deductions/ Balance Due Within
Julx I. '!!22 Addi!il!Di eixw,DIS J~a; l!I. 2221 Qn, Ycuc
Customers' deposits $ 16.438,298 $ 613,326 $(1 2,380,566) $ 4,671.058 $ 200,887
Accrued vacation 1,954,476 94,707 (125,253) 1,923,930 686,835
Accrued workers'
compensation 300,000 300.000 189.000
Leases payable 259,086 (31,569) 227,517 14.1 28
SBITA payable 7,64Q CZ 21~l li.21Q .l."6
Total UWU@ L 7.J.S.m ~50..J.Ql) s 7 122,4.85 s I Cl93_.976
Commitments and Contlngeat Liabllities
Claims andjudgmtnts -The Department maintains property, auto liability. and general
liability insurance policies. TI1e Department remains self-insured for workers' compensation
and other perils. The liability at June 30, 2023 for workers' compensation claims of $300,000
was estimated based on a combination ofcase·by-casc review and the application of historical
experience to outstanding claims.
Construction contracts -The Deparrment is obligated under construction contracts for the
utility plant and other projects. Such commitments approximated $14,002,864 at
June 30, 2023.
. l06.
COUNTY OF HA WAl'l
Not~ lo the Bask Financial Statements
June 30, 2023
Pension Plan
Pension liabilities, pension expense, and deferred outjTo>Vs ofresources onlf lftferrelf
inflows ofresources related to pen.rloms -At June 30. 2023, the Department reported a
liability ofSJ0,899,325 for its proportionate share ofthe net pension liability. 1'he net pension
liabi lity was measured as ofJune 30, 2022, and the total pension liability used to calculate the
net pension liability was detennined by an actuarial valuation as of that date. The
Department's proportion ofthe net pension liability was based on a projection of the employer
contributions to the pension plan relative to projected contributions ofall participating
employers.
At June JO, 2022, the Department's proportion was .24%, which is the same as its proportion
measured as ofJune 30. 2021.
For the year ended June 30, 2023. the Department recognized pension expense of$2,624,255.
At June 30, 2023, the Department reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows of
ofResourw Rcsou~~
Differences between expected and actual experience s 554,494 s (447,321)
et difference between projected and actual earnings
on pension plan investments (l.337.368)
Changes in assumptions 45,338 (391,928)
Changes in proportion and differences between employer
contributions and proportionate share ofcontributions 797,771 (753, l 76)
Department contributions subsequent to the measurement date 2.~J~.ill
Total U,93J~W $-il.919~
The $2,535,659 reported as deferred outflows of resources re lated to the Department's
contributions to the pension plan subsequent to the measurement date will be recognized as a
reduction ofthe net pension liability in the fiscal year ended June 30, 2024.
-107
COUNTY OF HAWAJ' I
Notes lo the Basic Financial Statements
June 30. 2023
Other amounts reponed as deferred outflows ofresources and deferred inflows ofresources
related to pensions will be recognized in pension expense as follows:
Net Deferred
Outflows
(Inflows) of
Fiscal Year Ending June 30, Resource~
2024 $ (484,622)
2025 (551.221)
2026 (908,685)
2027 426,429)
2028 ( 14.091>
$ (J 532.J90)
Sensitivity ofthe Department's proportionate share ofthe net pension liability to changes in
the dl.rcount rate -llic following presents the Department's proportionate share ofthe net
pension liability calculated using the discount rate of7.00%, as well as what its proportionate
share ofthe net pension liabiliiy would be if it were calculated using a discount rate that is l
perccntage-point lower (6.00%) or I-percentage-point higher (8.000/o) than the current rate:
1% Decrease Current Discount 1% Increase
( 6. 00"/o) Rate ( 7 .00"/o) (8.00%)
Department's proportionate
share ofthe net pension liability
Pension planfiduciary net position -Detailed information about the pension plan's fiduciary
net position is available in the separately issued ERS Annual Comprehensive Financial Report
(ACFR) that includes financial statements and required supplementary information.
Payablesto the pension plan -At June 30. 2023, the annual amount payable to the ERS
totaled $679,631, which represents the employer contribution for the month ofJune 2023 and
an accrual for excess pension costs attributed to the fiscal year, as required by HRS.
Post-Retiremenl Beaefil5 Olher than Pensions (OPEB)
Net OPEB fiabiliry, OPEJJ expense, and deferrt!d outjTows ofrt!Sourc:es anddefe"edlnj1ows
ofresources refaud to OPEB -At June 30, 2023, rhe Department reported a net OPEB
liabiliiy ofS7,812,470. The net OPEB liability was measured as ofJuly I, 2022, and the total
OPEB liability used to calculate the net OPEB liability was detennined by an actuarial
valuation as ofthat date. For the year ended June 30, 2023, the Oepanment recognized OPEB
expense of$107,757.
-108
COUNTY OF HAWAI· I
Notes to the Bask FinanciJll Statements
June 30, 2023
At June 30. 2023 the Department reported deferred outflows ofresources and deferred inflows
of resources related to pensions from the following sources:
Deferred Deferred
Outflows Inflows of
ofResources Resources
Difference between expected and actual experience S •• $ ( 4,560, I 34)
Changes ofassumptions 159,914 (l,128,967)
Net difference between projected and actual earnings on OPES
plan investments (82, 79n
Employer contributions subsequent to the measurement date 1.961.Q()Q
Total $. 2,J2Q.2H S IS 721.8,98)
$1,961 ,000 reported as deferred outflows of resources related to the Department's
contributions to the OPES plan subsequent to the measurement date will be recognized as a
reduction ofthe net OPES liability in the fi scal year ended June 30. 2024.
Other amounts reported as deferred outflows ofresources and deferred inflows ofresources
related to pensions will be recognized in pension expense as follows:
Net Deferm!
(Inflows) of
Eiscal Year Ending June 30. Resources
2024 $ (1 ,308,451)
2025 (1 ,361,81 7)
2026 (1,483,671 )
2027 (503,762)
2028 (693.327)
Thereafter (260.956)
S IS 61! 9~
. 109.
COUNTY OF HAWAl'I
Notes to the Basic Financial Statements
June 30, 2023
Changes i.n the Net OPEB Liability:
The following schedule presents the changes in the net OPEB liability for the fiscal year
ending June 30, 2023:
Increase (Decrease)
TotalOPEB Plan Fiduciary NetOPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at June 30, 2022 $ lZ, 105,421 i 2§.~~J.§l~ i IQ,4~1.186
Changes for the fiscal year:
Service cost 754.223 754,223
Interest on the total OPES liability 2.581.297 2,58 1,297
Employer contributions 2.148.000 (2.148,000)
Net investment income (518,406) 51 8,406
Benefit payments (1.213,715) (1,213,715)
Administrative expense (2,283) 2,283
Di fference between expected
and actual experience (3, 11 2,836) (3.112,836)
Change ofassumptions ( 1,213,900) ( 1.213,900)
Other ~Q. 189 (20,789}
Net changes
Balance at June 30. 2023
i t (~.204,2J ll
H ,20.Qg90
$ 4J4J~
llZJtU.1!20
i
L
!2,639,l 1§}
7....._812,,41]
Sensitivity oftire fie/ OPEB liability to chaflges In the discouflt rate l'he following presents
the net OPEB liability ofthe Department, as well as what the Department's net OPEB liability
would be if it were calculated using a discount rate that is I-percentage-point lower (6.00%) or
I-percentage-point higher (8.00%) than the current discount rate:
1% Decrease Current Discount 1% Increase
(6.00"/o) Rate (7.00%) (8.00-/o)
Department's net OPEB liability Lll..882.uB s.. 7 8 12._ill LJ.l~
Sensitivity ofthe net OPEB liability to cha,,ges in the healthcau cost trmd rates -The
following presents the net OPEB liability ofthe Department, as well as what the Department's
net OPEB liability would be ifit were calculated using a healthcare cost trend rate that is I
percentage-point lower or I-percentage-point higher than the current healthcare cost trend
rate:
Current
Healthcare Cost
1% Decrease Trend Rate 1% Increase
Department's net OPEB liability s 3.~0J.60l s 7 812,lli s. 13 26~452
-11 0 •
COUNTY OF HAWAI'I
Notes to the Bask Financial Statements
June 30. 2023
The EUTF issues a publicly available financial report that includes financial statements and
required supplementary information, which is available on-line at their web-site
www.eutf.hawaii.gov or by contacting them at P.O. Box 2121. Honolulu, HI 96805-2121.
Prior Period Adjustment
Net position as ofJuly I, 2022 has been restated as a resull ofa S7.7 I J ,362 increase primarily
due to errors related to expired water commitment deposits that were misclassified as a
liability and it should have been recognized as revenue prior to June 30. 2022. Adj ustments
were made to decrease water commitment deposit liability by $8,104,400 with a
corresponding increase in earned surplus equity. Other adjustments include recording of
SBITA a.ssets totaling $43.637 that were in place prior to June JO. 2022 with a corresponding
increase in earned surplus equity, an adjustment of$18.915 for prior year accumulated
amortization ofSBITA asset due to GASB 96 implementation during the FY23 with a
corresponding decrease in earned surplus equity, and adjustments to Preliminary Survey &
Investigations with a corresponding decrease to earned surplus equily totaling $415. 760 due to
cancellation ofconstruction projects that should have been recognized prior to June JO. 2022.
-11 I
COUNTY OF HAWAll
Required Su1>plementary Information
June 30, 2023
Schedule ofChanges in the Net OPEB Liability and Related Ratios
Last JO Fiscal Years*
2023
Count)! Oenartment
Total OPEB Liability
Service Cost $ 13,200.983 $ 754,223
Interest on the total OPEB liability 41,857,781 2,581,297
Benefit payments (19,891,212) (1,213,715)
Difference between expected and actual
experience (50,903,860) (3, 112,836)
Changes in assumptions ( 14,475,674} (1,213,900}
Net change in total OPEB liability (30,211,982) (2,204,931)
Total OPEB liability -Beginning 60!.~!J.~IJ JZ,IQ5,421
Total OPEB liability-Ending $ 571,101,431 $ 34,900,490
Plan fiduciary net position
Contributions -employer $ 38,439,395 $ 2,148,000
Net investment income (5,4 10,114) (518,406)
Benefit payments (19,891,212) ( 1,213 ,715)
Administrative expense (24, 126) (2,283)
Other l.21Q 2Q,789
Net change in plan fiduciary net position 13,115,853 434,385
Plan fiduciary net position -Beginning 289,809, 720 ~6.!i~J.§~
Plan fiduciary net position -Ending $ 302,925,573 $ 27.088.020
Net OPES liability $ 268, 175,858 $ 7,812,470
Plan fiduciary net position as a percentage of
the total OPEB liability 53.0% 77.6%
Covered-employee payroll $ 195,866,428 $ 10,326,292
Net OPES liability as a percentage of
Covered-employee payroll 136.9% 75.7%
-112 •
COUNTY OF HAWAll
Required Supplementary Information
June 30, 2023
Total OPES Liabilicy
Service Cost
Interest on the total OPEB liability
Benefit payments
Difference between expected and actual
experience
Net change in total OPEB liability
Total OPE13 liability -Beginning
Tocal OPEB liability . Ending
Plan fiduciary net position
Contributions ·employer
Net investment income
Benefit payments
Administrative expense
Other
Net change in plan fiduciary net position
Plan fiduciary net position · Beginning
Plan fiducia ry net position · Ending
Net OPEB liability
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered-employee payroll
Net OPEB liability as a percentage of
Covered-employee payroll
2022
County Dcparlmcnt
$ 12,764,228 $ 762,769
40,832,661 2,456,079
( 19,280,575) ( 1,063,30 I)
{19,584,810} {287,233)
14,731 ,504 1,868,314
58 6,5 !!..L.2Q.2 ~~.2n.IQ7
$ 601,313,413 $ 37, I05,421
$ 38,334,627 $ 1,210,523
57,339,33 1 5,666,092
(19,280,575) ( 1,063,30 I)
(29,421) (2,922)
(IZQ.16f ) (~Q)
76, 193,500 5,8 10,342
_ll~.616,220 20,843,293
$ 289,809, 720 $ 26,653,635
$ 311,503,693 $10,451,786
48.2% 71.8%
$ 197,9 78,022 $ 10,713,826
157.3% 97.6%
• 113 •
COUNTY OF HA WAii
Required Supplementary Information
June 30, 2023
Total OPEB Liability
Service Cost
Interest on the total OPEB liability
Benefit payments
Difference between expected and actual
experience
Change in assumpt ions
Net change in total OPEB liability
Total OPEB liability -Beginning
Total OPEB liability-Ending
Plan fiduciary net position
Contributions -employer
Net investment income
Benefit payments
Administrative expense
Other
Net change in plan fiduciary net position
Plan fiduciary net position -Beginning
Plan fiduciary net position -Ending
Net OPEB liability
Plan fiduciary net position as a percentage of
the total OPES liability
Covered-employee payroll
Net OPEB liability as a percentage of
Covered-employee payroll
2021
County
$ 13, 182,SS I
4 1,4 12,243
(19,277, 123)
(39,988,932)
(3,397,584)
(8,068,845)
594,650,754
$ 586,581,909
$ 4 1,604,474
3,806,539
( 19,277,123)
(29,192)
121.0IZ
26,231,715
-1.&Z.~§!l.~Q~
$ 213,616,220
$ 3 72, 965,689
36.4%
$ 189,053,873
197.4%
Department
$ 773,607
2,483,573
( 1,036,438)
(2,403,748)
( 190,921}
(373,927)
35,611,034
$ 35,237,107
$1,977,000
376,721
( 1,036,438)
(3,013)
G~.221l
1,312,006
12.~~ 1.~~z
$ 20,843,293
$ 14,393,814
59.2%
$ 10,266,331
140.2%
-114
COUNTY OF HAW All
Required Supplementary Information
June 30, 2023
2020
County De(!artmenl
Tomi OPEB Liability
Service Cost $ 12,402,599 $ 746,672
Interest on the total OPEB liability 38,381,475 2,349,959
Benefit payments ( 18,65 I, 726) (1 ,012,084)
Difference between expected and actual
experience 9,224,217 (314,598)
Change in assumptions 1,~6.f,836 137,542
Net change in total OPEB liability 43,219,40 I 1,907,49 1
Total OPEB liability -Beginning 551,4~1,J~~ n.ZQ~.~4J
Tora! OPEB liability -Ending $ 594,650, 754 $ 35,611,034
Plan fiduciary net position
Conrriburions -employer $ 39,770,000 $1,990,000
Net investment income 7,1 87,610 764,696
Benefil paymenrs ( 18.651,726) ( 1,012,084)
Ad111inis1ra1ive expense (49,623) (5,493)
Other 8,531 ,70 I 522,371
Net change in plan fiduciary net position 36,787,962 2,259,490
Plan fiduciary nel position -Beginning I~Q.~2§.24~ !Z,271,797
Plan fiduciary ner posirion -Ending $ 187,384,505 $ 19,531 ,287
Net OPEB liability $ 407,266,249 $ 16,079,747
Plan fiduciary net position as a percentage of
the 101al OPEB liability 31.5% 54.9%
Covered-employee payroll $ 185,575,775 $ 10,264,425
Net OPEB liability as a percentage of
Covered-employee payroll 219.5% 156.7%
-115
COUNTY OF HAWAll
Required Supplementary Information
June 30, 2023
2019
Coµ nly Dcnartmeni
Total OPEB Liability
Service Cost $ 12.056,311 $ 698,126
Interest on the total OPEB liability 36,036,284 2,264,524
Benefit payments ( 17,998,013} ( l ,O l6,548)
Difference between expected and actual
experience (3,679,099} (1,184,347)
Change in assumptions z.~~12.2~!'i 432,233
Net change in tota l OPEB liability 33,656,439 I, 193,988
Total OPEB liability -Beginning ~1 2,724.21 ~ ~i.~22.~~~
Total OPEB liability -Ending $ 551 ,43 1,353 $ 33,703,543
Plan fiduciary net position
Contributions -employer $ 32,829,013 $1 ,936,548
Net investment income 9,474,156 1, 111 ,306
Benefit payments (17,998,013) (1,016,548)
Administrative expense (29,227} {3,336}
Net change in plan fiduciary net position 24,275,929 2,027.970
Plan fiduciary net position -Beginning 126,320.614 15 ,243.827
Plan fiduciary net position -Ending $ 150,596,543 $ 17,271,797
Net OPEB liability $ 400,834,810 $ 16,431,746
Plan fiduciary net position as a percentage of
the total OPEB liability 27.3% 51.3%
Covered-employee payroll $ 178,889,344 $ 10,212,595
Net OPEB liability as a percentage of
Covered-em ployce payroll 224. 1% 160.9%
-116
COUNTY OF HAW All
Required Supplementary Information
June 30, 2023
2018
Coun!y De12artmen1
Total OPEB Liability
Service Cost $ 11,757,502 $ 687,414
Interest on the tolal OPEB liability 34,046,407 2, 135,490
Benefit payments ( t 7,Q~4.2BZl (9~J.,§~)
Nel change in total OPEB liability 28,748,922 l,869,616
Total OPEB liability -Beginning 489,025,992 30,639,939
Total OPEB liability -Ending $ 517,774,914 $ 32,509,555
Plan fiduciary net position
Contributions -employer $ 28,549,987 $1,867,788
Nel investment income 10.380,705 l,245,946
Benefit payments ( 17,054,987) (953,288)
Administrative expense (23,228) (2,782)
01her ~66,4~7 l~.~7Q
Net change in plan fiduciary net position 22.118,934 2.174,034
Plan fiduciary net position -Beginning 104 ,201 ,680 13,069,793
Plan fiduciary net position -Ending $ 126,320,614 $ 15,243,827
Net OPEB liability $ 391,454,300 $ 17,265,728
Plan fiduciary net position as a percentage of
the total OPEB liability 24.4% 46.9%
Covered-employee payroll s 172,678,405 $ 9,791,132
Net OPEB liability as a percentage of
Covered-employee payroll 226.70% 176.34%
• This schedule is intended to present information for 10 years. as ofthe measurement date of!he
collective net OPEB liabilily for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
See accompanying notes to required supplementary information
• 117
COUNTY OF HAWAII
Required Supplementa ry Information
June 30, 2023
Schedule orContributions (OPEB) Last I 0 Fiscal Years
County:
Contributions Contributions
in Relation to as a %age
Actuarially the Actuarially Contribution Covered-ofCovered-
Fiscal Year Detennined Determined Deficiency Employee Employee
Ended Contribution Contribution {Excess) Payroll Payroll
June 30, 2023 $ 42,910,000 $ 42,910,000 $ .. $ 207,585,949 20.7%
June 30, 2022 $ 45, 147,000 $ 38,439,395 $ 6,707,605 $ 195,866,428 19.6%
June 30, 2021 $ 42,917,000 $ 38,181,347 $ 4,735,653 $ 197,978,022 19.3%
June 30, 2020 $ 41,464,000 $ 41 ,604,4 74 $ (140,474) $ 189,053,873 22.0%
June 30, 2019 $ 39,770,000 $ 39,770,000 $ ·$ 185,575,775 21.4%
June 30, 2018 $ 37,748,000 $ 32,829,013 $ 4,918,987 $ 178,889,344 21.1%
June 30. 2017 $ 36,472.000 $ 28,549,987 $ 7,922,013 $ 172,678,405 21.1%
June 30. 2016 $ 33,614,000 $ 22,747,340 $ I 0,866,660 $ 159,744,324 14.2%
June 30, 20 I5 $ 32,478,000 $ 18,657,000 $ 13 ,821,000 $ 152,490,296 12.2%
June 30, 2014 $ 30,526,000 $ 17,453,000 $ 13,073,000 $ 139,423 ,481 12.5%
Department:
Contributions Contributions
in Relation to as a %age
Actuarially the Actuarially Contribution l'overttt/.. ofCovered-
Fiscal Year Determined Detenn ined Deficiency Employee Employee
Ended Contribution Contribution {Excess) P""t(Oll Payroll
June 30, 2023 $ 1,961,000 $ 1,961,000 $ $11 ,390,143 17.2%
June 30, 2022 $ 2,148,000 $ 2,148,000 $ $11 ,020,814 19.5%
June 30, 2021 $ 2,046,000 $ 1,210,523 $ 835,477 $10,713,826 11.3%
June 30, 2020 $ 1,977,000 $ 1,977,000 $ $10,266,331 19.3%
June 30, 2019 $ 1,990,000 $ 1,990,000 $ $10,264,425 19.4%
June 30, 2018 $ 1,933,000 $ 1,936,548 ($ 3,548) $10,2 12,595 19.0%
June 30, 2017 $ 1,867,000 $ 1,867,788 ($ 788) $ 9,791,132 19.1 %
June 30, 20 16 $ 1,914,000 $ 1,913,204 $ 796 $ 9,464,649 20.2%
June 30, 2015 $ 1,850,000 $ 1,848,389 $ 1,611 $ 9,426.509 19.6%
June 30, 2014 $ 1,899,000 $ 1,900,758 ($ 1,758) $ 8,635,402 22,0%
See accompanying notes to required supplementary information
• 118 •
COUNTY OF HAWAII
Required Su pplementary Information
June 30, 2023
Note -Significant Methods and Assumptions
Beginning July I, 2017, an actuarial valuation of the County's and Dcpanment's liability
associated with other postemployment benefits other ihan pension provided through the EUTF is
performed as ofJuly I ofeach year.
