HomeMy WebLinkAbout2024-COH - Annual Comprehensive Financial Report
County of Hawaiʻi
State of Hawaiʻi
Annual Comprehensive Financial Report
For the Fiscal Year
July 1, 2023 to June 30, 2024
COUNTY OF HAWAIʻI
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 8
Organization Chart 9
List of Elected Officials 10
List of Principal Officials 11
FINANCIAL SECTION
Report of Independent Auditors 13
Management's Discussion and Analysis (Unaudited)17
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 29
Statement of Activities 31
Fund Financial Statements:
Balance Sheet - Governmental Funds 33
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 34
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 35
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities 37
Statement of Net Position - Proprietary Funds 39
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds 40
Statement of Cash Flows - Proprietary Funds 41
Statement of Fiduciary Net Position - Fiduciary Funds 42
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 43
Notes to the Basic Financial Statements 44
Required Supplementary Information (Unaudited)
Schedule of Changes in the Net OPEB Liability and Related Ratios 108
Schedule of Contributions (OPEB)115
Notes to Required Supplementary Information as Required by
GASB Statement No. 75 116
Schedule of the County's and Department's Proportionate Share
of the Net Pension Liability (ERS)118
Schedule of the Employer Pension Contributions (ERS)119
FINANCIAL SECTION (Continued)
Page
Notes to Required Supplementary Information as Required by
GASB Statement No. 68 120
Schedule of Changes in Total Pension Liability (Bandsmen Pension)121
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis) - General Fund 123
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis) - Hawaii County Housing Agency 127
Notes to the Required Supplementary Information 128
Combining and Individual Nonmajor Fund Statements
and Budgetary Control Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds 130
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances - Nonmajor Governmental Funds 133
Combining Statement of Fiduciary Net Position - Custodial Funds 136
Combining Statement of Changes in Net Position - Custodial Funds 138
Combining Statement of Private Purpose Trust Net Position - Private Purpose Trusts 140
Combining Statement of Changes in Net Position - Private Purpose Trusts 141
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Budgetary Basis):
Highway Fund 142
Sewer Fund 143
Solid Waste Fund 144
Cemetery Fund 145
Parking Meter Fund 146
Vehicle Disposal Fund 147
Bikeway Fund 148
Workforce Innovation & Opportunity Act Fund 149
Golf Course Fund 150
Geothermal Relocation and Community Benefits Fund 151
Beautification Fund 152
General Excise Tax Fund 153
Park Dedication Fund 154
Short-term Vacation Rental Enforcement Fund 155
Geothermal Asset Fund 156
STATISTICAL SECTION
Table 1 - Net Position by Component 147
Table 2 - Changes in Net Position 158
Table 3 - Fund Balances, Governmental Funds 160
Table 4 - Changes in Fund Balance, Governmental Funds 161
Table 5 - Real Property Assessed Values by Classification and Tax Rates 162
Table 6 - Principal Taxpayers 166
STATISTICAL SECTION (Continued)
Page
Table 7 - Property Tax Levies and Collections 167
Table 8 - Ratios of Outstanding Debt by Type 168
Table 9 - Ratios of General Bonded Debt Outstanding 169
Table 10 - Legal Debt Margin Information 170
Table 11 - Demographic and Economic Statistics 171
Table 12 - Principal Employers, County of Hawaii 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
County of Hawai‘i
Finance Department
25 Aupuni Street, Suite 2103 • Hilo, Hawai‘i 96720
(808) 961-8234 • Fax (808) 961-8569
Hawai`i County is an Equal Opportunity Employer and Provider
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Diane Nakagawa
Director
Malia A. Kekai
Deputy Director
C. Kimo Alameda, Ph.D.
Mayor
William V. Brilhante Jr.
Managing Director
July 18, 2025
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 Report for the County of Hawai‘i
(County), State of Hawaiʻi, for the fiscal year July 1, 2023, to June 30, 2024.
This report was prepared by the County’s Department of Finance. The accuracy of the financial
statements and the completeness and fairness of their presentation are the responsibility of the
County government. We believe the enclosed data are complete and accurate in all material
respects and are reported in a manner designed to present fairly the financial position and results
of operations of the various funds of the County. All disclosures necessary to convey the
maximum understanding of the County's financial activities have been included. Management’s
discussion and analysis is also included to aid users of the financial statements.
This report presents the financial position of the County of Hawai‘i at June 30, 2024, and results
of operations for the fiscal year then ended. The report is divided into three sections:
• The Introductory Section includes this transmittal letter, a Certificate of Achievement for
Excellence in Financial Reporting, the County of Hawai‘i’s organization chart and lists of
elected and principal officials.
• The Financial Section contains management’s discussion and analysis, the basic financial
statements, related notes, other required supplementary information, the combining and
individual fund budgetary financial statements, and the independent auditors' report.
• The Statistical Section includes selected financial and demographic information, generally
presented on a multi-year basis.
This report includes all funds of the County of Hawai‘i, including its component unit, the
Department of Water Supply, established by the County Charter as a semi-autonomous body of
the County government. This component unit is included in the County's reporting entity because
of its financial relationship with the County.
The County provides a full range of municipal services. These include police and fire protection;
emergency medical care; public prosecutor; culture and recreation; sanitation; social services;
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water; planning and zoning; construction and maintenance of highways, streets and infrastructure;
real property assessment and tax collection; and general administrative services. However, the
County does not provide such other traditional services as public education, hospitals and courts.
These services are provided by the State government.
Hawai‘i island is 4,028 square miles in size, which is twice as large as the combined area of all the
other inhabited islands in the Hawaiian Archipelago. Since there is no other local or municipal
government within the County, there are no overlapping taxes and no overlapping debt. The
County has an elected mayor and a nine-member council.
Economic Condition and Outlook
The island of Hawai‘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. Kailua-Kona, on the west side of the island,
offers many natural attractions such as sport fishing, scuba diving and other water sports. The
South Kohala coast, just north of Kailua-Kona, is a major tourist destination with several luxury
resort developments, many with immaculately manicured golf courses surrounded by high-end
vacation homes.
The Big Island is served by two deep-water ports—one in Hilo and the other at Kawaihae on the
northwest corner of the island—and two international airports. The Hilo and Kona International
Airports each have 10,000-foot runways to accommodate transcontinental jets. The highway
system allows travelers to access the island’s east and west population centers from three
directions.
Over the past several years, the Big Island has transitioned from a tourism-based economy to a
more diversified economy by capitalizing on its many unique features. For example, the elevation
and isolation of the Big Island’s mountains have helped to make Mauna Kea and Mauna Loa the
world’s premier locations for astronomical observatories and atmospheric research, respectively.
In addition, deep ocean waters just off the island’s coast provide prime research, aquaculture, and
water bottling conditions, and the waters off the Kona Coast are world renowned for sport fishing
and other water sports. The island’s great natural beauty also has helped to foster a vibrant tourist
industry.
As a result, the Big Island is buffered to some extent when any one industry lags. According to
the State of Hawai‘i Department of Business, Economic Development & Tourism (DBEDT), the
unemployment rate for the County in calendar year 2024 was recorded at 3.2 percent, unchanged
from the calendar year 2023 rate.
Tourism has always been one of the major industries on the island. For the twelve-month period
ending December 2024, preliminary data shows that total visitor arrivals reached 1,729,027,
compared to 1,779,063 in 2023. This represents a 2.8% decrease in visitor arrivals from the prior
year.
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In addition to the mild climate and natural beauty it shares 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.
Major Initiatives
For the Year
Public Safety – Fire Department successfully implemented a new Fire Records Management and
Incident Reporting System using the web-based EPR Fireworks software. This system enables
remote access from any location without requiring connection to the County Network, enhancing
flexibility and efficiency.
Fire Department progressed with the Apparatus Replacement Program, procuring two Class A
pumpers and one Hazardous Materials Response Apparatus.
The Fire Department’s Emergency Medical Services Branch remains actively engaged in Fentanyl
education throughout our community. The division supported island-wide Narcan distribution and
education, along with delivering numerous community presentations.
The Fire Prevention branch hosted the 1st Annual Smoke ‘N Fire 5K Race and Family Fun Run
on October 1, 2023, at the University of Hawai’i at Hilo, with approximately 500 participants and
1,000 community members. The event successfully promoted health and fire prevention, thanks to
the efforts of dedicated volunteers. Proceeds from the run were donated to UH Foundation and
the Kapiʻolani Medical Center for Women and Children.
Public Works – Over the past fiscal year the Department of Public Works (DPW) completed major
projects in our community including:
• Completed $15.3 million Kilāuea Avenue/Keawe Street Rehabilitation – Ponahawai to
Waianuenue Avenue Project. This was a State Transportation Improvement Program
(STIP) Project. The project included paving and rehabilitating existing roadways,
sidewalks, and adding ADA ramps as well as upgrades of existing water and sewer
lines.
• Completed $2 million Kolekole Stream Bridge project for 2018 Hurricane Lane
Damage Repairs.
• Completed $31 million Hawaii County Emergency Call Center. Project included a new
17,127 square-foot essential facility for Police and Fire dispatch along with parking,
landscaping, back-up generators, a communication tower, and redundant cooling
systems for a county computing center.
• Completed $4 million reconstruction of Pauahi Street Bridge. This project included
structural improvements and modernizing and improving safety.
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Culture and Recreation – The Parks and Recreation Department completed multiple ADA
Transition Plan projects including Richardson’s Ocean Park and Kolekole Gulch Park accessibility
improvement projects.
For the Future
Public Safety – The Police Department will be including English 100 classes for incoming recruits
in partnership with the University of Hawai`i.
Looking ahead, the Fire Department is poised to embark on a major initiative, focusing on the
community risk assessment, standards of cover, strategic planning, and master planning, ensuring
a more efficient operation and safer future for the community.
Public Works - DPW is currently working on these major projects:
• The $26 million rehabilitation of Waikoloa Road from Māmalahoa Highway to Queen
Ka‘ahumanu Highway. Project includes resurfacing over 11 miles of multi-lanes of
pavement, improving shoulders, addition of bike lanes, and overall safety
improvements. Anticipated completion is June 2025. This is a STIP project.
• The $16 million Waiākea/Palai Stream Drainage improvements. This project is a
partnership with US Army Corps of Engineers and includes construction of three flood
control features: a ditch/levee floodwall with detention basin, a detention basin, and a
diversion structure.
• The $82 million Kīlauea Lava Recovery repairs, including Pohoiki Road and Highway
137, to reconstruct 13 miles of roadway surfaces destroyed by the May 2018 eruption
of Kīlauea Volcano. DPW also is partnering with the Department of Water Supply to
install 9 miles of waterline also damaged during the lava flow event. The project will
take 2.5 years to complete and is a project funded by the Federal Emergency
Management Agency (FEMA).
• Working on design of safety repairs for Waipio Valley Road, including slope
stabilization, road surface repairs, and drainage improvements. Anticipated costs are
$10 million and construction work to begin in 2025.
Culture and Recreation – The Parks and Recreation Department will continue efforts to complete
the remaining projects of the ADA transition plan and other scheduled repairs and improvements
projects to park facilities.
The following design and construction projects to begin in 2025 are Miloli‘i Beach Park,
Kealakehe Regional Park Phase I, Clarence Lum Won Park, Kohanaiki Beach Park, Na‘alehu Park
Ballfield, Pahala Ballfield, Kekuaokalani Gymnasium, Ho‘olulu Complex, Honoka‘a Park, and
Hawaiian Paradise Park Phase I.
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Other Financial Information
Internal Control
The County management is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the County are protected from loss, theft or misuse
and to ensure that adequate accounting data is compiled to allow for preparation of financial
statements in conformity with generally accepted accounting principles. The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives are
met. The concept of reasonable assurance recognizes that (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
Budgetary Control
The County maintains budgetary controls to ensure that legal provisions of the annual budget are
complied with and that those expenditures do not exceed budgeted amounts.
Activities of the general fund and special revenue funds are included in the annual appropriated
operating budget. Project-length financial plans are adopted for the capital projects fund.
Budgetary control is established at the department level.
Formal budgetary integration is employed as a management control device for the general fund,
special revenue funds, and the capital projects fund. Budgetary control for the debt service fund
is achieved through general obligation bond indenture provisions.
The basis of accounting used for the budgets of the general and special revenue funds differs from
generally accepted accounting principles. Intergovernmental revenues are recognized when
awarded by the granting agency, encumbrances and unexpended allotments are treated as
expenditures for purposes of determining legal compliance with the annual budget, leases, and
accounts payable are not accrued.
The County also maintains an encumbrance accounting system as one technique of accomplishing
budgetary control. Encumbrances outstanding at fiscal year end are included in the various fund
balance categories based on whether the resources are restricted, committed or assigned and do
not constitute expenditures or liabilities because they will be honored during the following year.
As demonstrated by the statements and schedules included in the financial section of this report,
the County continues to meet its responsibility for sound financial management.
Significant Accounting Policies
The County has implemented Governmental Accounting Standards Board Statement No. 14, The
Financial Reporting Entity (GASB Statement No. 14), Statement No. 39, Determining Whether
Certain Organizations Are Component Units (GASB Statement No. 39) and Statement No. 61,
The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14 and 34
(GASB Statement No. 61). All organizations, activities or functions that meet the criteria in GASB
Statement No. 14, No. 39 and No. 61 for inclusion in the reporting entity are included in the
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County’s basic financial statements. For further discussion on other significant accounting
policies, refer to the notes to the basic financial statements.
Financial Highlights
Governmental activities increased the County’s net position by $194.5 million, which represented
almost the entire total increase in net position of the County.
There was a $73.4 million (-7.7%) decrease in revenues from governmental activities, due to the
following factors. The County experienced a $36.8 million decrease in revenues from operating
grants and contributions and a $110.0 million decrease in capital grants and contributions which
were partially offset with an increase in real property taxes of $42.5 million and investment
earnings of $16.3 million. The increase in real property tax revenues was a direct reflection of the
total increase of $4.0 billion in assessed value of the net taxable real property, with the majority of
the increase stemming from the category of taxable land ($2.4 billion).
Overall expenses from governmental activities decreased by $13.0 million (-1.9%) from the
previous year, which was a result of the County experiencing a $41.7 million decrease in
expenditures related to Highways and streets and $32.1 million related to Health, education and
welfare expenditures due to unspent appropriations as well as lower pension, health and post
employment benefit expenses. These decreases were offset by an increase of $24.2 million in
General government expenditures, including Public safety and Sanitation spending which
increased by $28.5 million and $7.8 million from the prior year end, respectively.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants. Accuity,
LLP was selected in accordance with the County Charter and the procurement provisions of the
Hawaii Revised Statutes (HRS) and Hawaii Administrative Rules (HAR) to perform the audit.
Employee Union Contracts
Hawai‘i County’s civil service employees are members of eight different bargaining units, of
which all contracts are set to expire on June 30, 2025.
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Hawaii,
Hawaii
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
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County of Hawaii
Organization Chart
County Electorate
Mayor
Office of Management:
Managing Director
Departments under Agencies under Departments under
direct supervision of the direct supervision of the commissions and
Managing Director: Managing Director: administrative supervision
of the Mayor:
Corporation Counsel Civil Defense Human Resources
Finance Office of Aging Police
Planning Mass Transit Liquor Control
Environmental Management Office of Housing & Fire
Research & Development Community Development Water Supply
Public Works Animal Control & (semi-autonomous)
Parks & Recreation Protection Agency
Information Technology Office of Sustainability,
Climate, Equity & Resilience
County
County Council Prosecuting Attorney
Clerk Auditor
County
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County of Hawaii
Elected Officials
June 30, 2024
Administrative Officers (Term: 2020-2024)
Mitchell Roth (12-02-24) Mayor
Kelden Waltjen Prosecuting Attorney
County Council (Term: 2022-2024)
Heather L. Kimball Chair
Holeka Goro Inaba Vice Chair
Cindy Evans Member
Michelle M. Galimba Member
Jenn Kagiwada Member
Matt Kaneali’i-Kleinfelder Member
Ashley L. Kierkiewicz Member
Susan L. K. Lee Loy Member
Rebecca Villegas Member
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Principal Officials
June 30, 2024
County Clerk Jon Henricks
County Auditor Tyler Benner
Managing Director Deanna Sako
Deputy Managing Director Bobby Command
Corporation Counsel Elizabeth Strance
Director of Finance Diane Nakagawa
Planning Director Zendo Kern
Director of Personnel Sommer Tokihiro
Director of Research and Development Douglass Adams
Chief of Police Benjamin Moszkowicz
Fire Chief Kazuo Todd
Director of Public Works Steven Pause
Director of Environmental Management Ramzi Mansour
Parks and Recreation Director Maurice Messina
Manager-Chief Engineer, Department of Water Supply Keith Okamoto
Civil Defense Administrator Talmadge Magno
Director of Liquor Control Gerald Takase
Mass Transit Administrator Victor Kandle
Executive on Aging Horace Farr
Administrator, Office of Housing and
Community Development Susan Kunz
Director of Information Technology Robert Ewbank
Administrator, Animal Control & Protection Agency Matthew Runnells
Administrator, Office of Sustainability,
Climate, Equity & Resilience Bethany Morris
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FINANCIAL SECTION
Report of Independent Auditors
To the Chair and Members of the County Council
County of Hawai‘i, State of Hawai‘i
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the Department of Water Supply (the “Department”), a discretely presented component unit of
the County of Hawai‘i, each major fund, and the aggregate remaining fund information of the County of
Hawai‘i, State of Hawai‘i (the “County”) as of and for the year ended June 30, 2024, and the related notes
to the financial statements, which collectively comprise the County’s basic financial statements as listed
in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of
the County of Hawai‘i, State of Hawai‘i as of June 30, 2024, and the respective changes in financial position
and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are further
described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report.