The following summarizes the significant methods and assumptions used to determine the
actuarially detennined contribution for the fiscal year ended June 30, 2023:
Actuarial valuation date Developed in the July I, 2022 valuation
Actuarial cost method Entry Age Normal
Amortization method Level percent, closed
Equivalent single amortization period 16.4 and 14.9 for the County and Depanment,
respectively, as of June 30, 2023
Asset valuation method 4-year smoothed market
lnOation rate 2.50%
Investment rate of return 7.00%
Payroll growth 3.00%
Salary increases 3.75% to 6.75% including inOation
Healthcare cost trend rates
PPO Initial mies of'7.50%; declining to a rate of4.70%
after 13 years
HMO Initial rate of7.50%; declining to a rate of4.70%
after 13 years
Part B Initial rate of 5.00%; declining to a rate of4.70%
after I 0 years
Dental Initial rate of5.00% for first year; followed by
4.00% for all future years
Vision Initial rate of0.00% for first year; followed by
2.50% for all future years
Life Insurance 0.00%
-l l 9
COUNTY OF HAWAii
Required Supplementary Information
June 30, 2023
Demographic assumptions
Mortality
Participation rates
Based on the experience study covering the five
year period ending June 30, 2018 conducted for
the Hawaii Employees' Retirement System
System-specific mortality tables utilizing scale
BB to project generational mortality
improvement
98% healthcare participation assumption for
retirees that receive I00% of the Base Monthly
Compensation. Healthcare participation rates of
25%, 65%, and 90% for retirees that receive 0%,
50%, or 75% ofthe base monthly contribution,
respectively. 100% for life insurance and 98% for
Medicare Part B.
There were no other factors that significantly affected trends in the amounts reported in the
schedule of changes in the net OPES liability and related ratios or the schedule ofcontributions
(OPED).
Changes of Assumptions:
• During the measurement period, the demographic assumptions were updated to rencct
the 2022 ERS Actuarial Experience Study.
• Additionally, short-term healthcare trend assumptions were updated.
" 120"
COUNTY OF HAWAll
Required Supplementary Information
June 30, 2023
Schedule ofthe County's and Department's Proportionate Shure
ofthe Net Pension Liability (ERS)
Last 10 Fiscal Years
County:
Proportionate
Share of the Plan
County's County's Net Pension Fiduciary Net
Proponion of Proponionate Liability as a Position as a
the Net Share ofthe. County's %age of %age of the
Measurement Pension Net Pension Covered Covered Total Pension
Period Ended Liabilit:t (%) Liability{$} Pa:z:roll Pa)'.rOll Liabilil:t
June 30, 2022 4.5% $584,219,290 $183,409,868 318.5% 62 .8%
June 30, 202 1 4.6% $565,147,246 $186,778,076 302.6% 64.3%
June 30, 2020 4.5% $696,251,655 $180,285,326 386.2% 53.2%
June 30. 2019 4.7% $668,213, 164 $172.197, IOI 388. 1% 54.9%
June 30, 201 8 4.8% $635,693,50 I $168,484.880 377.3% 55.5%
June 30, 2017 4.7% $609.904, 199 $163,626,447 372.7% 54.8%
June 30, 2016 4.6% $618, 129,088 $156,556,514 394.8% 51.2%
June 30, 20 IS 4.4% $382,070,813 $149,760,317 255. 1% 62.4%
June 30, 2014 4.0% $322,626,262 $137,669,418 234.3% 63.9%
June JO, 2013 4.2% $377,065,856 $129,153,763 292.0% 58.0%
Department:
Proponionate
Share of the Plan
Depanment 's Department's Net Pension Fiduciary Net
Proponion of Proportionate Liability as a Position as a
the Net Share of the Department's o/oage of %age of the
Measurement Pension Net Pension Covered Covered Total Pension
Period Ended Liabilit:z: (%) Liabilit~ {$} Pa:troll Pa:troll Liabilit>:
June 30, 2022 0.2% $ 30,899,325 $ I 0,450,084 295.7% 62.8%
June 30, 2021 0.2% $ 29,017,165 $11,016,038 263.4% 64.3%
June 30, 2020 0.2% $ 35,290,257 $10.439,473 338.0% 53.2%
June 30, 2019 0.2% $ 32,029,248 $10,318,136 310.4% 54.9%
June 30, 2018 0.3% $ 33,522,053 $ 9,742,400 344.1% 55.5%
June 30, 20 l 7 0.2% $ 28,365,453 $ 9,358,187 303.1% 54.8%
June 30, 20 l 6 0.2% $ 29,247,607 $ 9,046,930 323.3% 51.2%
June 30, 2015 0.2% $ 18,940,065 $ 9,012,196 210.2% 62.4%
June 30, 2014 0.3% $ 20,526,993 $ 8,272,307 248.1 % 63.9%
June 30, 2013 0.2% $ 18,469,400 $ 7,640,477 24 1.7% 58.0%
See accompanying notes to required supplememary information
-121
COUNTY OF HAWAll
ll.cquircd Supplementary (nformalion
June 30, 2023
Sched ule or lhe Employer Pension Conlrlbulioos (ERS)
Last Ten Fiscal Years
County:
Actual
County Contributions
Sta1utorily Contributions Contribution as a %age of
fiscal Y car Required Recognized Deficiency Counly's Covered
Ended Contribution b;i the Plan {Excess} Covered Pa;i•·oll Pa~roll
June 30, 2023 $ 63,900,644 $ 63,900,644 $ $ 192,71 1.324 33.2%
June 30, 2022 $ 61.913,089 $ 61,913,089 $ $ I 83,409,868 33.8%
June 30, 2021 $ 63,953,781 $ 63,953,781 $ $ 186,778,076 34.2%
June 30, 2020 $ 52,778,035 $ 52,778,035 $ $ 180,285,326 29.3%
June 30. 2019 $ 44,853,953 $ 44,853,953 $ $ 172,197,101 26.0%
June 30. 2018 $ 41,562,933 $ 41 ,562,933 $ $ 168,484,880 24.7%
June 30, 201 7 $ 36, 15 7,981 $ 36, 157,981 $ $ 163,626,44 7 22.1 %
June 30. 2016 $ 34 ,013,00 I $ 34,013,001 $ $ I 56,556.S 14 21.7%
June 30, 20 I 5 $ 31,456,148 $ 31,456, 148 $ $ 149,760,31 7 21.0%
June 30, 2014 $ 26.503,830 $ 26,503.830 $ $ 137,669,418 19.3%
Dcpartmcnl:
Actual
Coumy Co111ributions
Stalutorily Contributions Con1ribution as a %age of
Fiscal Year Required Recognized Deficiency County's Covered
Ended Contribution b~ the Plan (Excess} Covered Pa~roll Pa~roll
June 30, 2023 $ 2,535,659 $ 2,535,659 $ $ I 0,802,083 23.5%
June 30, 2022 $ 2,477,404 $ 2,477,404 $ $ I0,450,084 23.7%
June 30. 2021 $ 2.579,63 I $ 2,579,631 $ $ 11 ,016,038 23.4%
June 30, 2020 $ 2.258,593 $ 2,258,593 $ $ 10,439,473 21.6%
June 30, 2019 $ 1,950,358 $ 1,950,358 $ $ 10,318,136 18.9%
June 30, 20 I 8 $ 1,757,461 $ 1,757,461 $ $ 9,742,400 18.0%
June 30, 2017 $ 1,603,278 $ 1,603,278 $ $ 9,358,187 17.1 %
June 30, 2016 $ 1.553,128 $ 1,553,128 $ $ 9,046,930 17.2%
June 30, 2015 $ 1,520,994 $ 1,520,994 $ $ 9,012,196 16.9%
June 30, 201 4 $ 1,664,580 $ 1,664,580 $ $ 8,272.307 20.1%
See accompanying notes to required supplementary infonnation
-122
COUNTY OF HAWAll
Required Supplementary Information
June 30, 2023
Note - Cbangl'S of Assumptions
The following changes were made to the actuarial assumptions as ofJune 30, 2022, based on the
2021 Experience Study:
• There was a slight increase in the administrative expenses assumption from 0.35% 10
0.40%.
• The general produciivity component ofthe general wage in Oation assumption for General
Employees and Teachers decreased from 1.0-0% to 0.50%, that now yields a nominal
assumption ofJ.00%. There was no change to the assumption for Police and rirefightcrs
employees.
• The assumed salary increase schedules increased for all employees.
• Pre-retirement mortality rates increased for Police and Firefighters Employees and the
retiree mortality is updated to the 2022 Public Retirees of Hawaii mortality tables.
-123
COUNTY OF HAWAii
Required Supplementary Info rmation
June 30, 2023
Schedule of C hanges In T otal Pension Liability (Bandsmen Pension)
Last Ten Fiscal Years•
Measurement year
ending
June 30,
Total Pension
Liability
Service Cost $ 6,747 $ 11,943 $ 145,450 $ 7,577 $ 7,392
Interest on the Total
Pension Liability 30,680 21,813 28,152 29,250 38,149
Di ffcrenc.es between
expected and actual
experience (7,564) (68,212) (70,480) (89,947)
Assumption Changes (31,700) (230,048) 58,659 87,065 (44,293)
Oenefit Payments _fil..ill.) !n.ZIJl (~4.722} (~2.21~) !H.~J2l
Net C hange in T otal
Pension Lia bility (34,022) (302,2 l 7) 116,982 74,280 ( 136,231)
Total Pension
Liability -Beginning a~2.z~2 I, I4J,QQ~ l ,Q22,Qi1 -2.ll..Zil ...Lll..$]..27.l
Total Pension
Llability -Ending L 806 1M $ &4018.6 ll.ill.Oill $1.0l6.Q2l $ 2..il.14 1
Covered Payroll $ 28,813 $ 22,729 $ 24 ,076 $ 26.349 $ 26,349
Total Pension Liability
as a Percentage of
Covered Employee
Payroll 2,800.0% 3,699.2% 4,747.5% 3,894.0% 3,612.1%
-124
COUNTY OF HAW AII
Required Supplementary Information
June 30, 2023
Measuremenl year
ending
June 30, ~ f.Q.11
Total Pension
Liability
Service Cost $ 16,416
Interest on the To1al
Pension Liability 36,289
Differences be1ween
expected and actual
experience
Assumption Changes ( 113,807)
Benefil Payments (~8.8Q8} ! ~J.HZl
Net Change in Total
Pension Liability (58,808) (114,449)
Total Pension
Liability -Deglnning l,146,78Q L2g l,, , 2
Total Pension
Uability -Ending ~ L.!ill~272 U l ~li 2811
Covered Payroll $ 49,505 $ 49,505
Total Pension Liability
as a Percentage of
Covered Employee
Payroll 2,197.7% 2,316.5%
•This schedule is intended to present information for 10 years, as ofthe measurement date of the
total pension liability for each respective fiscal year. Additional years will be built prospectively as
information becomes avai lable.
See accompanying no1es 10 required supplementary infonnation
. 125.
This page intentionally left blank
-126
NONMAJOR GOVERNMENT AL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND -Used to accoun1 for lhe costs of main1aining 1he Coun1y's highways and stree1s.
Financing is provided primarily by fuel. motor vehicle weigh1 and public utilily franchise taxes.
SEWER FUND -Used to accounl for costs ofopera1ing 1he County's various sewer systems. Financing is
provided by charges to users for sewer services.
SOLID WASTE FUND -Used to accumulate moneys for lhe operation, maintenance, and administralion of
the Coun1y's solid was1e management, collec1ion and disposal systems. Financing is provided by lipping
fees al the landfills and by disposal permit fees.
CEMETERY FUND-Used to accumulate moneys to guarantee the future maintenance ofC-Oun1y ceme1ery
si1es. Financing is provided from 1he sale of burial lots in Coun1y ceme1eries.
PARKING METER FUND-Used 10 accoun1for1he cos1s of maintaining County on-stree1 and off-stree1
parking areas. Financing is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND -Used 10 accumulate moneys for 1he towing, removal. disposal and recycling
ofabandoned or discarded automobiles and automobile parts. Financing is provided by annual fees
collected with motor vehicle registrations.
BIKEWAY FUND -Used to accumulate moneys for 1he construction of bikeways within 1he County.
Financing is provided by bicycle license fees.
WORKFORCE INVESTMENT ACT FUND -Used to account for employmen1 and training services
provided to economically disadvan1aged adults, dislocated workers and youth. Financing is provided by
federal grants.
GOLF COURSE FUND-Used to account for the cost ofoperating the Hilo Municipal Golf Course.
Funding is provided from green fees and payments from restaurant and pro shop concessionaires.
GEOTHERMAL RELOCATION AND COMMUNITY BENEFITS FUND -Used 10 account for the County's
share ofgeothennal royalties received from the operator ofa geothermal power plant located in 1he County.
The funds are eam1arked for a geothermal relocation program and to benefit the lower Puna area.
BEAUTIFICATION FUND-Used to accumulate moneys for the beau1ification of highways and disposal of
abandoned vehicles within the County. Financing is provided by assessmen1s on vehicle registralions.
GENERAL EXCISE TAX FUND-Used to account for 1he general e•cise tax and use surcharge as
authorized by §46-16.8, 237-8.6, 238-2.6. and 248-2.6(d) Hawaii Revised Sta1utes and related authorized
uses ofsuch funds, including operating or capital costs of public iransportation.
PARK DEDICATION FUND-Used to account for moneys deposited with 1he County by subdividers 10
provide land for parks and playgrounds in subdivisions.
SHORT-TERM VACATION RENTAL ENFORCEMENT FUND -Used 10 accoun1 for cos1 ofenforcing
County's shon-1erm vaca1ion rental enforcement laws. Financing is provided by all l'e<:s and fines collec1ed
in connection wilh the law.
GEOTHERMAL ASSET FUND -Used to account for funds from Puna Geothermal Venture. a Hawai'i
Pannership, to compensate 1hose impac1ed by geothermal energy development activities.
DEBT SERVICE FUND
INTEREST FUND -Used to accumulale moneys for paymen1 of interest on general obligation bonds.
Moneys required to service interest maturities are transferred annually from the General Fund.
BOND REDEMPTION FUND -Used to accumulate moneys for the payment ofgeneral obligalion bonds.
Moneys required to retire the bonds are transferred from 1he General Fund one year in advance of ma1urity.
This page intentionally left blank
-127
COUNTY OF HAWAII
Nonm•jor Co>tr11mr1111 I fHob
COlllbinifta Babnc• si
luM 30. 202J
Special Revenue Funds
1 lighwoy
l'und
Ass•IS
Cosh ond cO!lh •"tulvalcnts s 40.076.63 8
lnvcscmcnts
lmp~rund
R=l,.bi<s·
Due from Oll!<f &0'cmmcnts 2.700.426
Due from Oilier &0'cmn1cnral funds SU.279
Due from Oilier "°"'°'cmmcntal funds
lnick. .... or.,....Witt tOr docl>lful ~..
Other .-
3.282.70S
I otel 4<SCI> s 43.359.343
U1blllllt1, Otftrrtd lnRowi H d Fund l!Jllantts
Liobili1ics:
Accounls puyoblc s 522.433
Accrued payroll 838.014
Due 10 Olhcr aovcmmcntal runds 761.214
Ad\oncc Collcction'l-lntergovcmmcntal
Oth..T 34.223
I Olal llobllitics 2.ISS.884
o.rcrm1 lnllo\\SOfR~
l:navailabk mcnue (no.c 7)
O.fcn-cd inflows "'lated 10 leases
l ol&I dcfaT<d inflo\•s or resources
rund balanm:
Rcsirie1cd for:
Debi scl'\>lcc
lhJhwA)I. Sl,,,.tS ond abandoned vehicles 41.203.459
l,.()\vcr Puno area
Con11nlucd 10:
Sanha1lon
Hiah\\l)S. strtcU and abandoned vehicles
flouslna. rental assi51ance and subsidy
Ccmct<t)'
GolrCourw
'-"""' .......Ilea
Paru end rttttaiion31 projeas
Total fund balances 41.203.459
Tocal liabthti<s. t1crcnec1 inflows
•nd fond bel&ncos ~ 43.359.343
Sc\\'Cr
~nd_
S U.SK0.017
400
281.145
125.62S
S.200
2.631.216
J.OS0.186
s 18.630.603
$ 378.ISS
268.830
807.148
128.293
_1_.n2.fil
2.631.216
2.631.216
14.409,956
_!.4.409.956
s 18.630.603
Solid
Waste
fund
s 12.072.182
250
707.284
l().IJOO
1.129.824
197.998
2.139.406
s 14.211.838
s 4.263.894
474.760
989.528
11.998
466
S.740.646
1.129.824
195.183
1.325.007
7.146.185
7.146..IBS
s 14.211 •. 838
Pill'k1n11 Vehicle
Cemetery Mctc1· Disposal
Fund ._!'.und Fund
-
s 129.466 s J 49.l62 s 9.972.300
~ 129.466 s J 49.J62 $ 9.97>-300
s $ s 129.563
8.550
100.435
238.548
349.362 9.1n.n2
129.466
~466 349.362 9.733.752
s 129.466 s 349.362 s 9.972.300
• 128 .
S~illl Rc•cnuc Funds
Bikc\\·ay
Fund
S 54S.S77
\\'cstfottt
l~•tM &;
~-Ac-IF-:1
s
490.686
S S4S.S77 s
38.993
529.679
529.679
s 36.827
142
s
529.679
36.969 529.679
508.608
508.608
S 545.577 S 529.679
Golf
Course
F'und
$ 408.017
2.000
1.400.676
1,400.676
S l.810.693
s 4.071
S7.380
61.451
1.400.1 83
1.400.183
349.059
349,059
Sl.810.693
~hrm11ltldoe
4COflllm\IMf)
B«nflln f.iftd
S S.125.336
341.021
341.021
S S.466.3S7
$
5.466.JS7
S.466.3S7
$ S.466.357
Beauti·
fication
Fund
s 27 1.8SI
s 271.8S1
s 29
84.914
84.943
186.908
186.908
S 271.851
Gcncrol JlxciS<
1·ax Fund
S S4.716.196
23.779.876
42.S32
23.822.408
S 78.S38.604
s 2.082.884
62.167
5.289
2.915
2.153.255
76.385.349
76.385.349
S 78.538.604
Pnrk
Dedicalloo
Fund
s 62.273
s 62.273
$
62.273
62.273
S 62.273
. 129.
COUNTY OF llA WAii
NonmaJor Govtriimtntal Fund$
Combining Balance S~t
June 30. 2023
(Concluckdl
Short-1erm
Vacation Rental
lnfomrnenl fund
O«>lhermal
Asset Fund
Debi Service fund
Bond
ln1cnos1 Redemption
fund Fund
Total
Non major
Go\•·cmmenl41
Funds
As~U
Cash and cash equivalents
Investments
Imprest fund
Receivables:
Due from other go' emmcnts
$ 1.382.694 S2.419.477 s 7.957.478 $ 6.44 1.855
40.000.000
$157.510.719
40.000.000
2.650
27.959.417
Due from other govemm<ntal fonds 854.736
Due from Other nongovernmental funds 241.665 246.865
Trade.'"" ofollowancc for dwb<fol accounts 3.768.040
Other 14.062 1.992.750
14.062 241.665 34.821.808
Total OSSCIS $ IJ82_694 Sl.419.477 S 7.971.S40 S46.68J.520 S232J3S.l 77
LlablliliH, Otftrrtd lnRows ind hod S.lanoH
Liabilities:
Accounts payabl• $ $ $ $ 7.417.856
Atcru<d payroll 18.41 1 1.728.112
Due 10 other go>emmcntal funds 3.278.349
Advance Collcc:tions-lntergovem~tal 11.998
Other 63.199 185.000 414.10 1
Total liabilities 18.411 63.199 185.000 12.850.416
Deferred lnllows of Resources;
Unavailable revenue (note 7) 3.768.040
Deferred inllows related 10 leases l.S9S.J66
Total deferred inflows of resources S.363.406
Fund balances:
Restricted for:
Debi service 7.908.341 46.498.520 54.406.861
Highv,·118.284.324 -.yi. SlrtclS and 11b-aodoncd ''ehiclcs
Lo"er Puna area 2.419.477 2.419A77
Commit~10:
Sanita11on 21.SS6.141
Hi&hwa)•J. streets and abandoned vehicles 10.083.114
Mousing. rental assistance and subsidy IJ64.283 IJ64.283
Cemotcry 129.466
GolfCourse 349.059
Lo'' er Puna area S.466.3S7
Parks and rec.-eational projects 62.273
Total l\Jnd balances 1.364.283 2.419.477 7.908.34 1 46.498.520 214.121.lSS
Total liabili1~. deferred inOows
and fund balances s 1.382_694 $2.419.477 s 7.971.540 S46.68J.S20 $232.335.177
Sec accompanying indepeo<knt avdi1ors· repon.
• 130.
This page in1en1ionally left blank
-131
COUNTY OF HAW All
Nonmajor Governmental Funds
Combining Sta1emcnt of Revenues. Expenditures-and Changes in Fund Balances
Fort~ Fiscal Year Endtd June JO. 2023
Spcdal Revenue Funds
Hi~h"oy
Fund
$.c\vcr
Fund
Solid
Waste
Fund
Cemetery
Fund
Parking
M!t!tcr
Fund
Vehicle
Disposal
Fund
Rn~mues
Fuel iaxes
Public utility frunchi"' taxes
Licenses and pcnnits
General excise tax surcharge
lntergov<mmcniol
Cha.i:es for services
Investment eamingi; (loss)
Other
Total revenues
s 21.635.977
12.0Sl .548
13.374.199
1.678.428
361.770
159.281
49,261.203
s
49.600
15.083.S94
13.988
IS.147. 182
s
734.444
13.928.979
51.287
14.714.710
$
8.000
8.000
s
11.098
11.098
s
2.579. 184
16.626
11 .801
2.607.61 1
£•ptedltures
Current;
General Government
Public .afcty
Highways and streets
Ho<ahh. education and wclforc
Culture and recreation
Sanitation
Pension and retirement conlributions
Employees' health insurance
Other
Debt service:
Principal
Interest
Total cx~ditures
Excess (deficiency) or revenues
over (under) expenditures
2.715.232
11.783.857
18.141.319
4.SJl.587
1.592.580
6S0.934
1. 141.940
94.016
40.651.465
8.609.738
13.421.706
1.375.282
457.509
1.185.096
250.565
I l.S81
16.701.7)9
(l.SS4.557)
36.206.599
2.399.120
956.884
486.558
1.005.698
28.848
41.083.707
!26.368.997)
2.375
2.375
S.625 11.098
2.229.713
24.823
10.079
2.264.615
342.996
0 01tr Fi••• d •r.So•rces (Uses)
Transfers in 3.446.S5l 28.916.044
Increases in lnses and
other financing agrtcmcnts
Transfers out
Total other financing sources (uses)
844.943
p .574.633)
!6.729.690) 3.446.553
678.092
29.594.136
(302.244)
!)02.244)
Net change in fund balan«s
fund balances at beginning offlscal year
1.880.048
39.J2J.4 I I
1.891 .996
12.51 7.960
3.22S.139
3.921.046
S.625
123.841
11.098
338.26-1
40.7S2
9.693.000
Fund bal8nCC$ OI end offoscal year $ 41.203.459 S 14.409.9S6 S 7.146.18S s 129.466 s 349.362 s 9.733.752
-132
Special Rc\cnue Funds
V.'o&!ar:tt Golf ~I.doc Bauti· P•rk
Blkeway """.,._....,,.,,,. Course &:: C0tn"'-'lll1ty fica.<ion General C.\Ocisc Dcdicution
Fund _ Q!pM1 Anflilltd Fund 8t6C.iht F.-d Fund Ta• Fund Fund
s s s $ s $ $
46.219 214.895
69.S48.494
l.2~.477
984.371
1.201
805.316 28.709
46.219 l.2~.477 984.371 805.316 214.895 69.577.203 1.201
94.512 199.227 26.476.&30
1.256.477
1.207.242 327.240 4.61 7
287.348 3 19.160
126.224 80.211
285
J'>.631
1.457
94.Sl2 1.256.477 1.662.187 327.240 203.844 26.876.201
(48.293) (678..0 16) 478.076 11.051 42.701.002 1.201
790.367
jJJ.477.957}
790.367 !Jl.477.957)
(48.293} 112.351 478.076 I I.OSI 9.223.045 1.201
556.901 236.708 4.988.28I 115.851 67.162.304 61.072
$ 508.608 s $ 349.059 $ 5.466.357 $ 186.908 s 76.385.349 s 62.273
-133
COUNTY OF HAWAii
••••Jor co..r11111a1tal r...i.s
Combinine St11cmm1 ofRC'\cnUH. E><pcndit11res. and Cbanecs in hlld 811.1'>C<.-i
Ford>e Fiscal Y-Ended Jwie 30. 2023
1Concludcd1
Debt ~i«-I und Total
Short·lenn Bond 'onmajor
Vacation Rental Geothermal lntereSt Rcd<mp1ioo 00\cmmental
fn(ur!t'...._ncnt Fund Assel Fund Fund I und Funds
Rt\ll!ftUt'S
Fuel taxes $ s s $ s 21.6JS.977
Public utlll1y ftanchisc 1axes 12.0S1.548
Liccnw• and pcnniis 312.7'0 16.527.247
General t'lcisc Wt 5'1rchatil• 69.548.49-1
lnlcr&O'<mmental 3.71!.949
C'!IM&es for ~ica 30.Jl6.4J8
ln\otl'l<nl <11mhlp lloss) 4l.911 12SJS7 175.469
Oilier 11.$00 50.000 1.139.&82
rcKal ~enues 314.250 9!.911 12S.J57 IS5. I84.0G.I
E•P<•dlcum
Current:
Ocncral Oo•cmment 360.348 3.075.580
Public safcc~ 11.783.857
lllghwnys und streets 44.911.888
I lcalth. education and welfare 1.256.477
Culture and rccre<11ion 1.541.474
Sanllatlon 51.858.018
Pen~ioo and rctimnm1 contributions 98.638 9.0J6.158
1 mplo)ces' hcolth insuran.-e 50.666 3.280.153
Other 2J22.873
Od>ttcnt«:
Pnncrpll 31 . 124.292 H.562.126
lntclfil 16.877.195 --17.013.797
Toial c~ditures SIS.652 16.177.89S 31.124.292 179.6-12.40 1
l•CC$S (defrcicncy) of...-cnues
o•Cf (under) expenditures (191.4,W 98.911 ! 16.752.538, (31.124.2921 !H.458.3971
Other Flllandng Sources (U~)
Tronsli:rs In 17.6%.534 37.713.109 88.562.607
Increases In lct1.~$ ond
other nnancina agreements l.S23.035
Tratt~rcrs out .-141.354.834)
fcMol other financing '""11'CeS(USCS) 17.696.534 21!!.3.109 411.130.808
N<t clwlJe in fund balances (191,402) 98.911 943.996 6.583.817 H.272.411
rund balinccs"' begiMing offiscal )ear l.S5S.68~ 2.J20.566 6.964.JO 39.909.70) 119.8-13.9-14
111nJ l>llilllCts at end offiseal )ear s 1.364.lll $2.419.477 s 7.908.341 $46.491.S:!O s 214.l?IJSS
Xe:KCDfllC*ll)iPltind i 1Mlaxauclilor$'rcport4
• 134
COUNTY OF HAWAII
Highway Fund
Schedule ofRevenues. Expenditures, and Changes in Fund Balance·
Budget and Ac1ual (Budgetaty Basis)
for the Fiscal Year Ended June 30, 2023
Original
Budget
Final
Budget
Revenues:
Taxes:
Fuel taxes
Public utility franchise laxes
Total taxes
Licenses and pennits · mo1or vehicle weighl taxes
lntergovCftlmental
Charges f0< services
Other
s 19,180,522
9,254,000
28.434,522
12.000.000
1,708.256
770.000
155,000
s 19,180,522
9.254,000
28,434,522
12.000,000
1,708,256
770.000
155.000
Total revenues 43.067.778 43,067,778
Expcndilures:
General government ·engineering
Public safety -police traffic enforcement
Public safety • prolective inspection
Public safety ·traffic engineering
Highways and Slrects
Pension and retirement contributions
Employees' health insurance
Other
3,31 1,464
2,066.198
740,700
10.903.369
17.496,223
4,930.335
2.021.966
2.S00.863
3,293,464
2.066, 198
758,700
10.903.369
21.196.223
4,930.335
2.021.966
2,500.863
Total expenditures 43,971.118 47,671,118
Excess (dcf1eicncy) of revenues over (under)
expenditures (903,340) (4,603,340)
Other financing uses -lransfers oul
Transfers out • C<tpilal Project.s Fund (3.500,000) (7,500,000)
Ex~ss (deficiency) of revenues
over (under) expenditures and ocher uses (4.403,340) (12,103.340)
Fund balance at beginning offisca.I year 39,323,411 39.323.411
Fund balance a1 end offiscsal year s 34.920,071 s 27,220.071
Sec accompanying independent ftllditors' repo~.