We are required to be independent of the County and to meet our other ethical responsibilities in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events considered in the aggregate, that raise substantial doubt about the County’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that, individually or
in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the County’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the County’s ability to continue as a going concern for a reasonable period
of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis (pages 17‒27), schedule of changes in the net OPEB liability and related ratios (pages
108‒114), schedule of contributions (OPEB) (page 115), schedule of the County’s and Department’s
proportionate share of the net pension liability (ERS) (page 118), schedule of the employer pension
contributions (ERS) (page 119), schedule of changes in total pension liability (Bandsmen Pension) (pages
121‒122), and budgetary comparison schedules for the General and Hawaii County Housing Agency Funds
(pages 123‒129), which are required supplementary information (“RSI”) that supplements the basic financial
statements. Such information is the responsibility of management and, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, which considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County of Hawai‘i, State of Hawai‘i’s basic financial statements. The combining statements
and individual fund schedules, as identified in the table of contents, are presented for the purpose of
additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining statements and individual fund schedules are fairly stated in all
material respects in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory and statistical sections but does not include the basic financial statements and
our auditors’ report thereon. Our opinion on the basic financial statements do not 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 July 18, 2025, on
our consideration of the County of Hawai‘i, State of Hawai‘i’s internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements,
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the County of Hawai‘i, State of Hawai‘i’s internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the County of Hawai‘i, State of Hawai‘i’s internal control over financial reporting
and compliance.
Honolulu, Hawai‘i
July 18, 2025
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MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)
This section of the County of Hawai‘i’s (the County) Annual Comprehensive Financial Report presents a
narrative overview and analysis of the financial activities of the County for the fiscal year ended June 30,
2024. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal.
FINANCIAL HIGHLIGHTS
•The assets and deferred outflows of resources of the County exceeded its liabilities and deferred inflows
of resources at the end of the fiscal year by $767.8 million (net position). This amount includes a
negative balance of $610.0 million in unrestricted net position, a positive increase of $131.4 million
from the prior year, which is explained in the sections below. This amount includes $2.5 billion of total
assets and $173.4 million of total deferred outflows of resources; $1.8 billion of total liabilities and
$121.1 million of total deferred inflows of resources.
•As of the end of fiscal year 2024, the County’s governmental funds reported combined ending fund
balances of $587.8 million, an increase of $2.2 million from the prior year. Approximately 42 percent
of this total amount, $247.2 million, is available for spending at the County’s discretion (unrestricted
fund balance).
•At the end of the current fiscal year, unrestricted fund balance for the general fund was $165.5 million,
or 31 percent of total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County’s basic financial
statements. The County’s basic financial statements comprise three components: (1) Government-wide
financial statements, (2) Fund financial statements, and (3) Notes to the basic financial statements. This
report also contains both required and other supplementary information in addition to the basic financial
statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
County’s finances, in a manner like a private-sector business.
The statement of net position presents information on all the County’s assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference reported as net position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial position
of the County is improving or deteriorating.
The statement of activities presents information showing how the County’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods, such as
revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and sick
leave.
Both government-wide financial statements distinguish functions of the County that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type
activities). The governmental activities of the County include public safety, highways and streets, health,
- 18 -
education and welfare, culture and recreation, sanitation and general government. The business-type
activities of the County include rental housing for senior citizens and families.
The government-wide financial statements include not only the County itself (known as the primary
government), but also the Department of Water Supply, a legally separate entity that the County is
financially accountable for. Financial information for this component unit is reported separately from the
financial information presented for the primary government itself.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related accounts which
are used to maintain control over resources that have been segregated for specific activities or objectives.
The County, like other state and local governments, uses fund accounting to ensure and demonstrate
compliance with finance-related legal requirements. All the funds of the County can be divided into the
following three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements – i.e., most of the
County’s basic services are reported in governmental funds. These statements, however, focus on (1)
how cash and other financial assets can readily be converted to available resources and (2) the balances
left at year-end that are available for spending. Such information may be useful in determining what
financial resources are available in the near future to finance the County’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government’s near-term financing
decisions. Both the governmental funds balance sheet and the governmental funds statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The County maintains several individual governmental funds organized according to their type
(general, special revenue, debt service, and capital projects). Information is presented separately in
the governmental funds balance sheet and in the governmental funds statement of revenues,
expenditures, and changes in fund balances for the general fund, capital projects fund, and the Hawaii
County Housing Agency, which are major funds. Data from the remaining governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of the non-major
governmental funds is provided in the form of combining statements elsewhere in this report.
The County adopts an annual appropriated budget for its general fund and special revenue funds. A
budgetary comparison statement has been provided for these funds to demonstrate compliance with
this budget. The budgetary comparison statement for the general fund and the Hawaii county housing
agency as well as nonmajor special revenue funds statements are presented elsewhere in this report.
Proprietary funds. Proprietary funds are generally used to account for services for which the County
charges outside customers. Proprietary funds provide the same type of information as shown in the
government-wide financial statements, only in more detail. The County maintains only one type of
proprietary funds, enterprise funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. The County uses enterprise funds to account for the operations
of the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project.
- 19 -
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the County. The private-purpose trusts and the custodial funds are reported under the fiduciary
funds. Since the resources of these funds are not available to support the County’s own programs,
they are not reflected in the government-wide financial statements. The accounting used for fiduciary
funds is much like that used for proprietary funds.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information, which is presented immediately following the notes to the basic
financial statements. The combining statements referred to earlier in connection with nonmajor
governmental funds and budgetary comparison schedules for the nonmajor special revenue funds are
presented immediately following the required supplementary information.
2024 2023 2024 2023 2024 2023
Current assets and other assets 880,428,742$ 810,571,818$ 1,275,592$ 1,200,831$ 881,704,334$ 811,772,649$
Capital assets 1,624,068,009 1,549,776,749 3,434,892 3,545,546 1,627,502,901 1,553,322,295
Total assets 2,504,496,751 2,360,348,567 4,710,484 4,746,377 2,509,207,235 2,365,094,944
Deferred Outflows
Of Resources:173,387,837 158,703,500 - - 173,387,837 158,703,500
Total Assets and Deferred
Outflows of Resources 2,677,884,588 2,519,052,067 4,710,484 4,746,377 2,682,595,072 2,523,798,444
Current liabilities 303,931,137 272,412,546 15,837 99,290 303,946,974 272,511,836
Non-current liabilities 1,489,781,439 1,490,007,859 - - 1,489,781,439 1,490,007,859
Total liabilities 1,793,712,576 1,762,420,405 15,837 99,290 1,793,728,413 1,762,519,695
Deferred Inflows
Of Resources:121,050,764 187,941,368 - - 121,050,764 187,941,368
Total Liabilities and
Deferred Inflows
Of Resources 1,914,763,340 1,950,361,773 15,837 99,290 1,914,779,177 1,950,461,063
Net investment in
capital assets 1,135,168,681 1,027,992,548 3,434,892 3,537,456 1,138,603,573 1,031,530,004
Restricted 239,236,262 283,205,882 - - 239,236,262 283,205,882
Unrestricted (611,283,695) (742,508,136) 1,259,755 1,109,631 (610,023,940) (741,398,505)
Total net position 763,121,248$ 568,690,294$ 4,694,647$ 4,647,087$ 767,815,895$ 573,337,381$
Liabilities:
Net position:
Governmental Activities Business-type Activities Total
Condensed Statements of Net Position
Government-wide Financial Analysis
June 30, 2024 and 2023
Primary Government
Assets
- 20 -
Analysis of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government’s financial position.
In the case of the County, assets and deferred outflows of resources exceeded liabilities and deferred inflows
of resources by $767.8 million at the close of the most recent fiscal year.
By far the largest portion of the County’s net position reflects its investment in capital assets (e.g., land,
buildings, infrastructure, and equipment) less any related debt used to acquire those assets that is still
outstanding. The County uses these capital assets to provide services to citizens; consequently, these assets
are not available for future spending. Although the County’s investment in its capital assets is reported net
of related debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the County’s net position represents resources that are subject to external
restrictions on how they may be used.
At the end of the current fiscal year, the County is able to report positive balances in two of its three
categories of net position, both for the government as a whole, as well as for its separate governmental
activities. All three categories of net position are positive for its business-type activities.
The County’s net position increased by $194.5 million from the prior year, which was a decrease of $60.3
million (-23.7%) from the increase that was experienced last fiscal year. The main reasons for the increase
from last year was due to an increase in Property taxes revenue of $42.5 million, increase investment
earnings of $16.3 million and decreases in expenses for highways and streets of $41.7 million and health,
education and welfare of $32.1 million.
Current liabilities increased by $31.5 million and non-current liabilities decreased by $0.2 million, for a
total increase from prior year of $31.3 million (1.8%). Although the County’s net pension liability increased
by $49.2 million, this was offset by a $66.8 million corresponding decrease in the projected deferred inflow
of resources related to pension and OPEB liability and not by an increase in expenditures. There was a
$6.8 million decrease in the net other post-employment benefit obligation. See further discussion of the
increase in long-term debt outstanding on page 26.
Further, there was an increase in net investment in capital assets of $107.1 million and the County’s net
capital assets increased by $74.2 million (4.8%) due to the large amount of capital improvement projects
done by the County during the current fiscal year and infrastructure related assets that were contributed.
See further discussion of the increase in capital assets on pages 25 – 26.
See further discussion regarding the changes in the County’s net position in the section labeled Analysis of
Changes in Net Position.
- 21 -
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County’s net position by $194.5 million,
which represented almost the entire total increase in net position of the County.
There was a $73.4 million (-7.7%) decrease in revenues from governmental activities, due to the following
factors. The County experienced a $36.8 million decrease in revenues from operating grants and
contributions and a $110.0 million decrease in capital grants and contributions which were partially offset
with an increase in real property taxes of $42.5 million and investment earnings of $16.3 million. The
increase in real property tax revenues was a direct reflection of the total increase of $4.0 billion in assessed
value of the net taxable real property, with the majority of the increase stemming from the category of
taxable land ($2.4 billion).
Overall expenses from governmental activities decreased by $13.0 million (-1.9%) from the previous year,
which was a result of the County experiencing a $41.7 million decrease in expenditures related to Highways
and streets and $32.1 million related to Health, education and welfare expenditures due to unspent
appropriations as well as lower pension, health and post employment benefit expenses. These decreases
were offset by an increase of $24.2 million in General government expenditures, including Public safety
and Sanitation spending which increased by $28.5 million and $7.8 million from the prior year end,
respectively.
2024 2023 2024 2023 2024 2023
Program revenues:
Charges for services 70,457,652$ 64,789,259$ 603,796$ 541,139$ 71,061,448$ 65,330,398$
Operating grants and contributions 104,918,731 141,690,010 396,005 331,282 105,314,736 142,021,292
Capital grants and contributions 29,943,511 139,937,282 - - 29,943,511 139,937,282
General revenue
Property taxes 488,372,488 445,888,368 - - 488,372,488 445,888,368
Other taxes 153,715,116 145,073,344 - - 153,715,116 145,073,344
Grants and contributions, unrestricted 849,934 812,837 - - 849,934 812,837
Investment earnings 27,412,752 11,101,680 16,822 2,104 27,429,574 11,103,784
Other 1,657,038 1,438,202 - - 1,657,038 1,438,202
Total revenues 877,327,222 950,730,982 1,016,623 874,525 878,343,845 951,605,507
General government 126,527,858 102,326,533 - - 126,527,858 102,326,533
Public safety 260,420,327 231,891,768 - - 260,420,327 231,891,768
Highways and streets 90,918,955 132,580,459 - - 90,918,955 132,580,459
Health, education and welfare 83,470,948 115,580,138 969,063 874,238 84,440,011 116,454,376
Culture and recreation 33,445,396 36,267,778 - - 33,445,396 36,267,778
Sanitation 71,863,269 64,095,411 - - 71,863,269 64,095,411
Interest on long-term debt 16,249,515 13,181,506 - - 16,249,515 13,181,506
Total expenses 682,896,268 695,923,593 969,063 874,238 683,865,331 696,797,831
Increase in net position
before transfers 194,430,954 254,807,389 47,560 287 194,478,514 254,807,676
Transfers - (129,548) - 129,548 - -
Change in net position 194,430,954 254,677,841 47,560 129,835 194,478,514 254,807,676
Net position at beginning of year 568,690,294 314,012,453 4,647,087 4,517,252 573,337,381 318,529,705
Net position at end of year 763,121,248$ 568,690,294$ 4,694,647$ 4,647,087$ 767,815,895$ 573,337,381$
Condensed Statements of Activities
For the Fiscal Years Ended
June 30, 2024 and 2023
Expenses:
Primary Government
Governmental Activities Business-type Activities Total
Revenues:
- 22 -
The charts below illustrate the County’s governmental expenses and revenues by function, and its revenues
by source. As shown, public safety is the largest function in expense (38%), followed by general
government (19%), and highways and streets (13%). General revenues such as property and other taxes
are not shown by program but are effectively used to support program activities countywide. For
governmental activities overall, without regard to programs, property taxes are the largest single source of
funds (56%), followed by other taxes (18%) and operating grants and contributions (12%).
Expenses and Program Revenues – Governmental Activities
Year Ended June 30, 2024
- 23 -
Revenue by Source – Governmental Activities
Year Ended June 30, 2024
Business-type activities. Business-type activities’ net position increased by approximately $48,000 and
had an extremely minimal impact on the increase in the County’s net position overall, which was
comparable to the prior year. Expenses for health, education and welfare account for all of the $969,063
expenses which represent an eleven percent increase from the prior year, with the largest increase occurring
in the area of utilities, which increased by 56 percent. Charges for services were $603,796 and operating
grants and contributions were $396,005, which were comparable to the prior year.
FINANCIAL ANALYSIS OF THE COUNTY’S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental funds. The focus of the County’s governmental funds is to provide information on near-
term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the
County’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of
a government’s net resources available for spending at the end of the fiscal year.
As of the end of fiscal year 2024, the County’s governmental funds reported combined ending fund balances
of $587.8 million, an increase of $2.2 million (0.4%) in comparison with prior year. Approximately 42
percent of this total amount ($247.2 million) constitutes unrestricted fund balance. The unrestricted portion
of the fund balance is comprised of (1) $90.0 million in committed fund balance, (2) $63.3 million in
assigned fund balance, and (3) $93.9 million in unassigned fund balance. The remainder of the fund balance
is divided between $9.2 million in nonspendable fund balance for inventory and prepaid items and $331.4
million in restricted fund balance. Approximately 75.5 percent of the total restricted fund balance is due to
restrictions relating to highways, streets and abandoned vehicles ($194.8 million) and debt service ($55.4
million). $69.8 million of the fund balance restricted for highways, streets and abandoned vehicles was due
to the General Excise Tax fund that was created in fiscal year 2019, which accounts for the general excise
tax surcharge that became effective in fiscal year 2019. The fund balance of the General Excise Tax Fund
- 24 -
decreased by $6.6 million due primarily to decreased sales activity throughout the County, which also
correlates to the lower levels of tourism.
The general fund is the chief operating fund of the County. At the end of the current fiscal year, unrestricted
fund balance of the general fund was $165.5 million, while total fund balance increased to $215.9 million.
As a measure of the general fund’s liquidity, it may be useful to compare both unrestricted fund balance
and total fund balance to total fund expenditures. Unrestricted fund balance represents 30.8 percent of total
general fund expenditures, while total fund balance represents 40 percent of that same amount.
The fund balance of the County’s general fund increased by $25.1 million during the current fiscal year as
compared to an increase of $79.2 million in the prior year. Key factors for this increase over last year’s are
as follows:
• Positive increases of $41.3 million (9%) in real property tax revenues and $16.4 million (137%) in
investment earnings.
• With the increase in multiple revenue sources, the County’s expenditures also increased from the prior
year by $75.5 million (16%). In addition to increases in salaries and wages and related benefits resulting
from bargaining unit changes, the County also incurred $6.6 million in increased capital outlay
spending and $70 million in Temporary Hazard Pay. Additional information can be found in note 12
and included in Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund
Balance.