Actual
(Budgetary
Basis)
$ 21,635,977
12,051.548
33.687.525
13,374,199
1,579.174
659,806
159.281
49,459,985
2,744.242
1,350,322
744.835
9,623.211
19.655.639
4,529,289
1.590,700
645,053
40,883.291
8,576.694
(7,S00,000)
1.076,694
39.323.411
$ 40,400.lOS
Variance
Positive
(Nega1ivc)
$ 2,455.455
2,797.548
5.253.003
1.374,199
( 129.082)
( 110. 194)
4.281
6.392.207
549.222
715,876
13,865
1.280.158
1.540.584
40 1.046
431.266
1.855.810
6.787.827
13.1 80.034
13,180.034
$ 13, 180.034
• 135.
COUNTY OF HA WAll
Schedule or Revenues, Ex~itures, arul Changes in Fund Balance
Budget and Actual (Budgetal)' Basis)
For the Fiseal Year Ended June 30. 2023
Original
Budget
Final
Budget
Revenues:
Intergovernmental
Charges fo r services • sewer recs
Other
s
14,395,303
s 49,600
14.395.303
Total revenues 14.395,303 14,444,903
Expendirures:
Soni1a1ion
Pension and retirement contributions
Employees' health insurance
Other
17.736,614
l,878.233
827,296
1.373.928
17.786.214
1,733.233
121.2%
1,618,928
Total expenditures 21.81 6,071 21,865.671
Deliciency ofrevenues under expenditures (7,420,768) (7,420,768)
Other llnancing sources:
Transfers in • General Fund 3,446.SSJ 3,446.553
Excess (deficiency) orrevcnues and other
sources over (under) expendirures (3,974.21 Sl (3,974.215)
Fund bal311ce at beginning offiscal year 12,Sl7.960 12.Sl7,960
Fund balance a1 end offtscal year s 8,S43,74S s 8.S43.74S
Sec occompanyi"ll indcpcndent auditors' report.
Actual
(Budgetary
Oasis)
Variance
Positiv~
(Negative)
s 41),600
IS,083,594
13.988
15.147,182
s
688,291
13.988
702.279
15,300.081
1.314,551
4SS.90'1
142.202
17,272,749
(2,125.567)
2.,486.133
3S8,676
271.387
1,476.726
4.S92,922
S,295.201
3,446.SSJ
1.320.986
12.S17.960
S.29S,201
s 13.838.946 s S.29S.201
. 136.
COUNTY OF HAWAII
Schedule of Rovenues. Expenditures. and Changes in Fund Bal.-•
Budget and Actual (Bud&ctary Basis)
For the Fiscal Yur Ended June 30. 2023
Actual
Orleinal Final (Budgetary
Budget Budget Basis>
Revenues:
Intergovernmental $ 844,840 s 867,S49 s 61S,9SS
Cllarces for services • tipping fees 13J6S.OOO 13,S65.000 13,928,979
Other Sl,287
Total revenues 14,409,840 14,432.s49 14,656.221
Expenditures:
Sanitllion 38,9Sl.409 38.974.118 36.103.610
Pension and rctimncnt contributions 2.927J23 2.927J23 2.404.278
Employees' health insurance l,166.22S l,142.22S 960.9S7
Othtt 1,047.371 1,071,371 489.631
Total expenditures 44,092.328 44,115.037 39,963,476
DeOclcncy of revenues under expenditures (29.682.488) (29,682,488) (2S.307.25S)
Other financing sources:
Transfers in· General Fund 28,916.044 28.916.044 28,916,044
E•~(deficiency) ofrevenues and othCf
sources over (under) expenditures (766.444 ) (766,444) 3.603.719
Fund balllnce at bcgiMin& offiscal )ear 3.921,046 3.921.G46 3.921.046
Fund balance at end offiscal y-s3,1$4,602 s 3.154.602 $ 7.S29,83S
~·•ccompanying independent audltorl ~port
Variance
Positive
(Negative)
s (191.S94)
363.979
s1.287
223.672
2.86S.S08
S23.04S
181.268
S8 1,740
4,151,S61
4.375.233
4J7S.233
S 4J7S,!3l
• 137.
COUNTY OF HAWAii
Cemetery fund
Schedule orRevenues. Ex~nditurcs. and Changes in Fund Balance
Budget and Ae1ual <Budg<18l)' Basis)
For the Fiscal Vear Ended June 30, 2023
Original
Budget
Final
Budget
Actual
(Budgeraiy
Basis)
Variance
Positive
(Negative)
Revenues ·other • sale ofcemetery plots
Expenditures -heahh. education and welfare
Excess of~venues over ex~nditurcs
Fund balance at beginning offiscal y<ar
Fund balance at <nd offiscal year
s
s
10.000
10.000
123,841
123.841
$ 10.000
10.000
123.841
s 123.841
s
s
8.000
2.500
5.500
123.841
129.341
s
s
(2.000)
7.500
5.500
5.500
See occompan) ing independent audil-0<$' rq>on.
. 138
COUNTY OF HA WAii
Parking Meter F.nd
Schedule of Revenues, Expcndi1urcs, and Changes in Fund Balance ·
Budge1 and Acluat (Budgc1ary Basis)
For 1he Fiscal Year Ended June 30. 202.l
Original
Budget
Final
Budget
Revenues· Charges for services · highways and str
Excess of revenues over eiq>cndilures
fund balance al beginning of fiscal year
fund balance al end offiscal year
'Col5 s
338,264
s 338.264
s
$
338,264
338.264
Ac1ual
(Budgemy
Basis)
s 11,098
I 1,098
338,264
s 349,362
Variance
Positive
(Negative)
s 11.0QS
s IJ.098
. 139.
11.098
COUNTY OF HAWAII
Vebkk Dlspos.I fl'u• d
Sehcdule ofRevenues, Expcndilurcs, and Changes in Fund Balance·
Budget and Actual (Budgetary Basis)
for the Fiscal Year Ended June 30. 2023
Revenues:
Licenses and permits • vehicle disposal fee
Charges fo.-services -towing charges
Miscellaneous
Total revenues
Expenditures:
Sanitation
Pension and retirement contributions
Employees' health insurnn«
Other
Total expenditures
Deficiency of revenues under cxpcndilures
Other financing uses· tr11nsfcrs out ·
Transfers out • Capiml Projects Fund
Transfers out • Serial Bond Rcdomption Fund
T..asfcrs out· Interest Fund
Deficiency of revenues
under expenditures and other uses
Fund balance at beginning offiscal year
Fund balance at end offiscal year
Sec occompan}ing independent auditors' rq><>n.
Original
Budg<1
$ 2,400.000
5,SOO
3,000
2.408,500
3.!Jl,979
62.371
42,204
10.789
3,947,343
(1,538.843)
1),000,000)
(490,000)
(95.000)
(5, 123,843)
9,693.000
s 4,569,157
Final
Budget
$ 2.400.000
s.soo
3,000
2,408,500
3,831.979
62,371
42,204
10,789
3.947.343
( 1,538,843)
(3,000.000)
(490.000)
195,000)
(5,123.843)
9,693,000
s 4,569,157
Actual
(Budgttary
Basis)
Variance
Positive
(Negative)
s 2,579,1 84
16,626
11,800
s 179,184
11.126
8.800
2.607.610 199.110
3,266.922
23.549
9.638
565,057
3&.822
32.566
10.789
3,300.109
(692.499)
647,234
846.344
(254.866)
(47.378)
3.000.000
235.134
47.622
s
(994.743)
9,693,000
8,698)57 s
4.129,100
4,1 29, 100
• 140.
COUNTY OF HAWAii
Blktway Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgerary Basis)
For the Fiscal Year Ended June 30, 2023
Original
Budget
Final
Budgcr
Actual
(Budgetary
Basis!
Vadan~
Positive
(NeRalive)
Revenues -licenses and permits. bicycle tax $ 46.000 s 46,000 s 46,219 s 2 19
Expenditures • highways and Sire.rs 199,000 199.000 94.768 >04.232
Excess (deficiency) ofrevenues over (under)
expenditures
Fund balance at beginning orfiscal year
Fund balance at end or fiscal year
( ISJ.000)
SS6,901
$403.901
( 153.000)
556,901
$403.901
(48,549)
556,901
SS08,352
104.45I
$104.451
See am>mpanying ind"1'Cf1dcnt ouditors' report.
• 141 •
COUNTY OF HAWAii
Workforce lnnov11lo o &c OpportuAity Act Fund
Schedule of Revenues, Expendi1ures. and Changes in fund Balanc•
Budget and Ac1ual (Budgetary Basis)
For 1ho Fiscal Y car Ended June 30, 2023
AC1ual Variance
Original Final (Budge1nry Posillvc
Buds•• Budget Basis) (Ncgalive)
Revenues • intergovernmental s s 1,647.337 $ 1,453,384 $ ( 19),953)
Expenditures • hcallh. educa1ion and welfaro 1.647.337 1.453.384 193.953
Excess ofrovenues ovcrcxpendi1urcs
Fund balance a1 beginning of fiscal year
fund balance ai end ofliscal year s s s
Sec accompanying indepe,.de.11 ....Si1<>rs' report.
• 142.
COUNTY OF HAWAII
ColfCou~fund
Schedule ofReve11un. EApcnditonn. and Changes in Fund Bal~·
Budget Ind Actual (Budgcwy Basis)
F0< the Fiscal Year Ended June 30, 2023
Actual Variance
Original Final (Budgmry Positive
Budget Budget Basis) _ !!'Jesa1lve)
Revenues:
Chat&CS for services s 875.313 s 875.313 $ 984.371 $ 109.058
Expcnd11ura:
Culture and ,_ion 1,156,368 l.286.S15 1.251.607 34.968
PC1lsion and mi~1 conlribotions 299,IOS 293.105 2U..541 4.S6<1
Emplo)ttS' hnllh insurance 142.000 130,000 126.773 3.217
Olllcf 6',.207 3.000 285 2.715
Tocal expenditures l.66S,6a0 1.712,680 1.667.206 4 5,474
Oefo<:iency of revenues under expenditures (790,367) (837,367) (682.835) IS4,532
Other financing sources:
Transfers in • General Fund 790,367 790,367 790,367
excess (deficiency) of revenues and other sources
over (under) expcnditures (47,000) 107.532 154.532
Fund balance at beginning of fiscal year 236,708 236,708 236,708
Fund balance at <nd offiscal year s 236.708 $ 189.708 s 344.240 s 154.S32
Ste _,,....,...)ing irodcpc:•Mlml llldaon' r<p>n.
• 143.
COUNTY OF HA WAii
Geotberm•I Relou tlon ud Community BeneOts Fund
S<:htdule of Revenues. Expenditures, and Changes in Fund Balance •
Budget and Actual (Budgetary Basis)
For the Fisca.1 Year Ended June JO. 2023
Original
Budge!
Final
Budget
Actual
tBudgerary
Basis)
Variance
Positive
(Negative)
Revenues
Miscellaneous:
Geothermal royalties $ 600,000 $ 600.000 $ 805,316 $ 205.316
Expenditures:
General government • planning and zoning
Public safety • fire
Cultw• & Recreation
l,000,000
300.000
640,000
300,500
660.000
J00,500
627.240
640,000
32.760
Total cxpcndituru
Excess (deficiency) of revenues over
(undc.r) expenditures
Fund balance at beginning of fiscal year
1,300,000
(700,0001
4,988,281
1,600.SOO
( 1.000.SOO)
4.988,281
927,740
( 122,424)
4.988,28 1
672.760
878,076
Fund balance at end offiscal year s 4,288.281 s 3,987,781 $ 4,865.857 s 878,076
S<C accompanying ind<pcn<knt auditors' repon.
• 144.
COUNTY OF HAWAII
Schedule orRn-mun. Expcndiluru., and Changos in Fund BalJlncc •
Budlfl and AClual (Budgetary Basis)
For the fiscal Year~June 30. 2023
Actual Variance
Original Final (Budge1ary Posirivc
Budget Budget -Basis) (N~ative)
Revenues· Ileen"" and pennits • highway
beautification $ 200.000 $ 200.000 s 214.89S s 14.895
E>pcnd11urn:
Hichwa)s and streets 202,9SO 202,910 202.8$2 98
Cuhurc Ind recreation 50.000 50.000 3.0&a 46.912
Tocal expcnditur<S 2J2,9SO 252.950 20S.4).IO 47,010
Otflcicncy ofrevenues undct expenditures (S2,950) (S2,9S0) S.9SS 6 1.<JOS
Fund bllaftC" at ~ginning offiscal rear I7S,8S7 17S,8S7 175.857
Fund balance at end offiscal year s 122.907 s 122.907 s 184.81 2 $ 61.905
Sec accom1>nnylng independent audi1ors' rcpun.
• 145 .
COUNTY OF HAWAII
~n~r11I Ex~Tu: Fnnd
Scheduk or Rev<nua. Expenditures, od Clwtges in Fund Balin«·
Budget end Actual (Budgewy Basis)
f0< 11M: Fi5Cal Year Ended June 30. 2023
Actual Varianu
_
Orlalnal
Bud,B!!!__
final
Bu<111et
<Budgelary
__Basis)__
Posi1ive
!Ne&alive)
Kevenuctt:
Oenernl excise tax surcharge $ 50.000.000 s 50.000.000 $ 69.548,494 s 19.548.494
01htt 28.709 28,709
Total rcv<nucs 50.000.000 S-0.000.000 69.577.204 19.sn.z04
EJ(penditurtS
Hlahwa>s and Slrects • mass "-it 30,8l6,915 J6J36.915 n.n6.026 2.560.&&9
P<nsoon and retirement contnl>utions 2&0.000 JS-0.000 320.S-Oa 29.492
Emplo) ccs· hahh insul'lllCI! 250.000 180.000 ao.193 99.107
Olhcf 155,121 155.128 0 155,121
To1al expendi1urcs l 1.522.043 37.022.043 34.117.428 2.844.615
Excess of revenues over expendi1urcs 18,477,957 12.977,957 35.399,776 22.421 .81 9
01hcr llnanclng uses • lransfors out •
Transfer$ out • C'aphal Projects Fund (24.977,957) (24.977.957) (24.977,957)
f r111sfers out • Serial Bond Redemplion Fund (6.200,000) (6,200,000) (6.200.000)
Transfers out· lniercst Fund (2..)00,000) (2.300.000) (2.J00.000)
Excus (deficiency) orrcva1ues
o•er (under) expenditures and other ma ( 15.000.000) (20.500.000) 1.921.119 ll.421.819
Fund balance 11 bcginnine orfiscal )ear 67.162.304 67.162-304 67.162.30'
Fund balance 11 end orf1SC31 year s 52.162.304 s 46.662.304 s 69.084.llJ s 22.421.819
s... -pan>iroeindqlmd<nt oudilofs' rcpon.
• 146.
COUNTY OF HAWAII
Puk ~icltloa Fund
Schedule or R~mucs. Expendilures. Ind Clwig<s in fund lhlancc •
8udgt1 Ind AC1.W (Budgetary Basis)
f0t the Fiscal Vear Ended June 30, 2023
Original
_o~
final
Budget
Aclual
(8udgc1ary
Basis)
Variance
Posi1ive
(Ncga1ivc)
Revenues -investment earnings
Excess orrevenues over expenditures
Fund bllance at beginning ofri.sal )eat
Fund bllan« at ~d offucal year
s
61.on
s 61,072
s
61.on
s 61.072
s 1,201
1.201
61.072
s 62.273
s 1,201
1.201
$ 1.201
• 147.
COUNTY OF HAWAII
Short-Term Va~tion Rental Enforcement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance·
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2023
Actual Variance
Original final (Budgetary Positive
Budget Budget Basis> (Negative)
Revenues:
Licenses • ST vacation rental fees s 496,250 $ 496.250 s 3 12.7'0 s (183.500)
f ines and forfeitures 10.000 10.000 11 ,499 1,499
Total revenues S06,2SO 506.250 324.249 ( 182.0011
Expenditures:
Ocneral government:
ST vacation rcn1al enforcement 422.724 422.724 365,780 56.944
Pension and retirement contributions 102.000 102.000 99.210 2.780
Employees' health insurance 60.000 60.000 S6,!70 J,830
Other 21.S44 21,544 21.544
Total expenditures 606,268 606.268 52 1,170 85,098
Deficiency of revenues under expenditures ( 100.018) ( 100,018) (196.921) (96,90J)
Fund balance at beginning offiscal year l,SSS,68S 1.555.685 1,555,685
Fund balance at end of fiscal year s 1.455.667 s 1.455.667 S IJSS,764 s (96.903)
• 148
COUNTY OF HAWA II
Geothermal Asset Fund
Schedule of Revenues, Expendlturu, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2023
Original Final
Budget Budget
Revenues:
Licenses -geothennal assessment $ S0,000 $ S0.000
Investment earnings
Total 1"Venues S0,000 S0.000
Expendilu"'5:
General government S0.000 S0,000
Total exP"Oditurcs S0.000 S0,000
Excess of1"venues over expenditures
Fund balance at beginning offiscal year 2,320,S66 2,320,S66
Fund balance at end offiscal year $ 2,320,S66 $ 2,320,S66
Sec occornp"nying independent auditors' repon.
Actual
(Budgetary
Basis)
s so.ooo
48,910
98,910
S0.000
.S0.000
48,910
2,320.S66
$ 2.369.476
Variance
Positive
(Negative)
s
s 48 ,910
-149
48.910
48.910
48.910
COUNTY OF HAWAii
C11s1odi1I Fund s
Combining Statement ofCustodial Funds Fiduciary Net Posillon
June JO, 202J
Sla!C
Weigh!
Tax
Fund
Improvement
District
No. 18
Fund
Improvement
DiS!rict
No. 19
Fund
Improvement
Dlsirict
No. 20
Fund
Improvement
District
Revolving
Fund
Performance
and
Refundable
Deposits
Fund
A.ill!!.
Cash and cash equivalents
Due from O!hCr CUS!odial funds
Other receivables
Tora! assets
$2,20JJIJ
$2,203,313
s 397J30
17.597
$ 414,927
s 617.458
938
$ 618.396
s 682.126
5,041
$ 687.167
s 424.496
$ 424,496
$ 149.895
$ 149,895
klabili1ie$
Accrued liabilities
Due to other custodial funds
Advances payable
Total liabilities
$2,203.313
$2,203,313
s 1.093
28,828
$ 29,921
s
s
1.645
30
463
2.138
s 4.924
27.358
$ 32.282
s
s
s
6,325
$ 6.325
Net Position
Rcstricred for others
Tora! net position
s
s
s
s
385.006
385,006
$
s
616.2S8
616.258
s
s
654,885
654.885
s
$
424.496
424.496
s
s
143,570
143.570
Sec accompanting indcpcndcllt auditor~ report.
-ISO
Flexible
Spending
Account
s 433,595
s 433.595
l.,apsed
Warrants
Fund
s 444, 126
6,S35
41,754
Non-Profit
License
Pla1es
Fund
s 37.190
$ 492,415 s 37,190
OrJan and
Tissue
Educa1ion
Fund
s 5,516
BusiMS1i
Improvement
Districl
I • Kailua
s 2.63S
14.997
s 5.516 s 17.632
Total
$ 5,397,680
6.S35
80.327
s 5.484.542
s s $ 37.010 s S,5 16 17,632 $ 2.271,133
180.00 6.535
56.649
$ s $ 37,190 s S,516 s 17,632 s 2,334,317
s 433,595
$ 433,595
S 492,41S
s 492,415
s
$
$
s
s
$
s 3.1 50.225
s 3.150,225
-15I
COUNTY OF HAWAii
Custodial Funds
Combining Statement ofChanges in Custodial Funds Fiducial)' Net Position
For the fiscal Year Ended June 30, 2023
Additions
Tax collcctions for state
Special assessment collcetions
Developer deposit
Employee collections
Lapsed checks
Collections from vehicle registrations and licenses
Investment earnings
Total additions
~dutlloas
Payment oftaxes to state
Payments to state, not for profits and
improvement dis1ric1
Contributions 10 debt repayment
Administrative charges
Community facility district expenses
Rcissuancc ofchecks
Reimbursements to employees
Olhcr
Total deductions
Change in net position
Net position at beginning of fiscal Y""'
Net position at end offiscof year
State Weight
Tax Fund
S 27,458.&35
27,4S8.83S
26.265,121
1,193,71 4
27,458,835
s
Improvement
District
No. 18 Fund
s
91.737
7,245
98,982
124,427
1.093
SJ88
13 1,108
(32,126)
417,132
s 385.006
Improvement
District
No. 19 Fund
$
54.861
11,431
66.292
SS. 144
1.644
6,782
631570
2. 722
61 3.536
s 616,258
Improvement
District
No. 20 Fund
hnprovemenr
Disuict
Revolving
Fund
s
222.177
s
11 ,760
233,937
8.187
8,187
86.084
4.924
s
14,879
IOS.887
128.0SO
S26183S
6S4.88S s
8.187
416~09
424,496
-152
Pcrfonnan«
and
Refundable
Oeposi1s
Fund
Flexible
Spending
Accoun1
$ s
1.502,619
474,461
41,501
1.544.120 474.461
l.S72.612
$
52,883
1162S,49S
(81,375)
224.945
143.S70
46S,807
465,807
8,654
424,941
S433159S
Lapsed
Warranls
fund
s
S4,988
S4,988
43..559
43.SS9
11.429
480,986
$492.4 IS
Non·Profil
License
Pla1cs
Fund
s
131.495
131.49S
104,S4S
26.9SO
131,495
s
Organ and
Tissue
Education
fund
$
20,633
20.633
16,541
4.092
20.633
s
Business
lrnprovcmenl Total
Ois1ric1 Custodial
l • Kailua Funds
s s27.458.835
1.476.888 l,84S.663
1.502.619
474.461
S4,988
193,629 .--38,623
1.476.888 31.S68,818
26.265.121
1.474,002 l.S9S.088
265.6SS
2.886 1,235.303
l,S72.612
43.SS9
465.807
80,132
1,476.888 3 1,523,277
4S.S41
3.104.684
$ s 3.1S0,22S
• ISJ·
COUNTY OF HAWAii
Private Purpose T rusts
Combining Statement of Private Purpose Trust Fiduciary Net Position
June 30, 2023
Assets
Cash and cash equlva.lents
Invcstm<enlS
Total assets
Shippers'
Wharf
Trust
fund
s 628,348
1,897.197
$ 2.52S.54S
$
s
Total
Private
Purpose
Trusts
628,348
1,897,197
2.S2S.S45
Net Position
Restricted for Other partie$
Total nel position
$ 2.525.S45
$ 2,525,545
s
$
2,525~45
2,525,S4S
See accompanying ind<pendcnl audiiors' report.
-154
COUNTY OF HAWAII
Private Pupose Trusts
Combining Statement ofChanges in Private Purpose Trust fiduciaiy Net Position
Fort~Fiscal Year Ended June 30, 2023
Shiwer>' Total
Wharf P·rivatc
Trus1 Purpo~
fund Trusu
Additioa.s
lnvesltmttt earnings:
Dividends s 52,002 s S2,002
Interest 11 ,372 11,372
Net increase in fair value ofinvescmen1s 59 134 59 134
Total additions 122,5os 122.508
Deductions
Grant paym<111S 27,934 27,934
Investment Ftts 14.8 13 14.81 3
Total deductions 42.747 42.747
Change in net position 79.761 79.761
Net position. beginning offiscal year 2.445.784 2,445,784
Net position, end of fi~al year s 2.525.545 S 2)2S.S45
See accomJl<lnylng independent auditors' repon.
• 155.
This page intentionally lef\ blank
-156
STATISTICAL SECTION
(UNAUDITED)
Contenls Page
Financial Trends These schedules contain trend information to help help the reader understand
how the County's financial performance and well-being have changed over time. 111
Revenue Capacity -These schedules contain information 10 help !he reader assess the Coumy's
most significan1 local re venue source, the property tax. 115
Debt Capacity -These schedules presen1 in formation to help the reader assess the affordability
ofthe County's current levels ofoutstanding debt and the County's ability to issue additional
deb1 in !he fu1ure. 12 1
Demographic and Economic Information These schedules offer demographic and economic
indicators to help the reader understand 1he environmen1 wilhin which lhe Counly's financial
acilivities lake place. 124
Operating Information These schedules coniain service and infrastructure data 10 help the
reader unders1and how the inforrna1ion in the County's financial repon relates 10 the services
provided and 1he activi1ies performed by 1he County. 126
Tab!<: I
COUNTYOFHAWAl'I
Net Position by Compo-nent
L11$1 Ten Fiscal Ye~
(iovcmmen tal acov1tbcs
Net 1nvtstment in capital a.~scts
Restricted
Unrestricted,.,
T01.al i-0...-cmmcntal aeti..·itics net position
2014
$734.889.023
89,620,9)6
! 18.007.62•!
S806.502.335
2015
$748,754.127
74.813.856
IJSl.386.671!
$472.181.912
2016...
rcstalcd
$824,846.090
74.694,901
(403.934.491 !
S49S.606.SOO
2017, as
restated
$835,787.961
70,439,580
(745.796.790!
$160430751
2018
S840.099.433
91,458,455
(791.538,872!
s 140.019.016
2019
$866,986.564
83,230.067
j822.112.ll4l
s 128. 104 •97
2020.as
restated
S891,782.081
96,650,462
(835.802.574!
s 152.629.969
2021
$917.6 12,276
146.204,81 4
!881.626.3 11)
s 182.190.779
2022
S955.7l4,185
114,790,899
(756,512,63 1!
SJ 14 012.453
2023
s 1,027 .992.5•8
283.205.832
!742.5-08.1 J6l s 56M90.294
V• .....
&1$ tntS$•fYpc 3C11VIhC$
Net invesuneru in ~1ulasms
Rctulcted
Unrtstnctcd
Tocal busmess-cypc activities net pos1000
Primary tovernmcnt
Net U'l~l in capital a.sseu
RC"Sldcted
Unrcstric-1ed
Total pnmary io\·ctnmcr.t nei fX>11Uon
s 368.849
1.093.750
s l.•62599
$735.257.872
89.620.936
! 16.913.87•!
$807.964.934
$ 428.815
1.040.216 s 1,469.031
$749.183.542
74,813.356
!J50.l4MSSl
$473.650.943
s 481.039
1.036,870 s 1.517.909
S825,l27,129
74.694.901
(40l.897.621 l
$497,124.409
s 524.292
1.022.523
$ 1.546.815
$836.3 12.253
70.439.580
(744.774.267!
$1 61.977.566
s 595.538
1,1 18,492
s 1.7 14.030
$840.694,971
91.458.455
(790,420,J!Ol
s 141.733.046
$ 667.m
1.211.?01 s 1,884 978
$867.654,)41
83.230.067
(820.894.9lJl s129.989.475
s 1.334.932
1,277.986
s 2 61 2.918
S393,117,0IJ
96.650.462
!834.524.588l
s 155.242.887
s 3.406.506
884.574
s 4.291.080
$921.018.782
146.204.814
!880,741,737! s186,481,859
s 3.513.85•
1.003.398
s 4.517.252
S959.24ll.039
114,790.899
pss.S09.2lll
$318.529.705
s 3.537.456
1.109.631
s 4.647.087
s 1.031530.004
283.205.882
!741.398.SOS) s 573.337,381
Unaudiled · Set accom~nyint i~cm ~ud1t()t( l'(pon
' &lances pnor to 1-'Y 20 15 have not been adjusted for the implcmenl.\ltloo ofGASB S1atl"M<'nl NQ 68. Accounting a:nd Financral R.tpottmg for PenstOnS -an amendment ofGASS StatCf'l'tefl1 No 27 and
GASB Statel'ft.Ct't No 71. Pcn,ion Tr&Mition fOf Contnbuuons Made Subsequentlo 1he ~•casurcmcnt Om -an amendment ofGASB Staittmenl No. 68
1 &Jancn pnor to FY 2017 ha""t not been adjusted for thr implcmentalion ofGASB Stat~l No.7S. Atcoimliflg and Finontiol !Uportingfor Postmq>loy~nt &nefits 01Mr Thon Ptnsions.
Tab~2
COUNTY OFllAWAl'I
Clia•ia io Ntt Posihoa
Last Ten FisaJ Years
2014 .?OIS ?016. as 1011 2018 1019 20l0 lOll 1021 JO?J
restated
Program RnC'ftua
~ICllYll\lt'J
C~rgn ror SCfVl«S
General go"Cl'M'ltnC s l.49.5,917 s l.2.C6_106 s 2.6S9.W s l.1'91.430 s 1.3:14.119 s l ,149)SJ s • 320.7)1 s l'M.63 1 s 1.50S.74S s J.,S04."61
P\lblte saftty S. S6l.424 s 926)16 S.l94)44 S,739.064 6, ll4j()f 6.220.'MO S.9 17'11 6.)06.227 l ,37S,60l 1.797.23S
H1ab>A,~and SlttdS 13,901,67'1 16.04.J.04S 16 965,449 16,712.6411 17.l<JS.3 16 17,110.1 07 16,SIS,6H 17.414.046 17,617,7Sl 17,&...'9.11 1
He.a..'th. cdUCll ton and "''¢':(ate SS9,311 S41,711 52.l,&24 l)OS,662 92l,6S. 1)20)63 l .Sll.67? l ,030,9U 9)0,661 l.271.268
Cuhutt aod r«re1uon l,9S.,ll3 2, IS0.900 l ,9Sl.SS3 1.1«.JIO 1.999.177 1,940)02 1.451 42' 1.10.130 1.77'1.SOl 2.33 1297
s.nw..... 16"26.lll 17116.111 19.0IU28 20.196.167 l l.910.2S3 lS.ISl,609 2$.671,37' lU10.090 29.606.706 ll.04UIO
()ptt.a11ria lf&ntJ and contn~ions 4l.9S7. l10 47,406.10-t .4 7.ll4.4SI S?.J97,94S S7.600.ll66 64.JIS,142 7S.SSJ.629 16S.ll6,320 102)16,9?1 141,690,010
Capital grants llnd contr1bwttom 6? )70 ..97 29621907 60.230.146 14,714.692 3 1.S30719 21,37S.S66 4) .49199) 21.772.ll7 36.716.671 1.39.937.lll
T01;1I~actmia popu'I fC\'ftllln 146-221,001 ll I .760.S77 IS• .171 .786 116.971.911 139.707 SOI 141,0l l,012 17Hll ,9SO 2• 6171.76' 19S.919.S6S ) 46.416551
Bustncss-typt aoi-v1t1es
C'hlrgcs (Or Kl'\'IC~S
Hnhl'I. c611C111on1ftd \\'C'l(ar~ '61.0ll 4Sl .l04 4S7.'42 •69.0S2 10) ,197 SI0.3S2 '12,150 41S491 100.472 S<i l.139
Opcru1r1.1 pnts •nd coo.1nbvt1ons 117,119 1ll Ml 13l.9l2 1.32.435 22• .921 261.l~I 26927) 261,121 217,137 lll,212
Toi;.1~ncu-c)'Pt1CJ1vflics PfOp't"' ~ 59S ll7 566.9• 6 S91,J74 601.$17 728,518 772,200 711,421 748.319 771.109 !72.421
V> 00 To..1prill'lley rp'<'lvcmmiem pto~m r('Yt11Uft s 1•6,ll3,IJ9 S 12l.l21,S2l S IS4.76J~O s 117.173.498 s 140.436.026 s 141.793.lll S 176.l S0.373 s 2•6.920.0ll s 199.697,874 s 347.238.971
E.xpc-•srs
<'.ovcmmcntal achvitios
Ger+l!ral govemmcru s S9,448,04l s 69,819,019 s 61,06'.440 s 72.336,020 s 7S,740,262 s 88.660,088 s S6,74 7,4l6 s 18,736,121 s 84,642,838 s 101,.326.5.33
PublKsaJ~y 16J,8S9,l!l 17S, 104.2?3 187,160.90) ?29.507.091 20.139.168 241.111.46.1 274,2S9,439 JS3.J IUR6 242.llS.OIO ?l l,891.763
Highways und sln.~s 3R,670. IH 4S,989,0JS 45..255,3-05 11.168,841 54,721.)32 62.066.700 67, 161.387 71,6ll,009 66,452,718 132,510,419
Health. C'd1JCanon and \Y(lr:nt 28.34l.OS6 ) 4,J0•.166 39,722,480 40.299.077 lS.197,718 l7.9 19,67S J7,04l .ll6 41.2 1U64 6 1.230,308 115,SS0,1>8
Culture a~rccr<atioo lS.190. 11 7 31.221.174 27.)IS.• SI 31.2 13.973 JS,834.11 l 3S.90l.06 1 33.613,ll• ?S,092,892 3l .S73.321 36,267,778
Samtallon 41.721.11 0 41.467.081 48,52 1.434 S6.60S.364 SS.OJI.Oii 62.77S.07• 61.170.497 61,260,244 61.07S.l07 64.095.41 1
lntert51 on ton1-1cnn debt 12 911,436 l l,.362,411 II .16l.7S6 IJ.l8S.794 IS.49).671 13.277.612 14.17&.476 ll.111 .101 13.011 .481 IJ. 181 .S06
To1aJ govtmmcntaJac1lvh1cs ~p¢ftset 377 lll.719 .Cl 1.Jll,512 424.202.769 499.216,660 S17.SlS,6&1 S4&,711,71l Sll .172.SOS 661,0lB.128 S61.S.Cl .O?l 695.923.593
Bu.smc:ss·t)pc ac11v11~
Hcalrh. c:ducatt0n and "-c-l(arc
lcuJblJSlf'ltSS--t)'flC a((l\'11~-S tXJ>C1"11"S
Tocal pnmary 1-cr.--anmcnl csp;l\$CS
494,722
494.721
S l11.~l.441 S "
S61,!1 3
161,813
I 11J.39S
S4•.ltll
S-'4,8tl3
$ 42C.741,$77
573.8$4
lll.8S4
s •99.790.l14
S66.364
S66.164
s l ll.llS.$41
609.•16
609,416
s 549.)28,201
64l.4S2
64S.•ll
s lll.Sll.2S7
740,:?11
740.lll s 66?.791,339
721 4$4
728,454
s 562.269.477
a14.2l a
174.238
s 696.7'17.331
Ntt Ei:P"aw
Go''ttnmcnla.I actlYllJC'S
81o1Sl!tn$ l\p(° Ktt'llllC'S
Toul po1N.ry '°'--cnimC'nt nct c"'pmsc:
S(?3U4S.717l
I00.41l
S(l}l .245.JO?)