The fund balance of the County’s capital projects fund decreased by $37.4 million during the current fiscal
year. The decrease is primarily due to the fact that there was $28.5 million to fully retire the bond
anticipation notes. Expenditures of the fund decreased by $7.9 million from the prior year. See discussion
regarding construction activity during the current year in the capital asset section below.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds have
combined total fund balances of $55.4 million, all of which is restricted for the payment of debt service.
The net increase in the combined fund balances during the current year in the debt service funds was $1.0
million, which was a two percent change from the prior year end. The increase in fund balance was lower
than the increase experienced in the prior year due to the fact that the amount of transfers-in exceeded the
actual expenditures incurred for principal and interest payments by a lesser degree than in the prior year.
Proprietary funds. The County’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
Unrestricted net position of the Kulaimano Elderly Housing Project (Kulaimano) at the end of the year
amounted to $630,732 and $629,023 for the Ouli Ekahi Affordable Housing Project (Ouli Ekahi).
Unrestricted net position for Kulaimano increased by $143,124 and unrestricted net position for Ouli Ekahi
increased by $7,000. Other factors concerning the finances of these two funds have already been addressed
in the discussion of the County’s business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget were primarily the result of a $7.9
million increase in appropriations for expenditures and other financing uses, and $7.9 million increase in
total revenues, the most significant reasons were due to additional grant appropriations from the federal
government relating to coastal resilience ($2.0 million) and opioid settlement ($0.5 million).
Differences between the final budget and the actual (budgetary basis) resulted in approximately $37.9
million more revenues than expected and $77.8 million less expenditures than appropriated.
- 25 -
This is primarily due to the following factors:
• The positive variance between budgeted and actual revenues was entirely attributable to the positive
results in taxes and assessments, with $27.7 million more revenue resulting from property taxes and
$10.0 million more resulting from the County’s transient accommodation tax.
• Approximately $50.9 million of the unspent appropriations is related to salaries and wages and $21.6
million is from the various countywide expenditure accounts relating to salaries and wages, including
benefits and anticipated compensation adjustments. The variance is due primarily to unfilled vacancies
and continued efforts by each department to control payroll costs during the budget year due to the
tough economic conditions facing the County. The following functions are responsible for the majority
of the total variance in expenditures: public safety ($16.1 million), highways and streets ($14.4 million),
and general government ($14.6 million).
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The County’s investment in capital assets for its governmental and business-type activities
as of June 30, 2024 amounts to $1.6 billion (net of accumulated depreciation). This investment in capital
assets includes land and improvements, buildings and improvements, equipment, leases, subscription
assets, easements, and infrastructure assets, which consists of primarily roads and bridges. The total
increase in the County’s investment in capital assets for the current fiscal year was 5%.
Major capital asset events during the current fiscal year included the following:
• Construction continued on the Hawai‘i County Radio System Upgrade project; construction in
progress as of the end of the current fiscal year had reached $22.4 million with $1.0 million coming
from the current fiscal year.
• Construction continued on the Hilo Wastewater Treatment Plan Upgrade project; construction in
progress as of the end of the current fiscal year had reached $14.8 million with $3.7 million coming
from the current fiscal year.
• Construction continued on the Pua Force Main Installation and Rehabilitation project; construction
in progress as of the end of the current fiscal year had reached $4.6 million with $1.3 million coming
from the current fiscal year.
• Construction continued on the Kukuiola and Village 9 Affordable Rental and Homeless project;
construction in progress as of the end of the fiscal year had reached $6.6 million with $3.5 million
coming from the current fiscal year.
• Construction continued on the Kolekole Gulch Park Accessibility Improvements project;
construction in progress as of the end of the fiscal year had reached $6.5 million with $5.4 and the
project was transferred to Buildings.
• Construction continued on the NAS Swimming Pool Accessibility Improvements project;
construction in progress as of the end of the fiscal year had reached $6.6 million with $3.2 million
coming from the current fiscal year.
• Construction continued on the Richardson’s Ocean Park Access Improvement project; construction
in progress as of the end of the fiscal year had reached $3.9 million with $348k coming from the
current fiscal year and the project was transferred to Buildings.
• Construction continued on the Kīlauea Avenue/Keawe Street Rehabilitation projects; construction
in progress as of the end of the current fiscal year had reached $12.8 million with $10.1 million
coming from the current fiscal year.
• Construction continued on the Waikoloa Road Rehabilitation project; construction in progress as
of the end of the fiscal year had reached $13.7 million with $12.9 million coming from the current
fiscal year.
- 26 -
• Construction continued on the Hawai‘i County Emergency Call Center project; construction in
progress as of the end of the fiscal year had reached $27.1 million with $10.9 million coming from
the current fiscal year.
Additional information on the County’s capital assets can be found in note 5 to the basic financial
statements.
Long-term debt. Long-term debt is primarily comprised of bonds of $414.8 million and State Revolving
Fund loans of $49.2 million. The entire amount of bonds was comprised of general obligation bonds which
are backed by the full faith and credit of the County.
At the end of the fiscal year, the County held an “AA+” rating from Standard & Poor’s, an “AA+” rating
from Fitch and an “Aa2” rating from Moody’s for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue up to 15 percent of the total
assessed value of all county real property as established for tax purposes on the last tax assessment rolls.
The current debt limitation for the County is $7.2 billion, which is in excess of the County’s outstanding
general obligation debt. Currently the County’s outstanding debt represents 6 percent of our debt limitation.
Additional information on the County’s long-term debt can be found in note 10 to the basic financial
statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
• The unemployment rate for the County at the end of the current fiscal year is at approximately 3.8
percent, which is comparable to the end of the prior fiscal year.
• For the twelve-month period ending December 2024, preliminary data shows that total visitor
arrivals reached 1,729,027, compared to 1,779,063 in 2023. This represents a 2.8% decrease in
visitor arrivals year over year.
At the end of the current fiscal year, unrestricted fund balance in the general fund was $165.5 million. The
County has appropriated $37.6 million of this amount for spending in the 2025 fiscal year budget and the
majority is included in the assigned portion of the fund balance.
2024 2023 2024 2023 2024 2023
399,404,732$ 390,407,932$ 753,877$ 753,877$ 400,158,609$ 391,161,809$
Infastructure assets 267,166,648 285,691,707 - - 267,166,648 285,691,707
Ground and site improvements - - 27,461 31,811 27,461 31,811
Buildings and improvements 676,647,412 650,884,115 2,503,307 2,612,632 679,150,719 653,496,747
Easements 30,520,115 22,317,344 - - 30,520,115 22,317,344
Right of use assets 18,184,803 17,784,351 - - 18,184,803 17,784,351
Subscription assets 13,328,429 3,536,865 - - 13,328,429 3,536,865
Equipment 71,153,528 60,879,955 44,991 41,790 71,198,519 60,921,745
Construction work in progress 147,662,342 118,274,480 105,256 105,256 147,767,598 118,379,736
Total 1,624,068,009$ 1,549,776,749$ 3,434,892$ 3,545,366$ 1,627,502,901$ 1,553,322,115$
Land and improvements
June 30, 2024 and 2023
(net of depreciation and amortization)
Capital Assets
Primary Government
Governmental Activities Business-type Activities Total
- 27 -
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the County’s finances for all those with
an interest in the government’s finances. Questions concerning any of the information provided in this
report or requests for additional information should be addressed to the Director of Finance, County of
Hawai‘i, 25 Aupuni Street, Suite 2103, Hilo, Hawai‘i 96720.
BASIC FINANCIAL STATEMENTS
Governmental Business-type Component
Activities Activities Total Unit
Assets
Current assets:
Cash and cash equivalents (notes 2 and 14)309,839,558$ 1,147,092$ 310,986,650$ 45,092,014$
Restricted cash and cash equivalents (note 2)332,968,069 48,742 333,016,811 -
Investments (note 2)22,660,794 - 22,660,794 18,552,758
Restricted investments (note 2)43,500,000 - 43,500,000 -
Receivables, net (note 3)127,463,281 11,462 127,474,743 10,196,569
Receivable from improvement district
(notes 3 and 10)193,673 - 193,673 -
Internal balances (note 4)172,515 (172,515) - -
Inventories 9,243,083 - 9,243,083 1,723,334
Prepaid expenses 494,207 16,740 510,947 104,162
Other 5,828,008 - 5,828,008 218,073
Total current assets 852,363,188 1,051,521 853,414,709 75,886,910
Noncurrent assets:
Investments (note 2)18,765,276 - 18,765,276 6,590,218
Restricted investments (note 2)3,379,355 - 3,379,355 -
Restricted cash and cash equivalents (notes 2 and 14)- 224,071 224,071 888,225
Receivable from improvement district, excluding
current portion (notes 3 and 10)3,532,734 - 3,532,734 -
Other 2,388,189 - 2,388,189 1,831,080
Capital assets (notes 5, 7, 8 and 14):
Utility plant in service, net - - - 274,150,660
Infrastructure assets, net 267,166,648 - 267,166,648 -
Ground and site improvements, net - 27,461 27,461 -
Buildings and improvements, net 676,647,412 2,503,307 679,150,719 -
Equipment, net 71,153,528 44,991 71,198,519 -
Easements, net 30,520,115 - 30,520,115 -
Preliminary survey and investigation charges - - - 1,456,452
Land and improvements 399,404,732 753,877 400,158,609 5,787,581
Right of use assets, net 18,184,803 - 18,184,803 283,223
Subscription assets, net 13,328,429 - 13,328,429 40,056
Construction work in progress 147,662,342 105,256 147,767,598 11,763,518
Total capital assets, net 1,624,068,009 3,434,892 1,627,502,901 293,481,490
Total noncurrent assets 1,652,133,563 3,658,963 1,655,792,526 302,791,013
Total assets 2,504,496,751 4,710,484 2,509,207,235 378,677,923
Deferred Outflows of Resources
Deferred loss on refunding 2,753,376 - 2,753,376 -
Deferred outflow related to pensions and other
post employment benefits (notes 13 and 14)170,634,461 - 170,634,461 6,413,936
Total deferred outflows of resources 173,387,837 - 173,387,837 6,413,936
Total Assets and Deferred Outflows of Resources 2,677,884,588$ 4,710,484$ 2,682,595,072$ 385,091,859$
(Continued)
Primary Government
COUNTY OF HAWAIʻI
Statement of Net Position
June 30, 2024
- 29 -
COUNTY OF HAWAIʻI
Statement of Net Position
June 30, 2024
(Concluded)
Governmental Business-type Component
Activities Activities Total Unit
Liabilities
Current liabilities:
Accounts payable and accrued liabilities 32,045,233$ 73,593$ 32,118,826$ 5,311,895$
Accrued payroll 14,427,699 - 14,427,699 4,817,942
Interfund balances 65,646 (65,646) - -
Advance collections - intergovernmental 101,678,091 6,101 101,684,192 -
Interest due on long-term debt 7,363,691 1,789 7,365,480 348,471
Bonds and loans payable, current portion net
(notes 10 and 14)41,714,435 - 41,714,435 6,711,144
Compensated absences, current portion (note 10) 12,128,656 - 12,128,656 679,242
Claims and judgments, current portion
(notes 10, 12 and 14)74,560,144 - 74,560,144 324,488
Leases and other financing agreements,
current portion (notes 8 and 10)5,707,123 - 5,707,123 32,144
Subscription liability, current portion 2,171,308 - 2,508
Landfill costs payable, current portion 2,171,308
(notes 9 and 10)497,048 - 497,048 -
Customers' deposits - - - 155,426
Other 11,572,063 - 11,572,063 -
Total current liabilities 303,931,137 15,837 303,946,974 18,383,260
Noncurrent liabilities:
Bonds and loans payable, net (notes 10 and 14) 482,014,209 - 482,014,209 65,405,468
Compensated absences (note 10)38,305,876 - 38,305,876 1,169,905
Claims and judgments (notes 10, 12 and 14)8,252,850 - 8,252,850 299,526
Leases and other financing agreements
(notes 8 and 10)24,600,989 - 24,600,989 255,955
Subscription liability 10,437,434 - 10,437,434 1,121
Landfill costs payable (notes 9 and 10)11,051,952 - 11,051,952 -
Customers' deposits - - - 2,820,920
Net pension liability (notes 13 and 14)634,255,399 - 634,255,399 29,273,892
Net OPEB liability (notes 13 and 14)261,401,395 - 261,401,395 6,841,344
Other 19,461,335 - 19,461,335 -
Total noncurrent liabilities 1,489,781,439 - 1,489,781,439 106,068,131
Total liabilities 1,793,712,576 15,837 1,793,728,413 124,451,391
Deferred Inflows of Resources
Deferred inflows related to pensions and other
post employment benefits (notes 13 and 14) 114,837,891 - 114,837,891 8,694,247
Deferred inflows - other (note 6)6,212,873 - 6,212,873 2,117,089
Total Deferred Inflows of Resources 121,050,764 - 121,050,764 10,811,336
Total Liabilities and Deferred Inflows of Resources 1,914,763,340 15,837 1,914,779,177 135,262,727
Net Position
Net investment in capital assets 1,135,168,681 3,434,892 1,138,603,573 221,845,308
Restricted for:
Capital Projects 30,029,361 - 30,029,361 -
Debt service (note 10)55,424,702 - 55,424,702 -
Highways, streets and abandoned vehicles 114,030,803 - 114,030,803 -
Public access open space 22,747,055 - 22,747,055 -
Disaster and emergencies 11,498,359 - 11,498,359 -
Other 5,505,982 - 5,505,982 -
Unrestricted (611,283,695) 1,259,755 (610,023,940) 27,983,824
Total net position 763,121,248$ 4,694,647$ 767,815,895$ 249,829,132$
See accompanying notes to the basic financial statements.
Primary Government
- 30 -
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government 126,527,858$ 2,751,041$ 5,376,331$ 3,231,756$
Public safety 260,420,327 8,457,724 38,387,161 193,404
Highways and streets 90,918,955 18,057,208 5,902,197 20,560,831
Health, education and welfare 83,470,948 2,699,332 53,580,958 1,813,804
Culture and recreation 33,445,396 2,573,896 209,019 139,669
Sanitation 71,863,269 35,918,451 1,463,065 4,004,047
Interest on long-term debt 16,249,515 - - -
Total governmental activities 682,896,268 70,457,652 104,918,731 29,943,511
Business-type activities:
Health, education and welfare 969,063 603,796 396,005 -
Total primary government 683,865,331$ 71,061,448$ 105,314,736$ 29,943,511$
Component unit:
Water (note 14) 66,831,155$ 68,084,598$ -$ 9,174,072$
General revenues:
Taxes:
Property taxes, levied for general purposes
Public service company taxes
County transient accomodations tax
Franchise taxes
Fuel taxes
General excise tax surcharge
Grants and contributions not restricted to specific programs
Investment earnings
Miscellaneous
Total general revenues and transfers
Change in net position
Net position, beginning of fiscal year
Net position, end of fiscal year
See accompanying notes to the basic financial statements.
COUNTY OF HAWAIʻI
Statement of Activities
For the Fiscal Year Ended June 30, 2024
Program Revenues
- 31 -
Governmental Business-type Component
Activities Activities Total Unit
(115,168,730)$ -$ (115,168,730)$ -$
(213,382,038) - (213,382,038) -
(46,398,719) - (46,398,719) -
(25,376,854) - (25,376,854) -
(30,522,812) - (30,522,812) -
(30,477,706) - (30,477,706) -
(16,249,515) - (16,249,515) -
(477,576,374) - (477,576,374) -
- 30,738 30,738 -
(477,576,374) 30,738 (477,545,636) -
- - - 10,427,515
488,372,488 - 488,372,488 -
10,302,928 - 10,302,928 -
37,374,260 - 37,374,260 -
11,589,997 - 11,589,997 -
21,707,504 - 21,707,504 -
72,740,427 - 72,740,427 -
849,934 - 849,934 -
27,412,752 16,822 27,429,574 1,633,794
1,657,038 - 1,657,038 -
672,007,328 16,822 672,024,150 1,633,794
194,430,954 47,560 194,478,514 12,061,309
568,690,294 4,647,087 573,337,381 237,767,823
763,121,248$ 4,694,647$ 767,815,895$ 249,829,132$
Primary Government
Net (Expense) Revenue and Changes in Net Position
COUNTY OF HAWAIʻI
Statement of Activities
For the Fiscal Year Ended June 30, 2024
- 32 -
Hawaii County Other Total
Capital Housing Governmental Governmental
General Projects Agency Funds Funds
Assets
Cash and cash equivalents (note 2)278,789,065$ 169,730,080$ 35,846,212$ 158,442,270$ 642,807,627$
Investments (note 2)39,972,795 4,832,630 - 43,500,000 88,305,425
Receivables, net (note 3)42,500,241 - 686,211 5,063,805 48,250,257
Due from other governmental funds (note 4)55,551,188 794,499 139,825 1,075,308 57,560,820
Due from nongovernmental funds (note 4)- - 8,235 164,280 172,515
Receivables from other governments (note 3)22,266,657 27,257,886 580,653 29,107,828 79,213,024
Inventories 9,243,083 - - - 9,243,083
Other 4,756,062 1,065,607 78,572 2,810,163 8,710,404
Total assets 453,079,091$ 203,680,702$ 37,339,708$ 240,163,654$ 934,263,155$
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable 10,951,899$ 12,547,543$ 194,658$ 8,351,133$ 32,045,233$
Accrued payroll 12,238,747 - 250,965 1,937,986 14,427,698
Due to other governmental funds (note 4)639,449 52,980,501 147,423 3,793,447 57,560,820
Due to nongovernmental funds (note 4)- 65,646 - - 65,646
Advance collections-intergovernmental 86,981,844 914,498 13,769,751 11,998 101,678,091
Claims and judgments (notes 10, 12 and 14)70,000,000 - - - 70,000,000
Other 9,434,354 1,280,896 343,057 413,754 11,472,061
Total liabilities 190,246,293 67,789,084 14,705,854 14,508,318 287,249,549
Deferred Inflows of Resources:
Unavailable revenue (note 6)40,029,211 5,153,109 274,080 5,063,805 50,520,205
Deferred inflows related to advance collections
of real property taxes and liquor licenses 6,026,191 - - - 6,026,191
Deferred inflows related to leases 908,500 - 479,569 1,269,642 2,657,711
Total deferred inflows of resources 46,963,902 5,153,109 753,649 6,333,447 59,204,107
Fund balances:
Nonspendable: Inventory & Prepaid 9,243,083 - - - 9,243,083
Restricted for:
Debt service (note 10)- - - 55,424,702 55,424,702
Highways, streets and abandoned vehicles - 80,770,744 - 114,030,803 194,801,547
Parks and recreational projects - 30,644,719 - -30,644,719
Public access open space 22,747,055 - - - 22,747,055
Disaster and emergencies 16,795,075 - - - 16,795,075
General & public safety facilities - 4,619,030 - - 4,619,030
Other 1,560,751 828,196 1,368,854 2,576,377 6,334,178
Committed to:
Budget stabilization 8,728,269 - - - 8,728,269
Lower Puna area - - - 5,636,931 5,636,931
Housing. rental assistance and subsidy - - 20,511,351 1,228,396 21,739,747
Sanitation - - - 29,705,152 29,705,152
Self insurance 3,352,972 - - - 3,352,972
Highways, streets and abandoned vehicles - 1,103,191 - 9,901,161 11,004,352
Parks and recreational projects - 2,614,299 - 64,980 2,679,279
Zoning change impact mitigation (fair share)- 4,855,075 - -4,855,075
Other 341,234 1,221,904 - 753,387 2,316,525 Assigned to:
Subsequent year's budget 37,577,091 - - - 37,577,091
Other 21,646,139 4,081,351 - - 25,727,490
Unassigned 93,877,227 - - - 93,877,227
Total fund balances 215,868,896 130,738,509 21,880,205 219,321,889 587,809,499
Total liabilities, deferred inflows, and fund balances 453,079,091$ 203,680,702$ 37,339,708$ 240,163,654$ 934,263,155$
See accompanying notes to the basic financial statements.
COUNTY OF HAWAIʻI
Governmental Funds
Balance Sheet
June 30, 2024
- 33 -
Total fund balances - governmental funds 587,809,499$
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds. These assets
consist of:
Subscription assets, net 13,328,429
Land and improvements 399,404,732
Infrastructure assets, net 267,166,648
Buildings and improvements, net 676,647,412
Equipment, net 71,153,528
Easements, net 30,520,115
Right to use assets, net 18,184,803
Construction work in progress 147,662,342
Total capital assets, net 1,624,068,009
Deferred amounts on refunding, pension and other post employment benefits
are reported as deferred outflows of resources in the government-wide
financial statements but are not reported in the governmental fund statements 173,387,837
Some of the County's revenues will be collected after year-end but are
not available soon enough to pay for the current period's expenditures
and therefore are unavailable in the funds. (note 6)52,991,234
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
Subscription liability (12,608,742)
Bonds and loans payable, net of receivable
from improvement district (520,002,237)
Interest due on long-term debt (7,363,691)
Leases and other financing agreements (30,308,112)
Compensated absences (50,434,532)
Claims and judgments (12,812,994)
Landfill costs payable (11,549,000)
Pollution remediation (17,323,913)
Underground storage tank liability (1,775,000)
Net OPEB liability (261,401,395)
Net pension obligation (634,255,399)
Total long-term liabilities (1,559,835,015)
Unamortized gain on refunding (462,425)
Deferred amounts related to pension and other post employment benefits are
reported as deferred inflows of resources in the government-wide financial
statements but are not are not reported in the governmental fund statements (114,837,891)
Net position of governmental activities 763,121,248$
See accompanying notes to the basic financial statements.
COUNTY OF HAWAIʻI
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2024
- 34 -
Hawaii County Other Total
Capital Housing Governmental Governmental
General Projects Agency Funds Funds
Revenues
Property taxes 483,004,239$ -$ -$ -$ 483,004,239$
Public service company taxes 10,302,928 - - - 10,302,928
County transient accomodations tax 37,178,793 - - - 37,178,793
Fuel taxes - - - 21,707,504 21,707,504
Public utility franchise taxes - - - 11,589,997 11,589,997
Licenses and permits 11,658,143 - - 16,590,934 28,249,077
General excise tax surcharge - - - 72,740,427 72,740,427
Intergovernmental 63,513,498 18,027,387 41,938,694 4,482,110 127,961,689
Charges for services 1,808,877 - - 33,235,397 35,044,274
Investment earnings, net 28,327,692 98,239 727,454 291,328 29,444,713
Other 2,153,109 30,226 1,760,686 1,522,924 5,466,945
Total revenues 637,947,279 18,155,852 44,426,834 162,160,621 862,690,586
Expenditures
Current:
General government 138,239,885 - - 3,126,852 141,366,737
Public safety 170,414,741 - - 12,347,415 182,762,156
Highways and streets 2,682,930 - - 52,671,521 55,354,451
Health, education and welfare 24,599,219 - 46,727,474 1,012,285 72,338,978
Culture and recreation 30,359,825 - -1,884,519 32,244,344
Sanitation 120,085 - -58,640,180 58,760,265
Pension and retirement
contributions (note 13)69,792,732 - 1,205,806 9,487,689 80,486,227
Employees' health insurance 19,389,598 - 409,073 3,755,326 23,553,997
Other postemployment benefits 44,136,000 - -- 44,136,000
Other 7,620,588 - 87,569 1,249,454 8,957,611
Debt service:
Principal 6,693,492 - 341,920 64,084,406 71,119,818
Interest 1,199,400 - 146,609 19,970,730 21,316,739
Capital outlay 21,341,360 82,653,564 - - 103,994,924
Total expenditures 536,589,855 82,653,564 48,918,451 228,230,377 896,392,247
Excess (deficiency) of revenues
over (under) expenditures 101,357,424 (64,497,712) (4,491,617) (66,069,756) (33,701,661)
(Continued)
COUNTY OF HAWAIʻI
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2024
- 35 -
COUNTY OF HAWAIʻI
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2024
(Concluded)
Hawaii County Other Total
Capital Housing Governmental Governmental
General Projects Agency Funds Funds
Other Financing Sources (Uses)
Sale of assets 6,999$ -$ -$ -$ 6,999$
Increase in right of use and subscription
assets (notes 7, 8, and 10) 16,623,074 - 2,257,251 4,381,847 23,262,172
State Revolving Fund loans (note 10) - 12,666,494 - - 12,666,494
Transfers in (note 4) - 42,962,289 11,503,333 118,912,263 173,377,885
Transfers out (note 4) (92,854,065) (28,500,000) - (52,023,820) (173,377,885)
Total other financing sources (uses) (76,223,992) 27,128,783 13,760,584 71,270,290 35,935,665
Net change in fund balances 25,133,432 (37,368,929) 9,268,967 5,200,534 2,234,004
Fund balances at beginning of fiscal year 190,735,464 168,107,438 12,611,238 214,121,355 585,575,495
Fund balances at end of fiscal year 215,868,896$ 130,738,509$ 21,880,205$ 219,321,889$ 587,809,499$
See accompanying notes to the basic financial statements.
- 36 -
Net change in fund balances - total governmental funds 2,234,004$
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds.
However, in the statement of activities, the cost of capital assets is
allocated over their estimated useful lives as depreciation and amortization
expense. In the current period, these amounts are:
Capital outlay 115,276,674
Dedicated and contributed property 3,605,324
Right of use assets 3,738,500
Subscription assets 11,648,488
Depreciation and amortization expense and loss on disposals (59,977,726)
Excess of capital outlay over depreciation and amortization expense 74,291,260
Borrowings provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement
of net position. In the current period, assets financed through:
State Revolving Fund loans (12,666,494)
Subscription liabilities (11,648,488)
Leases and other financing agreements (11,613,684)
Total debt proceeds (35,928,666)
Repayment of long-term debt is reported as an expenditure in governmental
funds, but the repayment reduces long-term liabilities in the statement of
net position. In the current year, these amounts consist of:
Bond principal retirement, net of receivable from improvement district 29,738,858
Bond anticipation notes repayment 28,500,000
State Revolving Fund loan repayments and forgiveness 7,644,873
Subscription payments 2,378,638
Lease and other financing agreements payments 6,717,248
Total long-term debt repayment 74,979,617
Because some revenues will not be collected for several months after the
County's fiscal year end, they are not considered "available" revenues and
are "deferred" in the governmental funds. Unavailable revenues increased by
this amount this year. 6,592,182
(Continued)
COUNTY OF HAWAIʻI
Reconciliation of the Change in Fund Balances of Governmental Funds
For the Fiscal Year Ended June 30, 2024
to the Statement of Activities
- 37 -
COUNTY OF HAWAIʻI
Reconciliation of the Change in Fund Balances of Governmental Funds
For the Fiscal Year Ended June 30, 2024
to the Statement of Activities
(Concluded)
Some items reported in the statement of activities do not involve current
financial resources and therefore are not reported as expenditures in
governmental funds. These activities are:
Net increase in compensated absences (1,861,445)$
Net decrease in claims and judgments 29,945,956
Net increase in landfill closure/postclosure care costs (672,000)
Net decrease in pollution remediation costs 64,763
Amortization of premium from bond issuance 6,140,253
Amortization of deferred loss on refunding (653,050)
Amortization of gain on refunding 102,761
Net increase in accrued interest (522,740)
Net increase to expenses related to net OPEB liability 29,743,911
Net decrease to expenses related to pension and salaries and wages 9,974,148
Net additional expenses 72,262,557
Change in net position of governmental activities 194,430,954$
See accompanying notes to the basic financial statements.
- 38 -
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Assets
Current assets:
Cash and cash equivalents (note 2) 586,104$ 560,838$ 1,146,942$
Restricted cash and cash equivalents (note 2) 14,623 34,119 48,742
Imprest fund (note 2) 50 100 150
Receivables, net (note 3) 9,323 2,139 11,462
Due from governmental funds (note 4) 65,646 - 65,646
Prepaid expenses 16,740 - 16,740
Total current assets 692,486 597,196 1,289,682
Noncurrent assets:
Restricted cash and cash equivalents (note 2)146,710 77,361 224,071
Capital assets (note 5):
Land and site improvements 511,000 515,727 1,026,727
Buildings and equipment 3,107,551 1,057,070 4,164,621
Less accumulated depreciation (1,613,974) (247,738) (1,861,712)
Construction work in progress - 105,256 105,256
Total capital assets 2,004,577 1,430,315 3,434,892
Total noncurrent assets 2,151,287 1,507,676 3,658,963
Total assets 2,843,773 2,104,872 4,948,645
Liabilities
Current liabilities:
Accounts payable 17,964 11,965 29,929
Due to governmental funds (note 4) 171,099 1,416 172,515
Security deposits payable from restricted assets 14,616 29,048 43,664
Unearned revenue 2,996 3,105 6,101
Interest payable 1,789 - 1,789
Total current liabilities 208,464 45,534 253,998
Net Position
Net investment in capital assets 2,004,577 1,430,315 3,434,892
Unrestricted 630,732 629,023 1,259,755
Total net position 2,635,309$ 2,059,338$ 4,694,647$
See accompanying notes to the basic financial statements.
Enterprise Funds
COUNTY OF HAWAIʻI
Proprietary Funds
Statement of Net Position
June 30, 2024
Business-type Activities-
- 39 -
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Operating revenues:
Rental receipts from tenants 179,717$ 408,759$ 588,476$
Rental subsidy from federal government - HUD 396,005 - 396,005
Laundry receipts 413 - 413
Other 2,407 12,500 14,907
Total operating revenues 578,542 421,259 999,801
Operating expenses:
Utilities 59,320 130,868 190,188
General and administration 281,371 171,455 452,826
Maintenance and repairs 74,730 105,281 180,011
Depreciation (note 5) 105,588 32,300 137,888
Total operating expenses 521,009 439,904 960,913
Operating income (loss) 57,533 (18,645) 38,888
Nonoperating revenues (expenses):
Investment income 13,559 3,263 16,822
Interest expense (7,443) - (7,443)
Loss on disposal of capital assets (573) (134) (707)
Total nonoperating revenues, net 5,543 3,129 8,672
Change in net position 63,076 (15,516) 47,560
Net position, beginning of fiscal year 2,572,233 2,074,854 4,647,087
Net position, end of fiscal year 2,635,309$ 2,059,338$ 4,694,647$
See accompanying notes to the basic financial statements.
Enterprise Funds
COUNTY OF HAWAIʻI
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2024
Business-type Activities-
- 40 -
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Cash Flows from Operating Activities
Receipts from tenants 186,577$ 424,564$ 611,141$
Receipts from federal government - HUD 396,005 - 396,005
Payments to suppliers for goods and services (494,406) (409,056) (903,462)
Net cash provided by operating activities 88,176 15,508 103,684
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable (82,585) (8,090) (90,675)
Interest paid on notes payable (9,013) - (9,013)
Purchase of capital assets (26,113) (1,828) (27,941)
Net cash used in capital and related financing activities (117,711) (9,918) (127,629)
Cash Flows from Investing Activities
Interest on investments 13,559 3,263 16,822
Net cash provided by investing activities 13,559 3,263 16,822
Net increase (decrease) in cash and cash equivalents (15,976) 8,853 (7,123)
Cash and cash equivalents at beginning of fiscal year (including
restricted cash and cash equivalents) 763,463 663,565 1,427,028
Cash and cash equivalents at end of fiscal year (including
restricted cash and cash equivalents) 747,487$ 672,418$ 1,419,905$
Reconciliation of Operating Income (Loss) to Net Cash
Provided by Operating Activities
Operating income (loss) 57,533$ (18,645)$ 38,888$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation expense 105,588 32,300 137,888
Change in assets and liabilities:
Receivables, net 1,444 6,473 7,917
Due from governmental funds (65,645) - (65,645)
Prepaid expenses (4,824) - (4,824)
Accounts payable (2,229) 302 (1,927)
Due to other funds (6,287) (1,754) (8,041)
Security deposits payable (400) 1,261 861
Unearned revenue 2,996 (4,429) (1,433)
Net cash provided by operating activities 88,176$ 15,508$ 103,684$
See accompanying notes to the basic financial statements.
Enterprise Funds
COUNTY OF HAWAIʻI
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2024
Business-type Activities -
- 41 -
Private-
Purpose Custodial
Trusts Funds
Assets
Cash and cash equivalents (note 2) 577,982$ 5,476,910$
Investments (note 2) 2,073,074 -
Receivables:
Due from other custodial funds - 12,225
Other receivables - 136,893
Total receivables - 149,118
Total assets 2,651,056 5,626,028
Liabilities
Accrued liabilities - 2,146,613
Due to other custodial funds - 12,225
Advances payable - 45,618
Total liabilities - 2,204,456
Net Position
Restricted for other parties 2,651,056 3,421,572
Total net position 2,651,056$ 3,421,572$
See accompanying notes to the basic financial statements.
COUNTY OF HAWAIʻI
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2024
- 42 -
Private-
Purpose Custodial
Trusts Funds
Additions
Tax collections for state -$ 30,133,621$
Special assessment collections - 2,469,471
Developer deposit - 75,000
Employee collections - 561,008
Lapsed checks - 96,637
Collections from vehicle registrations and licenses - 320,456
Investment earnings 224,691 88,679
Total additions 224,691 33,744,872
Deductions
Grant payments 83,391 -
Payment of taxes to state - 29,006,902
Payments to state, not for profits and
improvement district - 1,415,290
Contributions to debt repayment - 265,870
Administrative charges - 1,177,721
Community facility district expenses - 972,597
Reissuance of checks - 27,542
Reimbursements to employees - 566,446
Investment Fees 15,789 -
Other - 41,157
Total deductions 99,180 33,473,525
Change in net position 125,511 271,347
Net position, beginning of fiscal year 2,525,545 3,150,225
Net position, end of fiscal year 2,651,056$ 3,421,572$
See accompanying notes to the basic financial statements.