S(2'9.Sll .00l l
S. 133
S(219.S4S 17?)
$(210.030.91))
-'6966
S!:?69.9S•.Ol7!
$(3&2.l4C.6'9)
2'7,663
S(JSl.117.016)
S(377.111.17ll
1616$4
S(3n.619.Sl9J
$(400.697.633)
162 714
S(400.S3'.919)
$(4~)43 ISS)
IOS971
S(-'06.237 "">
$(41l.IS6.3641
I.IOI
S(41S.17t,?S6)
S(l6l.6?1.•lll
49.lSS
S(l6l.S71.60ll
S(l49.I07.042)
( l.8171
S(:l49.IOUl9)
Coal'IM!Cd fl("\t Pl$C'
G~ncnl Rt,'tllllH 1nd Oillt:r Ch1ft,"3 ln Net P•dt~o Table 2
Govcmrncn1.al <1Chv1tacs
Gcntt81 rtvtrUJC$
Propcrt} ta.'<."S s 221.26().681 s ll7J17.225 I 148,3.Sl,11 l s 168.869.Jn S J04.294.U l s 315,969,lll s Jll,515.661 S JS?,lO<l,950 s l7l 14..094 s •0.888,j68
Public $tl'Yltt~1a.'es IOJIO,l'I IOJIS,65' 9,800,948 S.-'ll,l.40 7.61 l.IS6 l ,49J.409 U6l.'16 1.166.llO 8,010,990 9,646.274
Cooney t~lmlIC(omodwons ta_'17,51 1,739 ll.191.0SI
Public U.1ilitYfranchu.e ta~ 10.792,967 10.l?C,.l7a 9,004.JlO 1,950.150 1.131)90 9 ...1.9116 9,J6'.Sl I S.l59.374 9.141 ,Jl6 l?,OS l,541
Fuc:I taxes 7,373,0 S 7,632.973 7,9Jl.810 S.2'8,676 ll.342.Cl6 17,l•JJU. lO.IOS.062 ll,76J.l7' ll ,S46,U9 21,.6J1.'177
Ger.enl cu~St r&it swclJattt' 1l...S t1Jl6 JMl7.94! 50.211.S IO 6l,7l6.9l0 69,541,494
Gral\1.S and contnbut10r.s noc ~tnc:wd co
'!'«'fl<IJ(opM 17.705.917 19.506.421 19,!57..Sll 19,810,090 19.671.189 19,741.lll 16Jl0Jl7 SS6,4U 6)1,219 Sll.Sl7
lnYC:sUn(Ct am111p (loss) 111.606 671J~ 316)9) 661.11' 1.l4 1.JS6 l.• l0.693 l.JJ0.161 SSl,401 190,002 I l,101.6IO
Oth<r S.S1"4 141 1)64.&94 12.0:1 1.0SS 7.!m.071 2J39.241 l.Sotl.l4S ?.IJ1,l 19 1.llS.Ul 1,69U« l.•ll,102
TrmsfCn !616.n61 jl 669,66ll 1m.111i ( 129..SOJ
local ~lac:uwcs 271.90). 1}4 !9<.60HIO l07.0<l7.l6l 311 .095.0) 3S7.' l9.4ll 313,'IU.ll• 4lS 6S0.4S7 " '·'-'1. 1 l t •9-t..fi4 J.lll 60<l IB<.UJ
BUSJncss.typ:" act:MUCS-
General fe'C'Qgd
ln~:n)t(neam1oss 1,1)9 1.19'1 l.91l 1)4) S,S61 UJ4 S.19) J9l •J6 ?,ICM
TransfetJ 616.n6 1.669.661 11S.H 1 129 Sii
Tota! busU'IC'U-l.)-pe:-aa.1v1tct 1.739 1'99 J.912 1.243 5.561 1,2)4 6ll 969 I 670.0S< 176.117 1)1.652
TotaJ pn:ma.ry aovcmmc:m s l?l 904 Ill s 194 604.109 sJOl Q.49.27• s Jll .096676 s 357.444.999 S l U .791.l•I s '29171.•26 s «7.117.2?1 s '9• .619,449 s 60<!.)16.5)5
°""'
v. '°
Clungea In Ntt Pos.Hion
(io\lcmmcnial acttvrtics
Uusmess-typc IC\f'\'lhtt
Toul pr.,..,,.IO\~m-cfN"t" •n tll"I """''litln
s
s
•1JS7,417
101154
426!9,m
s
s
S.OSl,IOS
64)2
l.OSl ,ll7
s )7,016,379
0 .878
s )7,065.257
s (61,149.246)
21906
S !61.llOJ•OI
s (lil.411 .73!)
16l.1 1S
s c20.m..s201
s (11.91019)
170,943
s (11.70,SJI)
s
s
2?.l-06.601
717,940
2l.Ol'.S42
s
s
29.S~,llO
1,678.161
l l.2lU7l
~ ll l.8ll.67'
226.172
s lll .O<l1.S•6
i 2.54.677.14 1
119.13!
s 2S4.807,676
Un11ldilt'd · stt ecc:owiptft)'Wll indcpc~a!Mj/MQ" tepon
Ta~J
COUNTY OfHAWAJ·J
fu•d Bala•cn. ~cnmtottl Fu•ds
tModifICd aoorual b.l:sts of.KCounttng)
2020. as
201 • 2015 2016 2017 2018 2019 ......... 2021 2022 2023
Gcn<nl fu:id·
Nonspendlblc s l.7'14,96) s J.S7l.70 s S,774,)71 s 5-561.433 s 6,714,871 s 7.297.UO s 8,187,482 s 9.491 101 s l.ll9.l82 s 9.108,261
RC$1nctcd S.• 59.JSO • .554 871 9,022,lOl 15.112.054 16.800.709 26.«2.65) JU97,l>80 21.262.5•4 21 .662.519 J9.JS7,02)
Commintd 12.7'14.782 12.925Sl9 Jl,5)7,067 14.0ll.997 14.533.506 16211.15 1 1..511.216 8. IS9,87S U90.09l 9.750.754
Ass1ttned 31,673.075 l0.9JJ.CJ.19 25.511.SIO 13.059.474 19.876.560 23.117.)29 45.992.9 17 31.JSl. IH 46.550.742 49,360.064
Unassigned l.8l4.189 164.1'5 l.114.478 3.119.779 1162.773 4..109.187 26.627.CJ.l l 33.159.36.l
°' Total gcnenl fund0 SS.541,059 S2, 151.392 SJ.&52.251 47.746,9$8 61 .040.124 76.118.742 84.859.068 38,$73.&95 I 1 l.SS9.797 190.735.464
All ad...-Oov<mmcnt l'unds•
Restricted 107.165275 82.lJl.ISI 92.746,678 70.J97.186 108,275.893 101.S46.71S 140,894,017 201.5S4.88J 210.571.618 ))0,682, I 87
Committed 38.029,42•1 •ti • I 2'-668 41.258,644 39..299.995 40,851.304 44.167,734 45.977.492 41.Ml8.984 S0,4l l ,27l 60,091 ,586
Assogned' S.216.981 l.968,52• • .009,520 3,039.319 2.551.817 2. lll.223 l.895.032 4.066,258
Una$$igned ll41 9S8,~5) l)S.BSS) !ll.S91) ! 18,472.707}
Tot31 ofot~@'0Vett1-m(nta l funds ll-0.•11 .680 108.399.781 JJ7.973.846 I IJ.707.401 152.130.661 143.247,669 168.39U02 245 29'1,090 264.887.921 394.840.0l I
Total Fund 81~ncu S205.9Sl.7J9 s 160.5'1.17l s 191.826.104 s161.434.)19 5213.170,785 Sll4.4l6.41 I S lSJ.257.870 SJJJ,872.985 Sl76.447.720 s585.515.495
Unaudikld · Stt ac<:Oft'lpany1nc 1nckpcndc:M 1.udliort' tt.'1JOl1
' A.mOUl\.I for fi:suJ 'fU1 lOI• l'llJbitcn.C~~d ((Ir ('OfWJ&C'nl:)'
T~·I
C'OUNTYOFHAWAl'I
Cti.ltflJH-in fund U.1ducQ, Ctt\'tr~Mtll'I Funds
(Modirtlf'd ttecn111) basi$ of~Minvt
l..ll'1 T~1fi$C11I Y~rs
(A1nout1IS i" l110US~id~)
"'" 201$ 2016 ,.,, 201! 2019 2020 2021 Ml 20?.\
ftc\·Cl'IUC.S..
PropMytilll
P\lbtic Sd"o-.OC co1npJ111')· 1a~
Coumytr'8l\, i(l'.'-4 accOl~M)'"1~:<
Fud t3.'\
Pub.he 1.11 ih1y fi311d\1k tax
l..ccr+~and pen'lll1l
Gn~talclli!l~ ra11 sarch~
ln1n1i91·en1mcn1.al
Charge$ for scniec~
l nr~tUlc~ e11mi"t$ (loss)'
Od1et
$?2:\,4!2
10,;aq
7.)7)
10.79)
19.6 t8
7!)S?
19,)92
1.704
~.()84
S2l6,190
10,38<1
1.63l
10.824
12,046
86,272
20.lS7
116
9.769
$249,os.t
9,$01
7.9.)4
9.004
22.,-4 )2
IS,l'tl
21,672
614
16.132
S266.Sl7
...42)
8.119
7.9SI
22.9l2
19)20
21.m
6)2
11.791
s301.699
7,612
1).)42
8.lll
Z4.0&6
'l0.02S
2.\: ,553
l .S92
4.tll
$31).6) 1
1.4~
17..)4)
9.442
24.6Sl
12,Sl8
101.6n
27..516
4,148
4.64)
f J:27.i &f>
8.il62
20. 10&
9.36S
2S.ISS
lS,Sl&
11).(1)2
3'),C.0
l .•81
4.174
SJSS, 161
l.167
18.76)
8.2S9
24.UO
S0.2!8
187.6SO
2<.M6
m
J.424
SJ72.701
! ,Oi i
12.7$1
21.547
9. 141
21.J.\:7
6-.l,737
118.6S8
29,641
2J
S.$84!
$44 1,71S
96·16
l.l.911
21.636
12..0Sl
2J.~·I
()l},5-t<J
1$9.710
ll.ll )
12.09$
.a.861
T0tal Re,'tuue~ J98.0&J ™ 1193 '421,816 427~461 47S.OS2 Sl4.0IS S18.211 61ll.99S 669,1)1 !2.S.972
Exfl<1\d1(ures;
C-~ctu.
C<nttld ~·tnwneni
Public A kly
Hi_fh,¥>'$)'$ 11nd$f(CCf$
S1Biu1ti1.W1
H<<11iilb, «li.ac;tto11 And \\'-CIO.rc
( •ltlltll ~tecrtat~
Pcnsil)n •I'd Mircmw1 coll4nt.l1iom
furq.~cd11(;\ffb i~•nw~
Qrlbcr pc»k'mplO)U1<111 ~~rds
0.1...
()cl.>1 SC(\~;
Pnncipnl
li:.t1:1~a
C't.J~°"''~
36.619
111..121
lOJ10
2'>.949
23,010
t 8.)34
33,0)1
26.7$6
) .l "O
l.2)S
19.0IJ
, ... <i44
Sl .J69
40.80S
122,81'>
20.984
31.464
Z•.S·I!)
20,0$6
u . .aas
27,731
4.S32 .....
22.00 ..
13,1111
79.)9&
-tO..tSi
12'1,4SI
2Z.419
34,0 IS
:? S,}80
21.561
41,lS9
l0,112
7,180
3,9.H
l2.4l2
ll,974
144,281
40.819
1 )6..16~
20.3!9
) 8,611
30J)S
21,196
43.11!
32.147
lt.'f9S
),8J9
22.0l2
17,289
111109
:I l.S71
IJ7.71S
21.401
39.lS2
29.876
21.324
49 • .i?-4
)3,Rtl2
14.8JI
4.(•12
'6,906
17,739
41.924
-41 ,800
US.094
27.4.t&
<t l,81S
J l.109
22,022
S3.IJ7
11.s 22
J'>,GJ7
4.lt4
30,577
19.22l
SI 897
47.lll
1.W.9'21
21.%1
4l,1.St
J0.943
2l.S33
6 1.813
18,846
"l,C.0 4
11.742
29)21
18..590
79.S36
41,0S9
2l2.212
?S.692
4S.282
41,)91
22,813
10.-042
20,107
~l8.19J
9.16$
:U.605
18.,2'4 1
72;4)9
Sl.008
163.317
)8,(M.,l
49,928
60.6;9
1).%.t
71.S9J
20Jl9
l8,<6 l?
<J.142
)6,691
18,728
c,.i.210
()l,(>jl
16 1,S<f·I
49,(.lG
S3J)IS
I0),%7
l S.1"2
7).46't
20.l<U
·ll .910
9 aio
J8.;ll)jl
11.6n
104.6113
T«ilA Ellptoo;ttm:s l90.77S 4Sl.37S Sl3.6SO 521>.~2 S4(),S60 S27.S9S SSS.&Sl G7S .• 9?9 6.U,,071 768.422
R~·enunO\'ef(wOOtt) E!l'.~tur« 7.!04 (47,182) {11 1.l:W) UOU'9J (6!J03) 13.UO) C7.S7:2J 6.066 ll.060 S7,S50
Od1tr f n\.,t)CiAgSour"«s (Vs-es):
Siik orasSC'ls l-• $111~ Re,'Ofril'I~ftldd IOis:Ss
St!co r bonds
h1o111~ofbol1d &t'ihC!f*llOA ·~u (6ANs)
fl.cfm~mg boM1
~Lllnon bonds
Rcr\1~1.~'OANs t»U"M1'e COAS
Plt), ncnl to ttfU&\&d bond n crow ~~m_
Rc1ir~1n(r,1 of fC(lo>'li4c4 tkbt
fl.ttlau of debt from C'tllttm '° ~l~«m
Tra~skrsiri
TNtt1s(mou1
10
" .l.072
61.2l8
{61.2381
1>
1.971
.$9,3'N
~S9,;J9.t!
6(,
3,)!9
7,J17
ll0.134
106..2~
2). 174
( '°3)
( 128.9!0)
S7.412
l57.412!
21
3,769
1,1.)0
S9,IOO
66.86•
{Y.1.864)
" 3,IW9
S.IS4
107.11(>
4S,7Jl.I
s.m
(27G)
(.$4,Sl7}
7.S.71 1
c?S.711 !