COUNTY OF HAWAIʻI
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2024
- 43 -
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 44 -
The accounting policies of the County of Hawai‘i (the County) conform to U.S. generally accepted
accounting principles (GAAP) as applicable to local governmental units. The following notes to the
basic financial statements are an integral part of the County's Annual Comprehensive Financial
Report (ACFR).
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Financial Reporting Entity
The County has implemented Governmental Accounting Standards Board Statement No. 14,
The Financial Reporting Entity (GASB Statement No. 14), Statement No. 39, Determining
Whether Certain Organizations Are Component Units (GASB Statement No. 39) and Statement
No. 61, The Financial Reporting Entity: Omnibus an amendment of GASB Statements No. 14
and 34 (GASB Statement No. 61). All organizations, activities or functions that meet the criteria
in GASB Statement No. 14, as amended, No. 39 and No. 61 for inclusion in the reporting entity
are included in the County’s basic financial statements.
Primary Government The County operates under the Mayor-Council form of government
under a charter that became effective on January 2, 1969, and was amended in 1979, 1982, 1990
and 2000. The County's operations are organized by the following functions: general
government; public safety; highways and streets; sanitation; health, education and welfare;
culture and recreation; pension and retirement contributions; health fund; miscellaneous; capital
outlay; and debt service. The State of Hawai‘i (the State) assumes full responsibility for several
major functions usually performed by local governments, including education, welfare, health
and judicial functions. There are no separate city, county or township governments nor any
school districts, special districts, authorities or public corporations with overlapping authority.
GASB Statement No. 14, as amended, defines component units as legally separate organizations
for which the elected officials of the primary government are financially accountable or for
which the primary government may determine, through exercise of management’s professional
judgment, that the inclusion of an organization that does not meet the financial accountability
criteria is necessary in order to prevent the reporting entity’s financial statements from being
misleading. "Financial accountability" is the level of accountability that exists if a primary
government appoints a voting majority of an organization's governing board or if the
organization is fiscally dependent on the primary government and is either able to impose its
will on that organization or there is a potential for the organization to provide specific financial
benefits to, or impose specific financial burdens on, the primary government. A primary
government has the ability to impose its will on an organization if it can significantly influence
the programs, projects, activities or level of services performed or provided by the organization.
An organization has a financial benefit or burden relationship with the primary government if
any one of three conditions exist: (1) The primary government is legally entitled to or can
otherwise access the organization's resources; (2) The primary government is legally obligated
or has otherwise assumed the obligation to finance the deficits of, or provide financial support
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
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to, the organization; or (3) The primary government is obligated in some manner for the debt of
the organization.
As required by GAAP as set forth in GASB Statement No. 14, No. 39 and No. 61, these basic
financial statements present the County of Hawai‘i (the primary government) and its component
unit, the Department of Water Supply (the Department). This component unit is included in the
County's reporting entity because the County is financially accountable for it.
Discretely Presented Component Unit The component unit column in the basic financial
statements includes the financial data of the Department, a legally independent agency of the
County that is accounted for as an enterprise fund. It is reported in a separate column to
emphasize that it is legally separate from the County. The members of the Water Board, the
governing body of the Department, are appointed by the Mayor of the County and confirmed
by the County Council. The Department is granted corporate powers by state statute and the
County Charter. Although the County does not have the authority to approve or modify the
Department's operational and capital budgets, the County has issued bonds on the Department's
behalf that are general obligations of the County. Because the County is obligated to repay
these bonds in the event of default by the Department, the County is financially accountable for
the debts of the Department. See Note 14 for component unit disclosures for the Department.
Complete financial statements of the Department can be obtained from the Department of Water
Supply, 345 Kekūanaō‘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, economic resource basis, which incorporates long-term assets and receivables
as well as long-term debt and obligations.
The government-wide statement of activities reflects both the gross and net costs per functional
category (general government, public safety, highways and streets, etc.) which are otherwise
being supported by general government revenues (property taxes, certain intergovernmental
revenues, etc.). The statement of activities reduces gross expenses (including depreciation) by
related program revenues, operating and capital grants. The program revenues must be directly
associated with the function (general government, public safety, highways and streets, etc.) or
a business-type activity. The operating grants include operating-specific and discretionary
(either operating or capital) grants while the capital grants column reflects capital-specific
grants. The net cost (by function or business-type activity) is normally covered by general
revenues.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
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The government-wide focus is more on the sustainability of the County as an entity and the
change in aggregate financial position resulting from the activities of the fiscal period. The fund
financial statements’ emphasis is on the major funds in either the governmental or business-type
categories. Nonmajor funds (by category) are summarized into a single column.
The governmental funds in the fund financial statements are presented using the current
financial resource focus and modified accrual basis of accounting. This is the manner in which
these funds are normally budgeted. This presentation is deemed most appropriate to (a)
demonstrate legal and covenant compliance, (b) demonstrate the source and use of liquid
resources, and (c) demonstrate how the County’s actual experience conforms to the budget fiscal
plan. Since the governmental fund statements are presented using a different measurement
focus and basis of accounting than the government-wide statements’ governmental activities
column, a reconciliation is presented on the page following each statement, which briefly
explains the adjustments necessary to transform the fund based financial statements into the
governmental activities’ column of the government-wide presentation.
The County’s fiduciary funds are presented in the fund financial statements by type (private
purpose and custodial). Since by definition these assets are being held for the benefit of a third
party (private parties, state government, etc.) and cannot be used to address activities or
obligations of the government, these funds are not incorporated into the government-wide
statements.
Government-wide and fund financial statements – The government-wide financial statements
(i.e., the statement of net position and the statement of activities) report information on all of
the nonfiduciary activities of the primary government and its component unit. The effect of
interfund activity has been removed from these statements during the process of incorporating
fund data but interfund services provided and used have not been eliminated in the process of
consolidation. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to
a significant extent on fees and charges for support. Likewise, the primary government is
reported separately from certain legally separate component units for which the primary
government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (a) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and (b) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes and other items not included among program revenues are reported instead as general
revenues.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
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Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Activities in funds – The financial transactions of the County are recorded in individual funds.
Each fund is accounted for by providing a separate set of self-balancing accounts that comprises
its assets, deferred outflows of resources, liabilities, deferred inflows of resources, reserves,
fund equity, revenues and expenditures/expenses. The various funds are reported by generic
classification within the financial statements.
GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and
Analysis – for State and Local Governments, sets forth minimum criteria (percentage of the
assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or
expenditures/expenses of either fund category or the governmental and enterprise combined)
for the determination of major funds. The nonmajor funds are combined in a column in the fund
financial statements and detailed in the combining section.
The County reports the following major governmental funds:
General Fund – The general fund is the general operating fund of the County. It is used
to account for all activities of the general government, except those required to be
accounted for in other funds.
Capital Projects Fund – Used to account for the costs of constructing County capital
improvements financed with general obligation bond proceeds, federal and state grants,
and general and special revenue fund revenues. The capital projects fund is used to account
for financial resources to be used for the acquisition or construction of major general
government capital facilities and infrastructure (other than those financed by proprietary
funds and trust funds) when separate project centers are needed to control costs.
Housing Agency – The Housing Agency is used to account for Federal and County moneys
used to provide public housing assistance within the County.
The County reports the following major proprietary funds:
Kula‘imano Elderly Housing Project – Used to account for the operation of a rental
housing project for low-income senior citizens located north of Hilo.
Ouli Ekahi Affordable Housing Project – Used to account for the operation of a 33-unit
single-family affordable rental housing project located in Waimea.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
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The County reports the following fiduciary funds:
Private-Purpose Trust Funds – Used to account for investment income on funds received
from import businesses at the port of Hilo and the related expenditures to promote health
and safety on the Island of Hawai‘i.
Custodial Funds – Used to account for assets held by the County for other governmental
units and individuals. The custodial funds are custodial in nature. The County has the
following custodial funds:
• State Weight Tax Fund
• Improvement District No. 18 Fund
• Improvement District No. 19 Fund
• Improvement District No. 20 Fund
• Improvement District Revolving Fund
• Performance and Refundable Deposits Fund
• Flexible Spending Account
• Lapsed Warrants Fund
• Non-Profit License Plates Fund
• Organ and Tissue Education Fund
• Business Improvement District 1-Kailua
Basis of Accounting
Basis of accounting refers to the period in which revenues and expenditures (or expenses) are
recognized in the accounts and reported in the basic financial statements. Basis of accounting
relates to the timing of the measurements made, regardless of the measurement focus applied.
The government-wide financial statements and the proprietary, fiduciary and component unit
fund financial statements are presented on an accrual basis of accounting. The governmental
funds in the fund financial statements are presented on a modified accrual basis.
Accrual Basis - Revenues are recognized when earned and expenses are recognized when the
related obligation is incurred.
Modified Accrual Basis - Revenues are recorded when susceptible to accrual (that is, both
measurable and available). "Measurable" means the amounts are determinable. "Available"
means the amounts are collectible within the current period or soon enough thereafter (one year
for intergovernmental revenues) to be used to pay liabilities of the current period.
Licenses and permits, charges for current services, fines and forfeitures, penalties and
miscellaneous revenues are recorded as revenues when received in cash because they are
generally not measurable until actually received. Real property taxes and State Revolving Fund
loan proceeds are considered available when collected.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 49 -
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and
contractual requirements of the numerous individual programs are used as guidance. There are
essentially two types of these revenues. In one, monies must be expended on the specific
purpose or project before any amounts will be paid to the County; therefore, revenues are
recognized based upon the expenditures recorded. Most construction grants and many operating
grants fall into this category. In the other, monies are virtually unrestricted as to purpose of
expenditure and are usually revocable only for failure to comply with prescribed compliance
requirements. These resources are reflected as revenues at the time of receipt or earlier if the
susceptible to accrual criteria are met.
The County reports deferred inflow of resources in its fund financial statements (see Note 6).
Deferred inflows of resources arise when potential revenue does not meet both the "measurable"
and "available" criteria for recognition in the current period. In subsequent periods, when both
revenue recognition criteria are met, the deferred inflow is removed from the fund financial
statements and revenue is recognized.
Expenditures are recognized under the modified accrual basis of accounting in the accounting
period in which the fund liability is incurred. Exceptions to this general rule include:
(a) accumulated compensated absences and claims and judgments, excluding temporary hazard
pay, which are recognized as expenditures when paid; (b) liabilities related to municipal solid
waste landfill closure and post closure care costs; (c) principal and interest on general long-term
debt which are recognized as expenditures when due; and (d) liabilities relating to pollution
remediation.
Encumbrances
The general, special revenue, and capital projects funds follow encumbrance accounting under
which purchase orders, contracts and other commitments are recorded as an obligation of fund
balance and provide authority for the carryover of appropriations to the subsequent year in order
to complete these transactions. Encumbrances outstanding at year-end are included in the
respective fund balance categories as appropriate and do not constitute expenditures or liabilities
because the commitments will be honored during the subsequent year.
Cash and Investments
Cash and cash equivalents include cash on hand, amounts in demand deposits and savings
accounts, and short-term investments with a maturity date of three months or less from the date
acquired by the County.
Investments consist of certificates of deposit, repurchase agreements, and securities with
original maturities exceeding three months. These include participating investment contracts
(U.S. government sponsored agency issues and negotiable certificates of deposit) as well as
nonparticipating investment contracts (time certificates of deposit and repurchase agreements).
Both categories of investments are stated at fair value (see Note 2). Valuations of investments
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 50 -
in government sponsored enterprises such as Federal National Mortgage Association (Fannie
Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are based on quoted market
rates. Investments also consist of equity securities in the fiduciary fund financial statements.
These investments are stated at fair value based on closing quoted prices.
Real Property Taxes
The County’s real property taxes are levied on July 1 each year on assessed valuation as of
January 1. The taxes become a lien on the property assessed as of the levy date. Taxes are due
and payable in two equal annual installments on August 20 and February 20. Accordingly, real
property taxes receivable as of June 30 are delinquent. Each delinquent installment bears
interest at 1% per month and penalties of up to 10% of the amount due. Assessments are based
on 100% of estimated fair market values prior to the application of exemptions or preferential
assessments.
The County provides real property tax abatement under five programs – Enterprise Zone,
Historic Residential Dedication, Low- and Moderate-Income Housing, Agricultural Use
Programs, and Solar Water Heater Credit:
Enterprise Zone Exemption - Section 19-89.3 of the Hawai‘i County Code provides buildings
or other like structures which are built as a result of new construction by a qualified business
within an enterprise zone to be exempt except for the minimum tax from real property taxes for
a period of three years. The purpose of this program is to stimulate business and industrial
growth. A qualified business in an enterprise zone must satisfy the requirements of Chapter 31
of the Hawai‘i County Code and section 208E, Hawaii Revised Statutes.
Historic Residential Dedication Exemption – Section 19-89.1 of the Hawai‘i County Code and
Rule 36 of the Rules and Regulations of the Director of Finance provides an exemption to
encourage the preservation of residential structures that have been placed on the Hawai‘i
Register of Historic Places after January 1, 1977. The property owner must provide visual
access on a year-round basis or open the property to the public for twelve days per year. The
owner certifies the current level of taxation is a material factor which threatens the continued
existence of the historic status. This dedication is for a minimum period of ten years,
automatically renewable indefinitely. Cancellation of the dedication by either the owner or the
Director of Finance may only be made upon five years’ written advance notice and no earlier
than the end of the fifth tax year. Any person who becomes an owner of the dedicated real
property shall be subject to the restrictions and retroactive tax assessment provisions. If the
dedication is approved, the exemption based upon the dedication shall be effective July 1 of the
tax year following the approval of the dedication. The dedicated exempt property or portion of
the property approved shall be subject to the minimum tax provisions of Section 19-90(e) of the
Hawai‘i County Code. If there is a breach in the agreement, the property would be subject to
roll back taxes, including penalty and interest.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 51 -
Low and Moderate-Income Housing Exemption – Section 19-87 of the Hawai‘i County Code
and Rule 37 of the Rules and Regulations of the Director of Finance provides an exemption for
a housing project which is owned and operated by a nonprofit or limited distribution mortgagor
or by a qualified entity from taxation. Must participate in long-term housing project that have
regulatory agreements mandating rent levels, occupancy of the project is limited to the elderly,
handicapped, low- or moderate-income families. Applicants must submit an application form
along with a copy of the recorded regulatory agreement. The exemption is equal to 100% of
the assessed value for the portion of the real property that is dedicated as low- and moderate-
income rentals. If the entire property is dedicated, then the net taxable is zero but the property
is still subject to the minimum tax per Section 19-90(e) of the Hawai‘i County Code. The
exemption shall continue so long as the rental housing project is owned and operated by a
nonprofit or limited mortgagor. If the rental units do not comply with the regulatory conditions,
the property would be subject to roll back taxes, including penalty and interest.
Non-Dedicated Agricultural Use Assessment – Section 19-57 of the Hawai‘i County Code and
Rule 34 of the Rules and Regulations of the Director of Finance reduces assessments to
encourage local agricultural production as well as the preservation of agricultural lands that
could otherwise be further developed, by valuing these lands at two times the dedicated
agricultural use value as opposed to the market value. Unlike the Dedicated Agricultural Use
program, the zoning for this program must be agricultural. An application form must be filed
along with a plot plan and provide details as to what agricultural activities are conducted on the
property. Upon review and approval, the application is effective as of January 1 for the
following tax year. Renewal of the application shall be in such form and at such time as
requested by the director. Valuation consideration is given to the type of agricultural activity.
Any breach to the terms of would result in an immediate rollback calculation of current plus
two years taxes plus penalties and interest.
Commercial Agricultural Use Dedication – Section 19-60 of the Hawai‘i County Code and
Rule 31 of the Rules and Regulations of the Director of Finance provides reduced assessments
to encourage local agricultural production as well as the preservation of agricultural lands that
could otherwise be further developed, by valuing the dedicated lands at the agricultural use
value as opposed to the market value. An application form must be filed along with a plot plan
and provide details as to what agricultural activities are conducted on the property. Upon review
and approval, the owner is required to record the dedication at the Bureau of Conveyances.
There is currently only one available dedication length which is a 10-year period, however,
previously there was a 20-year dedication. This dedication does not automatically renew.
Valuation consideration is given to the type of agricultural activity. Any breach to the terms of
the recorded dedication would result in the cancellation of the dedication, or portion thereof,
and the immediate rollback calculation of taxes plus penalties and interest.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 52 -
Solar Water Heater Credit- Section 19-104 of the Hawai‘i County Code provides a one-time
tax credit per tax map key for up to $300 for the owner of real property who installs a solar
water heater on the owner’s property on or after January 1, 2008. This program was created with
the purpose of providing an incentive to support renewable energy. The owner must apply for
the credit.
Information relevant to the disclosure of these programs for the fiscal year ended June 30, 2024,
is as follows:
Inventories
Inventories consist of materials and supplies and are reported as expenditures at the time of
consumption (consumption method). Police and fire department inventories are stated using the
first in, first out (FIFO) method. Other inventories are stated at average cost.
Liquor Control
Section 281 of the 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, 2024, of $1,560,751 are reflected as a restriction of general fund balance.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and similar
items), are reported in the applicable governmental or business-type activities columns in the
government-wide financial statements. Capital assets are defined by the County as assets with
an initial, individual cost of more than $1,000 and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value if available or if not, at
estimated fair value at the date of donation.
Tax Abatement Program
Enterprise Zone -$
Historic Residential Dedication 415,406$
Low- and Moderate-Income Housing 1,467,922$
Agricultural Use Programs 37,483,717$
Solar Water Heater Credit 58,314$
Amount of Taxes Abated -
as defined by GASB 77
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 53 -
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend the life of the asset are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed to
the extent the County’s capitalization thresholds are met.
Capital assets of the primary government and enterprise fund are depreciated or amortized using
the straight-line method over the following estimated useful lives of the assets:
Assets Years
Infrastructure 20 to 100 years
Buildings and improvements 50 to 100 years
Ground and site improvements 20 to 50 years
Equipment 5 to 40 years
Easements Dependent on terms of easement agreement
Right to use leased assets Dependent on terms of lease agreement
Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred outflows of resources represent a consumption of net assets that applies to future
periods and will not be recognized as an outflow of resources (expense or expenditure) until that
time. The County has three items that qualifies for reporting in this category. The County reports
the deferred loss on refunding and deferred outflow related to both pensions and other
postemployment benefits (OPEB) as a deferred outflow of resources in its statement of net
position.
Deferred inflows of resources represent an acquisition of net assets that applies to future periods
and will not be recognized as an inflow of resources (revenue) until that time. Property taxes,
fees, certain grants, lease rental income and other non-exchange transactions received in the
current fiscal year for the ensuing fiscal year are reported as deferred inflows of resources. These
amounts are deferred and recognized as an inflow of resources in the period that the amounts
become available. The County also reports deferred inflows of resources related to both
pensions and other postemployment benefits (OPEB).
Long-term Obligations
The County reports long-term debt of governmental funds at face value on the government-wide
statement of net position. Certain other governmental fund obligations not expected to be
financed with current available resources are also reported on the government-wide statement
of net position. Long-term debt and other obligations financed by the proprietary funds are
reported as liabilities in those funds.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 54 -
Compensated Absences
Employees earn vacation credit at the rate of one and three-quarter working days for each month
of service. Up to ninety days of vacation leave credits can be accumulated per employee. In
addition, employees who work overtime can elect to take compensatory time off instead of
overtime pay. The time off is earned at the rate of one-and-a-half hours for each hour of
overtime worked. There is no statutory limit to the amount of compensatory time off an
employee can accumulate. Both compensatory time off and vacation credits are converted to
pay upon termination of employment.
A liability for these amounts is reported in the governmental funds only if they have matured,
for example, as a result of employee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government-wide statement of net position along
with the estimated liability for social security and Medicare taxes and employers’ retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon termination of employment; therefore, there is no related liability.
However, a county employee who retires or leaves government service in good standing with
60 days or more of unused sick leave is entitled to additional service credit in the Employees’
Retirement System of the State of Hawai‘i. Accumulated sick leave at June 30, 2024, totaled
$85,072,568 for the primary government.
Leases
Lessee
The County has a policy to recognize a lease liability and a right‐of‐use lease asset (lease asset)
in the government‐wide financial statements. Variable payments based on future performance
of the lessee or usage of the underlying asset are not included in the measurement of the lease
liability.
At the commencement of a lease, the County initially measures the lease liability at the present
value of payments expected to be made during the lease term. Subsequently, the lease liability
is reduced by the principal portion of lease payments made.
Lease assets are recorded at the amount of the initial measurement of the lease liabilities and
modified by any lease payments made to the lessor at or before the commencement of the lease
term, less any lease incentives received from the lessor at or before the commencement of the
lease term along with any initial direct costs that are ancillary charges necessary to place the
lease assets into service. Lease assets are amortized using the straight‐line method over the
shorter of the lease term or the useful life of the underlying asset, unless the lease contains a
purchase option that the County has determined is reasonably certain of being exercised. In this
case, the lease asset is amortized over the useful life of the underlying asset.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 55 -
Key estimates and judgments related to leases include how the County determines (1) the
discount rate it uses to discount the expected lease payments to present value, (2) lease term,
and (3) lease payments.
• The County uses the interest rate charged by the lessor as the discount rate. When the
interest rate charged by the lessor is not provided, the County generally uses its
estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease payments
included in the measurement of the lease liability are composed of fixed payments and
purchase option price that the County is reasonably certain to exercise.
The County monitors changes in circumstances that would require a remeasurement of its lease
and will remeasure any lease asset and liability if certain changes occur that are expected to
significantly affect the amount of the lease liability.
Lease assets are reported in capital assets and lease liabilities are reported with long‐term
liabilities on the statement of net position.
Lessor
The County is a lessor for leases of real property. The County recognizes leases receivable and
deferred inflows of resources in the financial statements. Variable payments based on future
performance of the lessee or usage of the underlying asset should not be included in the
measurement of the lease receivable.
At the commencement of a lease, the County initially measures the lease receivable at the
present value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflows
of resources are initially measured as the initial amount of the lease receivable, adjusted for
lease payments received at or before the lease commencement date. Subsequently, the deferred
inflows of resources are recognized as revenue over the lease term in a systematic and rational
method.
Key estimates and judgments include how the County determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
• The County uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. Lease receipts included
in the measurement of the lease receivable is composed of fixed payments from the
lessee.
The County monitors changes in circumstances that would require a remeasurement of its lease
and will remeasure the lease receivable and deferred inflows of resources if certain changes
occur that are expected to significantly affect the amount of the lease receivable.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 56 -
Subscription‐Based Information Technology Arrangement
The County has a policy to recognize a subscription liability and a right‐of‐use subscription
asset (subscription asset) in the government‐wide financial statements. Variable payments based
on future performance of the County, usage of the underlying IT asset, or number of user seats
are not included in the measurement of the subscription liability, rather, those variable payments
are recognized as outflows of resources (expenses) in the period the obligation for those
payments is incurred.
At the commencement of a subscription‐based information technology arrangement (SBITA),
the County initially measures the subscription liability at the present value of payments expected
to be made during the subscription term. Subsequently, the subscription liability is reduced by
the principal portion of subscription payments made.
Subscription assets are recorded at the amount of the initial measurement of the subscription
liabilities, plus any payments made to the SBITA vendor before the commencement of the
subscription term and capitalizable initial implementation cost, less any incentives received
from the SBITA vendor at or before the commencement of the subscription term.
Costs associated with a SBITA, other than the subscription payments, are accounted for as
follows:
• Preliminary project stage – Outlays are expensed as incurred.
• Initial implementation stage – Outlays are capitalized as an addition to the
subscription asset.
• Operation and additional implementation stage – Outlays are expensed as incurred
unless they meet specific capitalization criteria.
Subscription assets are reported in capital assets and subscription liabilities are reported with
long‐term liabilities on the statement of net position.
Subscription assets are amortized using the straight‐line method over the shorter of the
subscription term or the useful life of the underlying IT asset, unless the subscription contains
a purchase option that the County has determined is reasonably certain of being exercised. In
this case, the subscription asset is amortized over the useful life of the underlying IT asset.
Key estimates and judgments related to SBITAs include how the County determines (1) the
discount rate it uses to discount the expected subscription payments to present value, (2)
subscription term, and (3) subscription payments.
• The County uses the interest rate charged by the SBITA vendor as the discount rate.
When the interest rate charged by the SBITA vendor is not provided, the County
generally uses its estimated incremental borrowing rate as the discount rate for
SBITAs.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 57 -
• The subscription term includes the noncancellable period of the SBITAs. Subscription
payments included in the measurement of the subscription liability are composed of
fixed payments and purchase option price that the County is reasonably certain to
exercise.
• The County monitors changes in circumstances that would require a remeasurement
of its subscription liability.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary
net position of the Employees’ Retirement System of the State of Hawai‘i (ERS) and additions
to and deductions from ERS’s fiduciary net position have been determined on the same basis as
they are reported by ERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
Other Postemployment Benefits (OPEB)
For the purposes of measuring the net OPEB liability, deferred outflows or resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about the
fiduciary net position of the Hawaii Employer-Union Health Benefits Trust Fund (“EUTF”) and
additions to/deductions from EUTF’s fiduciary net position have been determined on the same
basis as they are reported for EUTF. For this purpose, EUTF recognizes benefit payments when
due and payable in accordance with the benefit terms. Investments are reported at fair value,
except for investments in commingled and money market funds, which are reported at net asset
value (NAV). The NAV is based on the fair value of the underlying assets held by the respective
fund less its liabilities.
Operating Revenues and Expenses
Revenues and expenses are distinguished between operating and nonoperating items for the
proprietary funds. Operating revenues generally result from providing services in connection
with the proprietary funds’ principal ongoing operations. The principal operating revenues of
the proprietary funds are fees charged to residents for rent and rental subsidies received from
the federal government.
Operating expenses include the costs associated with providing housing for tenants, such as
utilities, lease rent, and maintenance and repairs; administrative expenses; and depreciation on
capital assets. All revenues and expenses not meeting these definitions are reported as
nonoperating revenues and expenses.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 58 -
Use of Estimates
The preparation of the basic financial statements in accordance with GAAP requires
management to make estimates and assumptions that affect the reported amounts of assets,
deferred outflows of resources, liabilities, and deferred inflows of resources, as well as
disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues, expenditures, and other financing sources and uses during the
reporting period. Actual results could differ from those estimates.
Fund Balances
When both restricted and unrestricted fund balances are available for use, it is the County’s
policy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts, and then unassigned
amounts when expenditures are incurred for purposes for which amounts in any of those
unrestricted fund balance classifications can be used.
The County reports the following classifications:
Nonspendable Fund Balance – Nonspendable fund balances are amounts that cannot be
spent because they are either not in spendable form, or, for legal or contractual reasons,
must be kept intact. The County has inventory and prepaids included in their nonspendable
fund balance.
Restricted Fund Balance – Constraints placed on the use of these resources are either
externally imposed by creditors (such as through debt covenants), grantors, contributors or
other governments or are imposed by law (under the Hawai‘i Revised Statutes or County
of Hawai‘i Charter).
Committed Fund Balance – Committed Fund Balances are amounts that can only be used
for specific purposes as a result of constraints imposed by the County Council via
ordinances and the County Code and can only be undone via the same manner. The
committed fund balance of the General Fund includes the portion of fund balance
committed to budget stabilization. The budget stabilization portion is authorized under
County Code §2-219 to §2-223 and additions are made via the County budget or
subsequent budget amendments. The fund balance may only be used when there is a
reduction in budgeted revenue and the director of finance determines that the extent of such
reduction necessitates the use of these funds to prevent a reduction in the level of public
services. Upon written determination by the director that such usage is necessary,
appropriations from such fund would require passage by two-thirds of the county council
as opposed to the usual simple majority.
Assigned Fund Balance – Assigned fund balances are amounts that are constrained by the
County’s intent as determined by the Mayor but are neither restricted nor committed. The
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 59 -
County’s only assigned fund balances are in the General Fund and Capital Projects Fund
and the majority consists of the portion of fund balance that is intended to balance the
subsequent year’s budget, which is conveyed by the Mayor via his approval of allotment
requests and his approval of the current year’s fund balance amount to be included in the
submittal for next year’s annual budget ordinance.
Unassigned Fund Balance – This is the residual classification of the General Fund. The
General Fund is the only fund that could potentially report a positive unassigned fund
balance.
The category of Other for the Restricted, Committed and Assigned fund balances on the
Governmental Funds Balance Sheet include funds restricted for the purposes of housing and
rental assistance; parks and recreation projects; general and public safety facilities; liquor
control; taxicab investigations; special duty officers and sewer loan programs.
Net Position
When both restricted and unrestricted net position are available for use, it is the County’s policy
to use restricted net position first, and then unrestricted net position.
In the government-wide and proprietary fund financial statements, equity is displayed in three
components as follows:
Net investment in capital assets - This consists of capital assets, net of accumulated depreciation,
less the outstanding balances of bonds, mortgages, notes, or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets.
Restricted - This consists of net position that is restricted by outside parties or by law through
constitutional provisions or enabling legislation.
Unrestricted - This consists of net position that does not meet the definition of restricted or net
investment in capital assets.
New Accounting Pronouncements
GASB Statement No. 100
The GASB issued Statement No. 100, Accounting Changes and Error Corrections – an
amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance
accounting and financial reporting requirements for accounting changes and error corrections
to provide more understandable, reliable, relevant, consistent and comparable information for
making decisions or assessing accountability. The requirements of this Statement were effective
for the County’s fiscal year ended June 2024. Management has determined that this Statement
does not have a material impact on the County’s financial statements.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 60 -
GASB Statement No. 101
The GASB issued Statement No. 101, Compensated Absences. The primary objective of the
Statement is to better meet the information needs of financial statement users by updating the
recognition and measurement guidance for compensated absences. The requirements of this
Statement are effective for reporting periods beginning after December 15, 2023. The County
has not yet determined the effect this Statement will have on its financial statements.
GASB Statement No. 102
The GASB issued Statement No. 102, Certain Risk Disclosures. The primary objective of the
Statement is to provide users of government financial statements with information about risks
related to a government’s vulnerabilities due to certain concentrations or constraints that is
essential to their analyses for making decisions or assessing accountability. The requirements
of this Statement are effective for reporting periods beginning after June 15, 2024. The County
has not yet determined the effect this Statement will have on its financial statements.
GASB Statement No. 103
The GASB issued Statement No. 103, Financial Reporting Model Improvements. The primary
objective of this Statement is to improve key components of the financial reporting model to
enhance its effectiveness in providing information that is essential for decision making and
assessing a government’s accountability. The requirements of this Statement are effective for
reporting periods beginning after June 15, 2025. The County has not yet determined the effect
this Statement will have on its financial statements.
GASB Statement No. 104
The GASB issued Statement No. 104, Disclosure of Certain Capital Assets. The primary
objective of this Statement is to improve users of government financial statements with essential
information about certain types of capital assets. The requirements of this Statement are
effective for reporting periods beginning after June 15, 2025. The County has not yet determined
the effect this Statement will have on its financial statements.
2. CASH AND INVESTMENTS
The Director of Finance is responsible for the safekeeping of all monies paid to the County.
The Director of Finance invests any monies of the County which in the Director’s judgment are
in excess of the amounts necessary for meeting the day-to-day operating needs of the County.
Under Section 46-50 of the Hawai‘i Revised Statutes, legally authorized investments include
obligations of or guaranteed by the U.S. government, obligations of the State, federally insured
savings and checking accounts, time certificates of deposit, and repurchase agreements with
federally insured financial institutions.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 61 -
Cash
The County maintains a number of checking and savings accounts for various funds and with
various financial institutions. Bank deposits are under the custody of the Director of Finance.
For financial statement reporting purposes, cash and short-term investments consist of cash and
money market accounts. Cash and short-term investments also include repurchase agreements,
certificates of deposit, and government sponsored securities with original maturities of three
months or less.
The carrying amount of the County’s deposits (cash, time certificates of deposit, and money
market accounts) as of June 30, 2024, was $706,307,956 for the primary government and
$6,054,892 for the fiduciary funds.
Information relating to bank balance, insurance and collateral of cash deposits is determined on
a county-wide basis. Total bank balances of deposits for the primary government and fiduciary
funds amounted to $737,148,622 at June 30, 2024. Of that amount, $735,045,482 represents
bank balances covered by federal deposit insurance or by collateral held by the County’s fiscal
agents in the name of the County. The remaining bank balances of $2,103,140 represent
deposits held by a management agent and were uncollateralized. Accordingly, these deposits
were exposed to custodial credit risk. Custodial credit risk is the risk that in the event of a bank
failure, the County’s deposits may not be returned to it. For checking and savings accounts,
time certificates of deposit, and repurchase agreements, the County requires, in accordance with
State statutes, that the depository banks pledge collateral based on the available bank balances
for the protection of the funds deposited. All securities pledged as collateral are held by the
County’s fiscal agents in the name of the County. The County also requires that no more than
60% of the County’s total funds available for deposit may be deposited in any one financial
institution, in accordance with State statutes.
Investments
The County holds investments both for its own benefit and on behalf of some of the fiduciary
funds. The County’s investments of funds not required for immediate payments are
predominately comprised of government sponsored securities (equivalent to the rating in U.S.
Treasuries), repurchase agreements and certificates of deposit, while the fiduciary funds also
hold equity securities.
The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs
to valuation techniques used to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (level 1) and the
lowest priority to unobservable inputs (level 3).
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 62 -
The three levels of the fair value hierarchy are described as follows:
Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities that a government can access at the measurement date. An active market is a
market in which transactions for the asset or liability take place with sufficient frequency
and volume to provide pricing information on an ongoing basis.