47
6.177
7,'4 )1)
77.240
l17.240t
10
2.m
174
30.2'9
90.1'>9
l90.199!
33
4.901
16.187
) 8.106
1 l .2S4
17,7•S
(}ll)
( l.l.344 )
86,-182
~86.4&2!
19?
19.lf6
92,669
~92.~9i
2<
11.702
1,02•1
99,000
28.500
11.119
(SSI)
t.\2,)'19
!ll2.37'>J
To>UI 0tl'.« fmMICUlJI soun:es l .096 ..... 140,908 71,720 116.071 14.263 33.28.S N.S-49 t?,SIS 151,S'18
Net <iwi4'¢ in fu~boJanc<s s I0,40ol
l)ct1 """''° 1c$ a pcf«nl1'1!C ()(
llOll~~a*():pt'l!4ilWC' 10.0%
IJ~lkd•)ff ~°*ll'*~flftdCPf~I ai.t\l..otJ' l ('{H)tl
' A1l'IOllM l"o1 l1$ed )~201.t hnb«• <flan..., (ot C<ll'-l'.Wtf'fl<')',
S(4S.186)
9.3%
s l'>.01 ..
9 1%
S130.1!9't
9.4%
S SO.S6l
20.fl.
s 10,68)
IOS%
s 2S.71l
'>.1 %
s 30.61.$
. ... %
'$ 42. S1.5
1),8~
$?09.128
9,1,..
-16 1
Table 5
COUNTY OF HAWAl'I
Real Property Assessed Values by Classification and Tu Rates
Last Ten Fiscal Y cars
(Values in Thousands)
Valoeof Building Valutof Land Va~or
Fiscal Class of Net Taxable Tax Rates Ne1Ta.ublc Tn Ratn NC1 Toxablc
Year Piooc11x Building PcrSI OOO Land PnSIOOO RalProPC<I~
2014 Rcs1dcnhal
l\panmcnt
HOlcl and Rcson
CommC'fCial
$2.961,309
2.431,31 4
669,8SO
648.273
s 10.05
l0.l!5
10.85
JO.OS
SJ,470.1•8
1,077.ISl
477.981
766.029
S IOOS
10.8S
I0.8S
IOOS
S6,43l,4S7
l,S08.467
1,147,831
l,414,302
lndu,tnal
Au,n<ultural Ill. Na1wc Forest
Conscrv111on
470,992
2.105,481
36.902
JO.OS
9.25
10.85
443.702
2,J6S.24S
255.602
IOOS
92S
I0.8S
914.694
4,470,726
292.S04
°'.., I lonieowncrs
Alfordllblc Rental Housing
2,645,121
llS.384
s12,084,626
6.15
6.15
2.537.1 28
64.662
$11,457.650
6. IS
6.15
S, 182,249
180,046
$23.542.276
Fiscal year 20 14 total direct rate $9.23
2015 Rcsidcntlol
l\pnnmcni
llotcl and Rnon
$3,234,567
2,748,462
715.560
s 10.05
10.85
10.85
$3,741,337
1,059.41 5
591.128
S 10.0S
10.85
10.85
$6,975.904
3,807,877
1,306,688
Commercial
lndusuial
l\grk uhur1I &: Notive Forest
Conservation
693,488
493,660
2,277,788
41 .991
10.0S
10.05
9.25
10.85
759.340
522,006
2,416.357
238.545
10.0S
10.05
9.25
10.85
1.452.828
1.015,666
4,694,14 5
280.536
I lomcowncrs
Affordable Rental Housing
2.885,636
109.462
$13.200.614
6.IS
6. IS
2.607,830
6 1478
SI 1.997.436
6.15
6 IS
5,493.466
170,940
s2s.198.oso
focal yiear 201 S tOlal di<ttt rate S9.26
Conun~ne~t P't•·
Table 5
Value or Building Value of Land V1luc of
Fiscal Class of Net T axablc Tax Rates Net Taxable Tax Rates Net Tuablc
Vear P1ooc:ny Build:na PerSIOOO Land Per $1000 Real Propcn2'.
2016 Rcsidcnu.tl
Apartment
Hoccl Ind Reso<t
Commercial
lndUSlnal
Apicuhural & Nall•• Foresr
c~ahon
llomeov.1'CTS
SJ,480.591
2.944.4S4
704.312
691,810
487.990
2.358.086
45.651
Z.965.718
S 10.0S
I0.85
10.85
10.0S
10.05
9.2S
10.85
6.15
S4.199,462
1,102.944
456,088
718,840
Sl9.9SS
2.540.590
242.363
2,727,912
S 10.0S
10.85
1085
10.0S
IOOS
9.25
1085
61S
S7,680.0S3
4,047.398
1,160,460
l,410,650
1,007.9-IS
4,898,676
288,014
S.693.630
AITO<dlblc Renul Housmg 132.752
SIJ.811.424
6.15 73.267
Sl2.SSl.421
6. IS 206.019
$26.392.MS
Fiscal year 2016 total d"Ir<Ct rate $9.25
°' \,.>
2017 Rcs1clcn11al
Apan~nt
Hotel and Rcson
Commercial
lnduwial
Agrocuhural & Na1ivc Forest
Conscrvntlon
Homeowners
Afl'ordablc Rcntnl Housing
S4.l 17,521
3.287.8n
751,005
741.099
504.084
2,746,489
52.668
3,323,185
147.676
$15,671,603
s 10.05
10.85
I0.85
10.0S
10.05
9.25
10.85
6. 15
6. 15
$4.395.220
1,on.230
470,390
736,639
519.750
2,636,805
249,458
2,842,257
74 53 1
$ 13,002,28 I
S 10.0S
I0.8S
I0.8S
10.0S
10.0s
9.2S
I0.8S
6. IS
6. IS
S8.Sl2.741
4.365.107
l,221.394
1,477,738
1,023.834
S,383,295
302,126
6.165,441
222.207
$28.673.884
Fiscal year 201 7 total direc1 rate $9.21
2018 Rcsl<kntlal
Aponmcn1
Hotel and R=n
Comm<rc1al
Industrial
Apicuhul'll & Native Forest
ConK<Va11on
Homco...ncn
$4,468,601
3.593.358
786,420
799.591
526,130
2.877.993
S3.807
3.706.817
$ 11.10
11.70
I I.SS
10.70
10.70
9.35
11.55
6.IS
$4,S39.0IS
1.080,647
Sii.659
749.661
SS0.670
2.696.SOI
27S.149
2.980.148
$ II. 10
11.70
II.SS
10.70
10.70
9.35
I I.SS
61S
S9.007.616
4,674,005
1.298.079
1.549,252
1.076.800
S.S74.494
328,956
6.686.965
AIT~blc Rcnial Housing 171.631
Sl6,984J48
6. IS 88.8S7
Sl3.4n.J07
6 IS 260.488
S30.4S6.6SS
Fiscal ~car 2018 total dired rate S9.93
Conunucd ttc\l 113£<
Table 5
Value of Building Value of Wind Value of
focal
Year
Class of
Pf0f)(r1l
Net Toxable
Building
Tax Rates
Per SIOOO
Net Taxable
und
Tax Rates
PerSIOOO
Nct Taxable
Real Proocn~
2019 Ros1dcn111l
Apartment
Hotel and Rnon
Commcrc11I
lndus:nal
Aaricuhunl cl Nat"• Forest
ConsavatlOll
H~~
A fT«dabk R<n11I Housing
S4,787,668
3.659,492
825.366
816,696
551,480
2.980.022
56.722
4,1 42.156
168.101
Sl7.987.703
S 11.IO
11.70
11.55
10.70
10.70
9.3S
II.SS
6.15
6.15
S4.686.016
l,OS9,7S2
H9.060
756.976
SS8.490
2.888.3+4
283.118
J.179,7"..S
86.803
$14.038.289
$ 11 10
II 70
II.SS
10.70
1070
9.3S
II.SS
6 IS
61S
$9,473,684
4,7 19.244
1,364,426
1.s13.6n
1,109,970
S.868.366
339,840
7.321,881
254.909
S32.02S.992
Fiscal ycar2019 total direct rate S9.88
°' ....
2020 Rcsidcn111I
Apanrncnt
liotcl and Rcson
Commerc11l
Industrial
Agricullurnl & Native Forest
Conse....,atlon
Homeowners
Affordable Rental Mousing
S5,619,Jl2
3,796,518
819,804
812,096
560.205
2,587,703
58,382
4,600,974
196,741
$19.051,735
s 11.10
11.70
l l.55
10.70
10.70
9.35
11.55
6.15
6.15
SS.261.866
991,947
522.042
785.018
583.820
2.S03,492
291,080
3.355, 127
97,347
$ 14,3911739
s 11.10
11 .70
II .SS
10.70
10.70
9.JS
II.SS
6.IS
6.15
SI 0.881 ,178
4.788,46S
1,341,847
l,597,11 4
1,144,025
S.09 1,195
349,462
7,956. 101
294,088
$331443,474
Fiscal year 2020 total direct rate $9.85
2021 Resldcn1l1I Tier I
Residential Tier II
Apanmcnt
Hotel and Rcson
Commcmal
lndustnal
Apiculturtl cl Niu•c Forest
Consavauon
Homeo"'ncn
AtTorcbble Rtn11l Housing
$3,311,054
Sl.768,349
J,893,578
824,785
834.~
566.179
2.7S4,94S
59.382
S,120..276
212.588
S20~5.940
s 11.10
13.60
11.70
11.55
10.70
10.70
9.35
II.SS
6.IS
6.IS
S4.302,474
l,193,731
956.638
525.023
809.738
611.317
2.S79.2S9
292.418
3.524,l ' O
101.869
$14.896.607
s 11.10
13.60
11.70
I I.SS
10.70
1070
9.3S
I I.SS
6 IS
6 IS
S7,613,S28
3,962.080
4.850.216
1.349,808
1,644,542
1,177,496
S,)34.204
3Sl,800
8.644.416
Jl 4AS7
SJS.242.547
F1scal year 2021 1oial dirttt rtk SI O 09
COt1t1nucd ~"pa~t
Table S
Fiscal
Ycu
Class of
Propen;i:
Value of
Net Taxable
8u11d!!J!
Building
Tax Ra1es
Per SIOOO
Value: of
Net Tanblc
I.and
Land
Ta• Ratn
Pct SIOOO
Velue of
Net Tuabk
Real Propcny
°' V>
2022
2023
Sourtt
Res1dcnt1al Toa I S3.-444,705 s 11.10 S4,l7S.739
Resodcnt.al Tiet II S2.823.7SS 13.60 Sl.148,116
Apanmenl 4.275.078 11.70 968.410
Hoeel and Rcson 697,67S ll.5S 338.244
Comme"'oal 924,668 10.70 8.S8,704
lndustnal 605.890 10.70 623,6'4
Agncullural & N.Oll\C forest 2.905.750 93S 2,640.242
C~atlOll 62,730 11.55 279.lSI
ltomcownm 5,825.414 6.15 3.800.096
AITorcbbk Rens.I Houson& 249,233 6.15 117,304
S21.814.898 SIS,1 49,750
Fos.:al year 2022 to«al dirttl rate S9.98
Resident.al Tier I S4.641.689 s 11.10 S4.228.0S4
Rcsidcn11al Tier II S2,88 l,507 13.60 $2,426.749
Apanmcnl 4,977,813 11.70 1,083,466
ltoiel and Reson 1.111.494 11.55 402.684
Comm~rcial 1,344.598 10.70 951.805
lndusirinl 867,873 10.70 722,473
A8flculturol & Native Forest 3.548.897 9.35 3,121,JSO
Conservation 73,53 I 11.55 301,273
ltomcowncrs 6.645,201 6. IS 4,020,380
Affordllblc Rental I lousing 297,91 6 6.15 140.867
$26,390,519 SI 7.399.101
Fiscal year 2023 to<al dirccl rate SI0.12
County ofliawa1'i, ~panmcnt of Finance. Real Property Tax Division
S II 10
$1).60
II 70
I I.SS
1070
1070
9.35
II.SS
6 IS
6 IS
s 11.10 s 13.60
11.70
I I.SS
10.70
10.70
9.35
II .SS
6.15
6.15
$7.&20.444
$3,971.871
sS.243,4118
1.035,919
1.783.Jn
l.229..SJ4
S.54S.992
341.981
9.625..SIO
366~37
S36,9641648
$8.869.743
SS,308,256
$6,061.279 .
l,Sl 4,l 78
2.296,403
1.590.346
6.670,247
374.804
10,665.581
438,783
$43,789.620
NOTES· Asses5N v1lue is at I00% ofmarltd value.
Propctt)' os rcasses~annually.
The Count)' Councol seis the s.x mes annually.
Thac m no~crlappong propM) tax mes in !he County ofHawaii.
Unaudited • S« acromp111~1n1 independent audikld rcpcxt.
Table 6
COUNTY OF HAWAl'I
Principal Taxpayers
June 30. 2023 and 201 4
Fiscal Year 2023 Fiscal Year 2014
Percentage Percentage
2022 ofTotal 2013 ofT01al
Assessed Assessed Assessed Assessed
Taxpayer ~.u V}1Juation Rank ~ Ynluatjoo B.uu!I Yaluatjoo
Hi Hon Resorts Corp. Timeshare $ 351,322,100 I 0.8% $ 148,089,500 4 0.6%
Kohanaiki Shores LLC Developer 281,381,900 3 0.6% 65,032,900 8 0.3%
Mauna Kca.'Mopuna Bc.ach Corps. O..velopcr/Ho1el 172,664,900 3 0.79/r,
OHL Mahi Opco LLC Developer/Ho1el 22 1,26 1,400 4 0.5%
Hualalai lnves1ors LLC Developer/Hotel 205.243 ,600 5 0.5% 185,883,000 2 0.8%
Hillon Land lnves11nct11 I LLC Hotel 170,021,500 6 0.4% 201 ,844,300 0.9%
MAPS Orchid Hotel LLC Ho1el 142,409,800 7 0.3%
Hotel/Condo/
Kona Coast Res0<1 Lid Time Share 84,282,400 10 0.2%
SMG I Moiel Waikoloa LLC Motel 102,291,200 8 0.2%
Mauna Kea Reson LLC Developer/Motel 288.823.800 2 0.7%
AG·\VP llapuna Towct ()wncc, I.LC Developer 88,388,600 9 0.2%
!Vfauna Lani Resort Inc. Developer/Hotel 93,320,500 6 0.4%
WB KD Acquisition LLC Developer 66,357,900 7 0.3%
Orchid 09 LLC Hotel 112,853,500 5 0.5%
Ho Re1ail Propcr1 ies Developer 59,844,900 10 0.3%
Tnrget Corp<>ra&ion Re1ailer 64,456,100 9 0.3%
$1,935,426,300 4.4% $ 1,170,347,500 5.1%
Note: Gross valuation al January I, 2022: $43,789,619,600
Gross valuation at January I, 2013: $23,542,277,844
No1es:
Source: County of Ma\vai'i, Depann1ent of Finance, Real Propeny Tax Division
Unaudi1ed • see accompanying independen1 auditors' repon.
-166
Table 7
COUNTY OF HAWAl'I
Property Tax Levies and Collections
Last Ten Fiscal Years
•outstanding
•Total Oelinq~n•
•current •current •Percmt •Delinquent •Total Collections as •Outstanding Taxes as
Fisal Tax Tax ofLevy Tax Tax Percen1 of Delinquent Pc~mof
Yru ~ ~~ Collected Collections Collections Currcn1 Levy am Cuqent Levy
2014 217,269.825 211,711.407 97% 5,118,743 2 t 6.830.1 so 100-lo 439.675 0%
2015 233,255.9 19 227,211,277 97% 5.475,818 232.687,09S 100% 568.824 0%
20 16 244,067.2 10 237,882,513 97% 5,539,553 243,422,066 100°/o 645.144 0%
2017 266,398.351 259.074,405 97% 6,621,669 26S,69Q,074 100% 702.277 0%_,°' 2018 302,488.275 292.626,959 97% 8.673,814 301,300,773 100-/o 1.187.502 0%
2019 316,4 II,763 308,509,000 98% 6,527,864 3 I 5,036,864 100% 1,374,899 0%
2020 329,582.761 322, 150.258 98% 4,886,606 327,036,864 99% 2,545,897 1%
202 1 355,548,695 346,368,351 97% 6,448,129 352,816,480 99"/u 2,732,215 1%
2022 368,784,27 1 360,624,384 98% 3,935,115 364,SS9,499 99% 4,224.772 1%
2023 443,039.998 432.725,590 98% 432,725,590 98% 10,314,408 2%
• Amounts reflect sob.sequent adju:stn1cnts
Source: Coonty orttawai'i, Otportmcn1 offinam:e, Real Property Tax Divis;oo
Unaudi1~ -set accompanying indcpcndcru audi1ors' rcpon.