Level 2 – Inputs other than quoted prices included within level 1 that are observable for an
asset or liability, either directly or indirectly. If the asset or liability has a specified
(contractual) term, a level 2 input must be observable for most of the full term of the asset
or liability.
Level 2 inputs include:
• Quoted prices for similar assets or liabilities in active markets,
• Quoted prices for identical assets or liabilities in markets that are not active,
• Inputs other than quoted prices that are observable for the asset or liability,
• Inputs that are derived principally from or corroborated by observable market data
by correlation or other means.
Level 3 – Inputs are unobservable for an asset or liability.
Following is a description of the valuation techniques used by the County to measure fair value:
Government sponsored securities of $26,176,914, inclusive is debt securities of $9,894,000
in US Treasury, negotiable certificates of deposits of $62,128,511: Valued using quoted
prices at the end of the fiscal year for identical or similar assets in markets that are not
active (Level 2).
Equity securities of $2,073,074: Valued using quoted prices in active markets for identical
assets or liabilities that a government can access at the measurement date (Level 1).
The County’s investments and maturities at June 30, 2024 are as follows:
Fair Value Less than 1 1 – 5
Investments – Primary Government:
Certificates of deposit $ 62,128,511 $ 53,850,564 $ 8,277,947
Government sponsored securities 26,176,914 12,310,231 13,866,683
$ 88,305,425 $ 66,160,795 $ 22,144,630
Investments – Private-Purpose Trusts:
Equity securities $ 2,073,074 $ 2,073,074 $ -
Maturity (in years)
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 63 -
Interest Rate Risk: The County minimizes its exposure to interest rate risk by limiting the
maturities of investments to five years or less in compliance with state statute. The County’s
policy is to hold investments until maturity and does not engage in trading for capital gains.
Credit Risk: The County’s investment portfolio primarily consists of U.S. government or
agency obligations, bonds of government sponsored enterprises, time certificates of deposit and
repurchase agreements. These investments are either insured by the FDIC, secured by collateral
or carry a credit rating equivalent to U.S. Treasuries.
Custodial Risk: Custodial risk is the risk of loss from the failure of the counterparty, which is
defined as any entity that obtained an investment on behalf of the County. All of the County’s
deposits including repurchase agreements are secured by collateral which is kept by a third-
party custodian. Broker-dealers utilized by the County are members of the Securities Investor
Protection Corporation, and all investment securities are held in the County’s name.
Concentration of Credit Risk: State law limits deposits to no more than 60% of the total in any
one depository. The County seeks to further diversify its portfolio by purchasing from different
issuers, by purchasing different types of investments and by purchasing investments at different
maturities. The County also purchases its investments from a number of banks and broker-
dealers both located locally and on the mainland. As of June 30, 2024, investments were
distributed as follows: Bank of Hawaii, 18.3%; Bank of Hawaii Investments, 14.2%; Central
Pacific Bank, 13.3%; First Hawaiian Bank, 26.1%; FTN Financial, 0.6%; Hawaii National
Bank, 5%; JP Morgan Chase Bank, 1.7%; Multi Bank Securities, 1.8%; Raymond James, 0.8%;
Stiefel Nicolaus & Company, 2.6% and Territorial Savings Bank, 15.6%.
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets for the primary
government on June 30, 2024, amounted to $380,120,237.
Construction related contributions and unspent bond proceeds restricted to various capital
improvement projects and fuel tax funds received are recorded as restricted assets in the Capital
Projects Fund. Such funds totaled $154,730,058 on June 30, 2024.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to debt
service-related payments and amounted to $55,498,443.
Cash in the Highway Fund, Bikeway Fund, General Excise Tax and Beautification Fund are
restricted to costs incurred relating to highways and streets and the beautification of such items
and amounted to $91,684,167.
Cash in the Hawaii County Housing Agency and Short-term Vacation Rental Enforcement Fund
classified as restricted to provide public housing assistance and housing rules enforcement
amounted to $36,095,819.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 64 -
Cash in the Geothermal Asset Fund classified as restricted to compensating persons impacted
by geothermal energy development activities amounted to $2,576,377.
The restricted cash in the General Fund was comprised of cash restricted to costs incurred to
administer the liquor commission; cash restricted to the acquisition and maintenance of lands
or property entitlements for public outdoor recreation and education and cash and investments
restricted for disasters and emergencies. Such amounts totaled $1,560,750, $22,233,109 and
$15,468,700, respectively.
Tenant security deposits received by the County for the Kula‘imano Elderly Housing Project
and the Ouli Ekahi Affordable Housing Project are recorded as restricted assets. Such funds
amounted to $14,623 and $34,119, respectively, on June 30, 2024.
An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project
pursuant to an agreement with the Hawai‘i Housing Finance and Development Corporation,
who are the holders of the project’s note. This restricted reserve amounted to $77,361 on June
30, 2024.
3. RECEIVABLES
Receivables as of June 30, 2024, for the County’s individual major funds and other funds in the
aggregate, including the applicable allowances for uncollectible accounts, are as follows:
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 $1,345,945 for the Improvement District.
Capital Other
General Projects Housing Governmental
Fund Fund Agency Funds Total
Real property taxes 49,362,225$ -$ -$ -$ 49,362,225$
Transient Accommodations Tax 3,235,750 - - - 3,235,750
Housing fraud recovery, lease
and other housing - - 957,408 - 957,408
Accounts receivable:
Sewer - - - 3,817,376 3,817,376
Solid waste - - - 2,486,401 2,486,401
Intergovernmental 22,266,657 27,257,886 580,653 29,107,828 79,213,024
Gross receivables 74,864,632 27,257,886 1,538,061 35,411,605 139,072,184
Less: allowance for uncollectibles (10,097,734) - (271,197) (1,239,972) (11,608,903)
Net total receivables 64,766,898$ 27,257,886$ 1,266,864$ 34,171,633$ 127,463,281$
Governmental activities:
Hawaii
County
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 65 -
During fiscal years 2014 and 2015, the County also issued $448,669 and $720,331, respectively,
in general obligation bonds on behalf of Improvement District No. 19, a custodial fund. During
fiscal year 2021, the County issued $2,437,000 in general obligation bonds on behalf of
Improvement District No. 20, a custodial fund. On June 30, 2024, the outstanding balance for
the Improvement Districts of $3,726,407 is reflected in the government-wide statement of net
position as a receivable (see Note 10).
Lease Receivable
The County has entered into several agreements with third parties in which they have been given
the right to use certain assets owned by the County for specified periods of time in exchange for
monetary compensation. These assets include land and buildings, and the original terms of the
leases range from 2 to 50 years with varying payment terms and requirements. Amounts are
included in Other current and non-current on the accompanying Governmental Funds Balance
Sheet. For the fiscal year ended June 30, 2024, the County recognized $346,557 in lease revenue
and $70,236 in interest revenue.
Business-type activities:
Enterprise Funds
Accounts receivable:
Rent $ 16,373
Other 7,199
Gross receivables 23,572
Less: allowance for uncollectibles (12,110)
Net total receivables $ 11,462
Balance
July 1, 2023 Additions Deletions Balance
June 30, 2024
Due Within
One Year
Fund:
General Fund $ 922,760 $ 55,553 (69,813)$ $ 908,500 $ 76,500
Solid Waste Fund 195,183 - (126,638) 68,545 31,475
Golf Course Fund 1,400,183 - (199,086) 1,201,097 203,713
Hawaii County Housing Agency 517,562 - (37,993) 479,569 39,539
Total $ 3,035,688 $ 55,553 $ (433,530) $ 2,657,711 $ 351,227
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 66 -
The following are the lease receivable payments due in the upcoming years:
4. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30, 2024:
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.
Principal Interest
Years Ending June 30:
2025 $ 351,227 $ 61,475
2026 339,933 52,262
2027 335,950 43,585
2028 293,909 35,346
2029 184,768 29,858
2030 – 2034 704,578 108,475
2035– 2039 243,329 38,920
2040 – 2044 204,017 11,728
Total $ 2,657,711 $ 381,649
Receivable Fund Payable Fund Amount
Capital projects fund $ 52,869,440
Hawaii County Housing Agency 5,406
Other governmental funds 2,676,342
55,551,188
General fund 70
Other governmental funds 794,429
794,499
Hawaii County Housing Agency General fund 139,825
139,825
General fund 499,554
Capital projects fund 111,061
Hawaii County Housing Agency 142,017
Other governmental funds 322,676
1,075,308
Total $ 57,560,820
Other governmental funds $ 164,280
Hawaii County Housing Agency 8,235
Total $ 172,515
Enterprise funds Capital projects fund $ 65,646
Total $ 65,646
Enterprise funds
Capital projects fund
Other governmental funds
General fund
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 67 -
Transfers for the fiscal year ended June 30, 2024, consisted of the following:
The interfund transfers noted above include transfers from the General Fund to provide support
for various County programs and to provide resources for the payment of debt services. In
addition, some of the other governmental funds have made transfers to the capital projects fund
for the construction of various projects.
5. CAPITAL ASSETS
Capital asset activity for the fiscal year ended June 30, 2024, for the County was as follows:
General Fund Capital Projects
Fund
Other
Governmental
Funds
Total
Transfers in:
Capital Projects Fund 120,373$ -$ 42,841,916$ 42,962,289$
11,503,333 - - 11,503,333
Other Governmental Funds 81,230,359 28,500,000 9,181,904 118,912,263
92,854,065$ 28,500,000$ 52,023,820$ 173,377,885$
Hawaii County
Housing Agency
Transfers Out:
Balance Retirements / Balance
July 1, 2023 Additions Transfers June 30, 2024
Governmental activities:
Capital assets not being depreciated:
Land and
improvements 390,407,932$ 8,996,800$ -$ 399,404,732$
Easements 22,317,302 8,202,800 - 30,520,102
Construction work in
progress 118,274,480 75,781,380 (46,393,518) 147,662,342
Total capital assets not
being depreciated 530,999,714 92,980,980 (46,393,518) 577,587,176
Capital assets being depreciated:
Buildings and improvements 845,760,441 40,446,387 (147,790) 886,059,038
Equipment 186,244,225 22,875,674 (4,003,087) 205,116,812
Easements 456,639 - - 456,639
Infrastructure 727,938,196 8,972,475 - 736,910,671
Total capital assets
being depreciated 1,760,399,501 72,294,536 (4,150,877) 1,828,543,160
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 68 -
Balance Retirements / Balance
July 1, 2023 Additions Transfers June 30, 2024
Less accumulated depreciation for:
Buildings and improvements (194,876,326) (14,578,925) 43,625 (209,411,626)
Equipment (125,364,270) (12,296,251) 3,697,237 (133,963,284)
Easements (456,597) (29) - (456,626)
Infrastructure (442,246,489) (27,497,534) - (469,744,023)
Total accumulated
depreciation (762,943,682) (54,372,739) 3,740,862 (813,575,559)
Total capital assets being
depreciated, net 997,455,819 17,921,797 (410,015) 1,014,967,601
Capital assets being amortized:
Right of use assets:
Land 772,132 24,662 - 796,794
Buildings and improvements 20,392,380 3,507,643 - 23,900,023
Equipment 1,728,257 206,195 (453,151) 1,481,301
Total right of use assets 22,892,769 3,738,500 (453,151) 26,178,118
Less accumulated
amortization for:
Land (231,140) (8,263) - (239,403)
Buildings and improvements (3,918,123) (3,121,967) - (7,040,090)
Equipment (959,155) (202,736) 448,069 (713,822)
Total accumulated
amortization (5,108,418) (3,332,966) 448,069 (7,993,315)
Total right of use
assets, net 17,784,351 405,534 (5,082) 18,184,803
Subscription assets 4,291,773 11,648,488 - 15,940,261
Less accumulated
amortization (754,908) (1,856,924) - (2,611,832)
Total subscription
assets, net 3,536,865 9,791,564 - 13,328,429
Capital assets, net 1,549,776,749$ 121,099,875$ (46,808,615)$ 1,624,068,009$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 69 -
Balance Retirements / Balance
July 1, 2023 Additions Transfers June 30, 2024
Business-type activities:
Capital assets not being depreciated:
Land 753,877$ -$ -$ 753,877$
Construction work in
progress 105,256 - - 105,256
Total capital assets not
being depreciated 859,133 - - 859,133
Capital assets being depreciated:
Buildings and improvements 3,997,528 - - 3,997,528
Ground and site
improvements 272,850 - - 272,850
Equipment 142,640 27,941 (3,488) 167,093
Total capital assets
being depreciated 4,413,018 27,941 (3,488) 4,437,471
Less accumulated depreciation for:
Buildings and improvements (1,384,899) (109,322) - (1,494,221)
Ground and site
improvements (241,039) (4,350) - (245,389)
Equipment (100,667) (24,216) 2,781 (122,102)
Total accumulated
depreciation (1,726,605) (137,888) 2,781 (1,861,712)
Total capital assets
being depreciated, net 2,686,413 (109,947) (707) 2,575,759
Business-type activities
capital assets, net 3,545,546$ (109,947)$ (707)$ 3,434,892$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 70 -
Depreciation and amortization expense was charged to functions/programs of the primary
government as follows:
6. DEFERRED INFLOW OF RESOURCES
Deferred inflow of resources consists of the following at June 30, 2024:
Governmental activities:
Governmental activities:
General government 7,166,563$
Public safety 5,826,252
Highways and streets 29,770,435
Sanitation 8,666,670
Health, education and welfare 3,857,764
Culture and recreation 4,274,945
Total depreciation and amortization expense -
Governmental activities 59,562,629$
Business-type activities:
Kula'imano Elderly Housing Project 105,588$
Ouli Ekahi Affordable Housing Project 32,300
Total depreciation and amortization expense -
business-type activities 137,888$
General Fund
Capital Projects
Fund
Hawaii County
Housing Agency
Other
Governmental
Funds
Total
Governmental
Funds
Real property taxes 43,392,753$ -$ -$ -$ 43,392,753$
Liquor control revenue 191,620 - - - 191,620
County transient accommodations tax 2,471,029 - - - 2,471,029
Noncurrent grants - 5,153,109 - - 5,153,109
Rental income (leases) 908,500 - 479,569 1,269,642 2,657,711
Sewer revenue - - - 2,674,739 2,674,739
Solid waste revenue - - - 2,389,066 2,389,066
Housing revenue - - 274,080 - 274,080
Total presented in fund financial statements 46,963,902 5,153,109 753,649 6,333,447 59,204,107
114,837,891 - - - 114,837,891
Less: adjustments for accrual of revenues (42,500,240) (5,153,109) (274,080) (5,063,805) (52,991,234)
Total government- wide financial statements 119,301,553$ -$ 479,569$ 1,269,642$ 121,050,764$
Add: deferred inflows of resources related to pensions
& OPEB
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 71 -
7. SUBSCRIPTION-BASED INFORMATION TECHNOLOGY AGREEMENTS (SBITAs)
The County has entered into noncancellable agreements with third party vendors for the right to
use their information technology software. These agreements expire at various dates through
February 2034. These SBITAs include annual interest rates of 3.92% to 4.26%.
.
The estimated value of the right to use assets and accumulated amortization, amount to
$15,940,261 and $2,611,832, respectively and the related present value of the remaining
obligations under these agreements amounting to $12,608,743 at June 30, 2024 are included in
long-term debt.
The future minimum payments under these SBITAs at June 30, 2024 are as follows:
8. LEASES AND OTHER FINANCING ARRANGEMENTS
The County leases machinery, equipment, land, and office facilities under noncancellable
contracts in which the County has a right of use to the underlying asset expiring at various dates
through September 2043.
The County has also entered into other financing arrangements for machinery and equipment in
which the County will own the asset at the end of the lease. Such liabilities are presented with
leases and other financing arrangements on the accompanying Statement of Net position. As of
June 30, 2024, the capitalized value of the machinery and equipment and its corresponding
accumulated depreciation, which are presented in capital assets in the accompanying Statement
of Net Position, were $16,392,959 and $4,223,215, respectively. These leases and other
financing arrangements include annual interest rates of 1.01% to 4.85%.
Principal Interest
Years Ending June 30:
2025 2,171,308$ 526,339$
2026 1,608,672 438,065
2027 1,611,355 371,857
2028 1,016,122 307,462
2029 1,009,229 264,175
2030-2034 5,192,056 579,315
Total 12,608,742$ 2,487,213$
Subscription-Based
Agreement Liabilities
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 72 -
The future minimum payments under these leases on June 30, 2024, are as follows:
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill In December 2019, the County closed its landfill located in the city of Hilo.
Under state and federal requirements, the County would have to monitor and maintain this site
for thirty years from the closure date. The estimated cost of closure and postclosure is
$27,620,000, based on what it would cost to perform the required closure and postclosure care
in 2024. Actual costs may be higher due to inflation, changes in technology, or changes in
regulations. Through June 30, 2024, $23,538,000 was spent on closure and postclosure care of
the landfill. The remaining estimated liability of $4,082,000 is included in the government-
wide statement of net position. During the year ended June 30, 2024, $87,000 was spent on
closure of the landfill. The County is providing financial assurance for postclosure care and
remediation through self-insurance as explained below.