Table 8
COUNTY OF HAWAl'I
Ratios of Outstanding Dtb1 by Typ«
La.s:t Ten Fiscal Ye-ats
Business·Type
Govcmrocncal Activities Activities Total Prim~Government
General State TOOIJ Pc:rcentage
fiscal ObliJ!'l11on Revolving Bonds/No1es-Pnmal)' of Personal Per
Year Bonds(c) Fund Loans Lease< Payable Govcmmcn1 (a) Income (b) CapiUl (bl
2014 318.138,520 22,928.638 2,308.241 1,208,300 344,583,699 5.0'JO/o 1,774
20 15 297,957,249 21.552.213 2,981,709 1. 111.392 323.602.563 4.S8~o 1,647
2016 413,986,312 27,463,251 4,916,178 1,014,0 14 447.379,755 5.87'/o 2.254
2017 391 ,580,924 32.625,277 6,565,580 924.649 431,696,430 5.36% 2,154
2018 471.743,088 35,647.870 8.112.577 807,005 516,310,540 6.05% 2,569
°' 00 2019 440,439.527 39,693,594 11.579.332 697.777 492.41 0.230 S.7~/o 2.444
2020 412,438,548 37,367,712 10,771,109 582.961 461,160.330 4.90% 2,268
2021 466,706,640 50.37•,202 10,749,906 100.691 527,931,439 5.20% 2,602
2022 433,39 1.228 46.791,175 2•.322.453 41.501 504.546.357 4.94o/o 2,446
2023 539,288,025 44,185,361 25,411,676 8.090 608,893, 152 NIA NIA
NOTES:
(a) Jnc.ludcs governmental activities and bu.sinesS.(}'pt: activities.
(l>) See Table 11 for P<r50nal income and population data.
(c) Amounts have been changed fo:--consistcn(y and includ<.-s bond an1idpation notes.
Details r~garding lhe County's otnstanding de'" C"an be found in the ootes 10 1hc basic CinanciaJ statements.
Table9
COUNTY OF HAWAl' l
Ratios of General Bonded Debt Outstand ing
Last Ten Fiscal Years
Debt Percent of
Applicable to Net Taxable
Fiscal Legal Debt Propeny Per
Year Margin (a) Value (b) Capita (c)
2014 298, 709,020 l.3% 1,538
2015 312,632,049 1.2% 1,592
2016 362,963, 113 1.4% 1,829
2017 405,488,342 t.4% 2,024
2018 4 t 4,446,063 t.4% 2,062
2019 425, 153,552 1.3% 2,110
2020 315,676,941 0.9% 2,047
2021 416,225,798 l.2% 2,05 1
2022 385,067,012 1.0% 1,866
2023 451,617,291 1.0% NIA
NOTES:
(a) See Table I 0 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable propeny values.
(c) See Table 11 for population data.
Details regarding the County's outstanding debt can be found in the
notes to the basic financial statements.
Unaudited · see accompanying independent auditors' rep0rt.
-169
Tabk: 10
COUNTY OF HAWAl'I
Legal ~bl ~l"Rin lafonna<io•
Last Tm Fisal Years
(J\-in lhous>nds)
2014 201S 2016 2017 2011 2019 2020 2021 2022 2023
Dcb< liill1H1) U.SJ l~I U .779.70S n.9Sl.927 s..4.301.083 S4561.49S SUOJ.199 U .016.S21 U .216.312 s S.S« .697 s 6.568.« 3
Dd>c zppltabk 10 linut 291.709 312.6)2 362.'J6J 40S.4U 4 14.446 42S.IS4 31S.677 416 226 JIS.067 4Sl.617
Upidd!I miltgtn (bl SJ.232.632 SH67.076 S3.S9S.964 SlJ9S.S9S S4.IS4.052 S4.371.7H S4.700.l44 SU70.IS6 S S.IS9.630 s 6.116.116
Debt "f>Pliablc to 1hc Imm
os a pcrca11..., ordd!l limt1 g 46"· 3 27' 9 1~ 9.43% 9.07% I.IS"• 6 29'· 787.. 6 94•. 6.88'<.
......
0 NOTES:
(a) Suite fin.,,.,. SlalUICS limit th• Coun1y'1 uutslandlna acncral debt lo no more 1han IS peroenlo(lhe""' ...,.,,...d v•luc orprop<:ny. s.... Tobk sfor ncl ..,.,,.d value or PNl"'"Y·
(b) The lcgol dcbl mnrgln Is 1hc Coun1)"s ovoll•blc borro" in& authority under slilie finance sia1u1es and is cal<lll•ied by subtruc:ling 1hc nc1 dcl:>1oppllcoblc 10 1hc lcjj.DI debt
limi1 from 1hc k:gal dcb4 llmil,
t..<gal Debi M11a1n C1lculallon for focal Ycv 2023
$43.789.620
Deb< hmn 1u•. orne1 .....scc1 ' lluc) s 6.s61.« 3
Debi l1'Phc1ble IO hmfl 451.617
Lcpldd>c.,.,.m s 6.116.826
COUNTY OF HAWAl'l
Table 11
Demographic and Economic Stat istics
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30.
• Resident
Population
as ofJuly l
•Personal
Income
(thousands
ofdollars)
*Per
Capita
Personal
Income
School
Enrollment
Unemployment
Rate
2013
2014
2015
2016
201 7
2018
2019
2020
2021
2022
190,821
194,190
196,428
198,449
200,381
201,509
202,165
203,340
202,906
206,315
$ 6,544,583
$ 6,771,329
$ 7,067,347
$ 7,618,924
$ 8,053,011
$ 8,509,388
$ 8,602,392
$ 9,410,824
$10,152,965
$ l 0,207,652
$ 34,297
$ 34,870
$ 35,979
$ 38,392
$ 40, 188
$ 42,228
$ 42,55 l
$ 46,281
$ 50,038
$ 49,476
33,948
29,985
29,865
29,753
29,666
29,601
29,609
29,217
28,866
28,430
6.6%
6.5%
5.2%
4.7%
3.5%
3. 7%
4.2%
13.8%
6.4%
4.4%
• Amounts reOect subsequent adjustments
Source: State of Hawai'i, Department of Business, Economic Development and Tourism,
https://dbedt.hawaii.gov/economic/databook/db202 l
Stare ofHawai ·;, Department ofBusiness. &:0110111/c Developme/1/ and Tourism,
https://dbedt.hawaii.gov/economic/unemployment-statistics
Bureau ofEconomic Analysis, hnps://apps.bea.gov/itable/iTable.cfm
Unaudited -see accompanying independent auditors' report.
• 171
Table 12
COUNTY OF HAWAl'I
Principal Employers, County or Hawaii
June 30, 2023 and 2014
2023 2014
Emoloyer Employees Rank
Percen1age
ofToral County
Employment Employees Rank
Percentage
ofT01al County
Employmen1
S1a1e of Hawai'i
County ofHawai'i
Mauna Kea Beach Holel
Uni1ed S1aies Governmenl
KTA Super S1ores
Kamehameha Schools Hawai'i Island
The Fainnont Orchid, Hawai·i
Goodwill Hawaii Island
Robem Hawaii, Inc (Big Island)
Queen's North Hawa1'1 C'onlJnuntty Hosptrnl
Four Seasons Resort Hualalai
Hillon Waikoloa Village
Mauna Lani Resort (Operations), Inc.
Targel S1ores
Wal-Mart
Total
16,600
2,800
1.357
1,300
900
686
588
436
343
329
25,339
I
2
3
4
5
6
7
8
9
10
23.0%
3.9%
1.9%
1.8%
1.2%
10%
0.8%
0.6%
0.5%
0.5%
36.1%
(a)
8,229
2,657
800
1.430
767
640
910
490
660
16,583
I
2
5
3
7
9
6
4
10
8
(a)
10.2%
3.3%
1.0%
1.8%
1.0%
0.8%
1.1%
0.6%
0.8%
2 1.0%
Total employee coun1 72,043 80,700
NOTES:
(a) Exac1 employee counl is unavailable
Source: Couniy of Hawai'i, Department of Research and Developmem
Stale of Mawai·i. Ha,i.·ai'i V..1orktbrcc lnfonc.:t: https:l/''"''"'.hh\'i.orglvosnet/gsipub/dl.)CU1ncnt\·ic,v.a:spx
Uni1cd Stale Depurt1ncnt Qf Labor, Oureau of Labor Statistics: hups://W\\1\v.bls.gov/n.~g.ions/\vesv'nc\\·s4rcleasc/countycmploymc1uantJ
'vagcs_ha'"'aii.htm
Pacific Ousincss News. "The List. Employers. Hawaii Island", July I.2022. hllps:f/wmv.bizjournals.comlpacilic/subscriber
only/2022107/0 I /cmploycrs-hnwaii-islnnd.html
-172
!able IJ
CO\JNTY OF HAWAl"I
£msm
2014 201S 2016 2017' 2011' 2019• 2021 lO?l
...., .....
Gc.r.i...-
e-.yc-~ c.-,.cic.t.
L<plaor>e Aud
\ti)<><
c..,...._c-' r......,
llwNoR.....,ca
Ptaa.n191
lt<1<WC11 1t ll<•clot>m<At
1.r...,,.,... r«11no1oo
hbhc Worb Adm1n & 8u1khn1
Pu1>11<s.rciy
Police
Fore
Liquor Con11ol
CMI o.rcnr<
Pmsccu1N1a Attorney
1llc,hwitys ind S1rct1J
MasJ Tr1n1i1
Trame and IlisJ1wt)'I
S1ni11don·
Admlini1uw1'on
Sc-.>cr
Vehicle D"posal
SohdWaslC
ltcalllt.. r<hit•IKlft and W("ltire
11.......
AJJI>&
C\ilnn..., R«Kll'°"
900
"""°soo
II 7S
2100
IJ.4 91
2H 9
"00
11 •9
2200
16249
S67 lJ
429 '7
14 00
7.00
98 97
11.00
173.41
19 '9
4449
I 00
10) so
000
12 00
JU14
900
S) 16
soo
19'7
2500
l)U 9
25 •9
SO.GO'" ...
1900
164 21
wso
4l6.S7
1300
7.00
IOS.97
11.00
17$.41
19 •9
H.49
2 DO
IOJ.00
46 00
900
362.40
9.00
S456
soo
IHI
llOO
Ill •9
25•9
SJOO
1600
1900
16749
S64 7S
4))07
1600
7.00
108 97
12.00
17S.48
17.98
4M9
2.00
104.00
46.00
1300
356 8<
900
S416
S.00
16.99
26.00
ISl.00
ZH9
56.00
14 49
2UJO
172 49
snoo
434.58
17.00
7.00
103.97
10.00
1n.4g
19.98
45.49
2 00
102.00
4700
IS.00
369.29
1 00
SI 16
4 00
16'19
?600
ISl.49
23<9
SlOO
1200
20.00
167 7S
sso so
42$.57
17.00
7.00
111.49
12.00
187.48
18.91
48 49
l DO
10).00
4300
1600
372.ll
900
l?.61
soo
11 7•
?600
IS?.46
2U O
6000
I• 00
II 00
110.•9
S5J 00
44 107
15.SO
7.00
11 1.00
13.00
119.48
1900
4149
2 00
IOI 00
4100
14.SO
J71 so
900
S2'6 soo
1700
2500
llJOO
2JOO
6600
14 00
1700
l9S 00
SS9 2S
41") S7
IS 00
S,00
102 49
1600
118 00
IHI
jH7
2 ••
11000
SOCIO
IS SO
.rs"
•oo
SJ 16
4 00
11 75
2600
ISOOO
HOO
1l 00
1'49
1100
ISi 00
ssooo
0153
1600
10 00
9948
16 00
20248
1700
so ••
JOO
10900
sooo
IS 00
)4679
900
4UI
• OO
11 75
2600
l•HI
2100
1'100
1700
1700
14900
,~, 7$
03 SI
18 so
1000
94 48
IS Oil
204 0
1900
5697
I 00
11100
S• 00
IS 00
1'97$
900
SI 96
soo
19SO
2700
llO•I
2600
72 00
, . 00
21 00
1'2 •I
S<0.$0
• S472
IS.SO
9.00
101.48
17.40
214.48
1900
S9.49
J 00
10100
SI SS
ISOO
J90.$2
T...I 2 loO • 7 2.• 22 21 2 • 2509
•concnm ..-socot*S
2.4'9>! 2.•56.72 2-49171 LJ70 t9 1 41922 BSJ IS 2SH06
s..rr. l·-ot1i...... ~"'~-
l--...~. t« ~'*"'f.it..""l!'f ...l"t'flllk'M ~tq:io"'I
Table 14
COUNTYOFHAWAl'I
Operating lndic.ators by Fun<'tion
Lasl Ten Fiscal Years
funt1jon
2014 2015 2016 20 17 2018 2019 2020 2021 2022 2023
..... '"
Public Safcl)':
Potice:
DUI arrests
Traffic citations issued
Fire:
fire teSJ>OO$CS
En~rgency medical/rcscu'! responses
lnspec1ioos -Oc~upancy/Fife Pro1cc1ivc Equipment
Sanitation:
Refuse d_isposed (ton:s per year)
Highways and Streets:
ln·house street tesurfacing (miles)
P.arks and Recreation:
Pavilion permits i.iSued
Camping pennits i-ssued
Rounds ofgolf
i'..oo attendance
Transit
Bus passcllll=
Public Works:
Building permits Jssued
Electrical pc:rmias issued
Plumbing. permits issued
Sign pennits issued
1,351
63.921
671
15.968
1.687
166.890
17
l.108
4.261
71.568
220.323
920.280
4.797
5,313
1.664
57
1.035
60,016
700
18.750
1,262
(79.033
6
2,482
6.207
65.093
214.249
944.738
5.494
5,645
1.897
44
1.113
67,289
700
17.834
1.000
188.758
21
2.552
6.688
57.325
251.436
874,424
4.833
4,232
1.819
47
1.083
69.611
731
17.178
1.298
195.162
24
2.513
7.345
58.874
264.41 5
766.472
3.214
3.509
1.801
39
1,170
68,535
811
18.005
951
224.196
13
2.417
8.394
58.504
269.453
742.250
3.672
4.077
1,914
45
1.081
37.305
832
17.884
597
223.823
36
1,95 1
6.910
57.488
283.807
511,412
4.009
3.766
1.891
Sl
952
. 34,454
881
18.048
699
207,172
0
1.259
5.769
48,704
208,384
416.747
3,245
3.919
1.998
35
1.170
34,892
1,0IO
18.080
802
196.630
25
778
1.133
67,831
0
257,489
3.555
4.420
2.298
36
1,029
70.718
1,066
20,999
976
203.872
16
1.432
8.011
62.561
362.000
473.073
4,898
514
280
31
955
77.308
1,073
22,555
730
204.924
27
2,6.19
9,472
60.805
357,000
859.724
6,616
16
9 so
Source: County of Ha,vai·i, Individual Ocpartmc-n1s
UnJuditC'd -sec eccom.p:lnying independent auditors' rcpon
Table IS
COUNTYOF HAWAl'I
Capllal A.Uc-I Statistks by FutKtionJ
fuJK1ion
2014 2015 2016 2017 2018 2019 2020 2021 2023
..... V>
Pcl>h< Safety
Pohc:e
Sta110l1$
Subsiauons
Fire staooos
Highways and SlltttS
Cooniy strcets (miles)
Sm:eOi~ts
Parks and Rccrca1ion
Pasks
Gyms and recrcalJon centers
Sa.'\ita1ion:
Sanitary se\vcrs (m1k!s)
•Glsdu•INS< " ' '"'"btJJ+M+"f FY )O()I
8
8
21
961
I0.16S
I'S
62
105'
8
8
21
956
10.366
146
62
10s ·
8
10
21
9S6
10.655
147
62
10s•
8
10
21
991
10,771
151
65
105°
8
10
21
990
11 ,310
ISi
65
10s•
7
II
20
J.000
11,33 1
ISi
65
10s•
7
7
20
1.002
11 ,472
151
6S
106'
7
7
20
1.002
11,561
150
64
106'
7
8
20
1,010
11 ,5 13
150
64
106'
7
8
20
1,016
I l.S74
150
64
120'
Sour« · CountyorHa\\'a1'1. Otpurt.mcn1 ol'Rmarch and Dcvcl01>f11cnt
Unaudncd ·sec accompoinym,g 1odl:pc:ndcnt 1ud1'0fl' rcpon