Kealakehe In October 1993, the County closed its Kealakehe landfill in Kona. Under state and
federal requirements, the County would have to monitor and maintain this site for ten years
from the closure date. However, because there is presently a subterranean fire which requires
active management, the County anticipates monitoring and maintaining the site for another 30
years. The estimated cost of closure and postclosure is $17,300,000, based on what it would
cost to perform the required closure and postclosure care in 2024. Actual costs may be higher
due to inflation, changes in technology, or changes in regulations. Through June 30, 2024,
$9,833,000 was spent on closure and postclosure care of the landfill.
The remaining estimated liability of $7,467,000 is included in the government-wide statement
of net position. During the year ended June 30, 2024, $280,000 was spent on closure of the
landfill. The County is providing financial assurance for post closure care and remediation
through self insurance as explained below.
Principal Interest Principal Interest
Years Ending June 30:
2025 3,026,495$ 190,117$ 2,680,628$ 656,221$
2026 2,314,271 127,573 2,543,076 583,908
2027 1,731,838 72,079 2,558,002 512,590
2028 1,246,789 28,625 1,676,571 450,998
2029 194,630 2,963 1,564,603 414,645
2030 - 2034 - - 6,083,783 1,414,166
2035 - 2039 - - 3,918,779 467,326
2040 - 2044 - - 768,647 51,918
Total 8,514,023$ 421,357$ 21,794,089$ 4,551,772$
Other Financing Agreement
Liabilities Lease Liabilities
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 73 -
Pu'uanahulu In May 1993, the County contracted with a private company to construct and
operate a new landfill on County land at Pu'uanahulu in West Hawai‘i. The present contract
calls for County employees to perform the daily operations of the landfill, and for the private
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terms of the contract, the County has no responsibility for remediation,
closure or postclosure care. Accordingly, no liability for this landfill is included in the County’s
financial statements.
Financial Assurance For fiscal year 2024, the County has provided for financial resources that
will be available to provide for closure, postclosure care and remediation or containment
of environmental hazards at the above landfills, except Pu‘uanahulu. The Environmental
Protection Agency’s financial assurance rules include a local government financial test
consisting of a financial component, a public notice component, and a recordkeeping
component. Local governments are required to satisfy each of the three components to pass the
annual test. Management believes that the County has satisfied each of the components of the
local government financial assurance requirements.
In fiscal year 2013, the County closed its two metal salvage facilities located near the Hilo and
Kealakehe Transfer Stations. State law requires the County to perform necessary closure
activities, including, but not limited to, the removal of all remaining solid waste and performing
appropriate site assessments and remedial activities. The estimated liability as of June 30, 2024,
of approximately $17,323,913 for the remediation costs associated with these closures is
included in the County’s financial statements and is based on closure plans prepared by a
science and engineering consultant contracted by the County, and the current value of costs
expected to be incurred. The liability could change over time due to inflation or deflation,
changes in technology, or changes in laws and regulations governing the remediation effort.
The County currently maintains and utilizes 7 underground fuel storage tanks to fuel both
official and private vehicles that are used for County business. The tanks range in size from
1,000 to 8,000 gallons. The estimated liability of $1,775,000 for the cost to check for ground
contamination and potential cleanup is included in the County’s financial statements as of June
30, 2024.
10. LONG-TERM DEBT
General Obligation Bonds
The County issues general obligation bonds to provide funds for the acquisition and construction
of major capital facilities. These bonds have been issued by the County for the primary
government, component unit activities (see Note 14) and improvement districts.
The County’s general obligation bonds are an absolute and unconditional general obligation of
the County for which its full faith and credit are pledged. The principal and interest payments
on the bonds are a first charge on the general fund of the County.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 74 -
The following is a summary of general obligation bond transactions reported in the
governmental activities section of the government-wide statement of net position for the County
for the fiscal year ended June 30, 2024:
General obligation bonds payable reported in the governmental activities section on the
government-wide statement of net position at June 30, 2024 are comprised of the following
individual issues:
Bonds Authorized Issue Amount
Bond Balance
July 1, 2023 Issues Retirements
Bond Balance
June 30, 2024
Due Within
One Year
2013 Series B 21,010,000$ 2,525,000$ -$ (2,525,000)$ -$ -$
2013 Series C 18,470,000 4,315,000 - (2,115,000) 2,200,000 2,200,000
2013 PI Series A 1,169,000 981,992 - (26,360) 955,632 27,085
2016 Series A 99,620,000 86,425,000 - (4,855,000) 81,570,000 5,105,000
2016 Series B 13,497,500 6,152,500 - (1,442,500) 4,710,000 1,507,500
2016 Series C 44,835,000 25,205,000 - (4,550,000) 20,655,000 4,785,000
2016 Series D 28,860,000 19,010,000 - (2,785,000) 16,225,000 2,930,000
2016 Series E 19,061,250 14,186,250 - (1,796,250) 12,390,000 1,886,250
2017 Series A 90,000,000 75,125,000 - (3,455,000) 71,670,000 3,620,000
2017 Series D 43,475,000 37,700,000 - (3,090,000) 34,610,000 3,245,000
2020 PI Series A 2,437,000 2,378,000 - (60,000) 2,318,000 61,000
2020 PI Series B 3,699,000 3,609,000 - (91,000) 3,518,000 92,000
2020 Series A 59,815,000 59,815,000 - (2,115,000) 57,700,000 2,220,000
2020 Series C 10,215,000 8,325,000 - (1,020,000) 7,305,000 1,068,750
2023 Series 99,000,000 99,000,000 - - 99,000,000 2,960,000
555,163,750 444,752,742 - (29,926,110) 414,826,632 31,707,585 Add unamortized
premium 102,942,590 65,835,283 - (6,140,253) 59,695,030 5,870,020
658,106,340$ 510,588,025$ -$ (36,066,363)$ 474,521,662$ 37,577,605$
Public improvement (PI) and/or refunding bonds:
2013 Series C at 4.0% to 5.0%, due through 2024 2,200,000$
2013 PI Series A at 2.75%, due through 2048 955,632
2016 Series A at 3.0% to 5.0%, due through 2035 81,570,000
2016 Refunding Series B at 3.0% to 5.0%, due through 2026 4,710,000
2016 Refunding Series C at 5.0%, due through 2027 20,655,000
2016 Refunding Series D at 5.0%, due through 2028 16,225,000
2016 Refunding Series E at 2.0% to 5.0%, due through 2029 12,390,000
2017 Series A at 5.0%, due through 2037 71,670,000
2017 Refunding Series D at 3.0% to 5.0%, due through 2032 34,610,000
2020 PI Series A at 1.125%, due through 2055 2,318,000
2020 PI Series B at 1.125%, due through 2055 3,518,000
2020 Series A at 4.0% to 5.0%, due through 2040 57,700,000
2020 Series C at 5.0%, due through 2029 7,305,000
2023 Series at 4.0% to 5.0%, due through 2043 99,000,000
Total general obligation bonds payable 414,826,632$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 75 -
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
Bond Premiums
At June 30, 2024, total unamortized bond premiums were $59,695,030, which are being
amortized over the remaining life of the respective bond issues.
Bonds Authorized and Unissued
The County Council authorized issuance of up to $187 million of general obligation bonds to
finance either specified or unspecified capital improvement projects at June 30, 2024. No such
bonds were issued as of June 30, 2024.
Community Facilities District
On March 2, 2023, the County issued Hawaii County Community Facilities District No. 1-2021
(Kaloko Heights Project) Special Tax Revenue Bonds, Series 2023, in the amount of
$13,055,000, for the purpose of financing the costs of certain public sewer line improvements
relating to the County’s Community Facilities District No. 1-2021 (Kaloko Heights Project).
Neither the full faith and credit nor the general taxing power of the County or the State of Hawaii
is pledged to the payment of these bonds. These bonds are not general obligations of the County.
Principal Interest
Years Ending June 30:
2025 31,707,585$ 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 28,061,690 12,595,321
2030 – 2034 120,442,617 45,334,236
2035 – 2039 91,020,673 19,434,700
2040 – 2044 45,111,937 4,501,966
2045 – 2049 1,222,073 127,080
2050 – 2054 1,032,000 53,359
2055 – 2056 428,000 3,611
Total 414,826,632$ 147,178,807$
Governmental Activities
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 76 -
General Obligation Bond Anticipation Notes
The following is a summary of general obligation bond anticipation note transactions reported
in the government-wide statement of net position for the County for the fiscal year ended June
30, 2024:
State Revolving Fund Loans
The County has obtained loans to assist in financing mandated wastewater projects from the
State Water Pollution Control Revolving Fund (SRF). The purpose of this revolving fund is to
provide low-interest, long-term loans and other financial assistance to the four counties in the
state to finance construction of wastewater projects. The County has twelve projects approved
for funding with these loans.
The County’s State Revolving Fund Loans are direct borrowings of the County for which its
full faith and credit are pledged. The State Revolving Fund Loans are secured by the gross
revenues of the County.
Note No. Issue Amount Balance July 1, 2023 Issues Retirements Balance June 30, 2024
Series F, Note R-1 7,500,000$ 7,500,000$ -$ (7,500,000)$ -$
Series F, Note R-2 7,500,000 7,500,000 - (7,500,000) -
Series F, Note R-12 3,000,000 3,000,000 - (3,000,000) -
Series F, Note R-13 3,000,000 3,000,000 - (3,000,000) -
Series F, Note R-14 1,000,000 1,000,000 - (1,000,000) -
Series F, Note R-15 1,000,000 1,000,000 - (1,000,000) -
Series F, Note R-16 1,000,000 1,000,000 - (1,000,000) -
Series F, Note R-17 1,000,000 1,000,000 - (1,000,000) -
Series F, Note R-18 1,000,000 1,000,000 - (1,000,000) -
Series F, Note R-19 1,000,000 1,000,000 - (1,000,000) -
Series F, Note R-20 500,000 500,000 - (500,000) -
Series F, Note R-21 500,000 500,000 - (500,000) -
Series F, Note R-22 500,000 500,000 - (500,000) -
28,500,000$ 28,500,000$ -$ (28,500,000)$ -$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 77 -
The schedule below shows the County’s SRF transactions for the fiscal year ended June 30,
2024:
The remaining loans bear interest at 0.25% to 0.50% exclusive of a 0.25% to 1.00% loan fee
and require payments through fiscal year 2044.
Debt service to maturity for disbursements to date on these projects are as follows:
Loans Authorized
Approved
Amount
Loan Balance
July 1, 2023 Additions
Retirements /
Forgiveness
Loan Balance
June 30, 2024
Due Within
One Year
Cesspool Conversion 8,363,773$ 1,584,868$ -$ $ (450,065)1,134,803$ 452,344$
Honoka‘a LCC 4,513,158 1,600,021 - (184,738) 1,415,283 185,660
Queen Lili‘uokalani 9,421,732 3,556,400 - (500,611) 3,055,789 503,112
Kalaniana‘ole 7,847,045 3,709,564 - (362,733) 3,346,831 364,544
Kealakehe WWTPAU 21,162,934 10,649,084 - (875,321) 9,773,764 877,607
North Kona 2,690,404 1,294,705 - (81,864) 1,212,841 82,480
Kealakehe Effluent Reuse 8,677,918 1,486,146 - (89,085) 1,397,061 89,978
SH Landfill Closure 23,099,553 14,757,238 - (827,287) 13,929,951 835,580
Kealakehe Scrap Metal 8,000,973 4,548,401 2,703,050 (333,965) 6,917,486 414,812
Lanihau WW Pumps 1,023,631 998,934 - (49,816) 949,118 50,441
Hilo WWTP Rehab and Replace Ph I 5,084,465 - 5,084,465 (3,889,388) 1,195,077 57,855
Hilo WWTP Rehab and Replace Ph II 8,215,477 - 4,878,979 - 4,878,979 222,418
108,101,063$ 44,185,361$ 12,666,494$ (7,644,873)$ 49,206,983$ 4,136,831$
Years Ending June 30: Principal Interest
2025 4,136,831$ 450,733$
2026 4,164,717 414,687
2027 3,963,876 378,327
2028 3,762,106 344,302
2029 3,788,509 310,799
2030 – 2034 16,389,957 1,075,120
2035 – 2039 10,682,078 420,495
2040 – 2044 2,318,909 50,547
Total 49,206,983$ 3,445,010$
Governmental Activities
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 78 -
Other General Long-Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30, 2024:
* Net of new claims liability and existing claims resolved at less than previous estimate.
Historically, the County’s general fund has been used to liquidate the majority of other long-
term liabilities, including the other post-employment benefit obligation and the compensated
absences since most employees are paid by the general fund.
Fund Balances - Debt Service Funds
The fund balance in the debt service funds at June 30, 2024 includes $49,041,570, which is
restricted for principal payments on general obligation bonds and $6,383,132, which is restricted
for the payment of interest on the bonds.
Enterprise Fund Notes, Bond and Loan Payable
On February 12, 2013, the County issued general obligation bonds on behalf of Kula‘imano
Elderly Housing Project (Project) to pay off its two notes payable to the U.S. Department of
Agriculture, Farmers Home Administration with principal and interest balances aggregating
$835,108. The Project is responsible for the debt service payment related to their portion of the
bonds, which is also secured with the County’s general obligation pledge. Because the Project
is responsible for only a portion of the total bonds issued, it was decided that the Project would
Balance
July 1, 2023 Additions* Payments
Balance
June 30, 2024
Due Within One
Year
Governmental activities:
Net pension liability
(see notes 13 and 14) 585,026,054$ 113,229,796$ (64,000,451)$ 634,255,399$ -$
Net OPEB liability
(see notes 13 and 14) 268,175,858 36,135,537 (42,910,000) 261,401,395 -
Claims and judgments
(see note 12) 42,758,950 49,085,136 (9,031,092) 82,812,994 74,560,144
Compensated absences 48,573,087 18,560,599 (16,699,154) 50,434,532 12,128,656
Leases and other financing
agreements (see note 8) 25,411,676 11,613,684 (6,717,248) 30,308,112 5,707,123
Subscription based agreement
liabilities (see note 7) 3,338,892 11,648,488 (2,378,638) 12,608,742 2,171,308
Pollution remediation
(see note 9) 17,388,676 - (64,763) 17,323,913 100,000
Landfill costs payable
(see note 9) 10,877,000 1,038,669 (366,669) 11,549,000 497,048
Underground Storage Tank
(see note 9) 1,775,000 - - 1,775,000 -
Total 1,003,325,193$ 241,311,909$ (142,168,015)$ 1,102,469,087$ 95,164,279$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 79 -
continue to present the balance as a note payable and make bond payments equivalent to its
previous monthly installment payments of $7,826 on the old notes at 5.547% interest. Under
this payment schedule, the Project will make contributions through 2025 of the bonds 2032
maturity date.
In fiscal year 2021, the County made the final scheduled principal payment of the bond and
thus, the Project now owes the County for the remainder of the contributions.
On October 29, 2012, the County assumed the loan of its lessee Ouli Ekahi Partnership with the
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 County assumed
ownership of the Ouli Ekahi project which consists of a 33 single family affordable rental
housing project.
The following is a summary of enterprise fund loan payable transactions for the fiscal year
ended June 30, 2024:
Special Assessment Bonds
The County has issued general obligation bonds on behalf of Improvement District No. 18 for
water improvements (see Note 3). These bonds were then refunded by a portion of the 2013
Series A Bonds that were issued. The Improvement District is responsible for the payment of
the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district’s share of the refunded bonds matures
annually through fiscal 2027 and bear interest at the previous rates of 4.375% to 4.75%. Total
general obligation bonds payable included in the government-wide statement of net position
were $452,775 at June 30, 2024.
The County has also issued general obligation bonds on behalf of Improvement District No. 19
for water improvements (see Note 3). The Improvement District is responsible for the payment
of the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district’s share of the refunded bonds matures
annually through fiscal 2048 and bear interest at the previous rate of 2.75%. Total general
obligation bonds payable included in the government-wide statement of net position were
$955,632 at June 30, 2024.
The County has also issued general obligation bonds on behalf of Improvement District No. 20
for sewer improvements (see Note 3). The Improvement District is responsible for the payment
of the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district’s share of the refunded bonds matures
Balance at July 1, 2023 8,090$
Deductions (8,090)
Balance at June 30, 2024 -$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 80 -
annually through fiscal 2055 and bear interest at the previous rates of 1.125%. Total general
obligation bonds payable included in the government-wide statement of net position were
$2,318,000 at June 30, 2024.
The bonds are secured by a first lien on the land benefited by the improvements and are to be
repaid from the annual assessments levied against the owners of the land. The County acts as an
agent for the property owners within the improvement districts to collect assessments receivable,
forward payments to bond-paying agents at appropriate dates and, if required, administer
foreclosure proceedings.
The following is a summary of bond transactions for Improvement District No. 18,
Coastview/Wonderview Water Improvements, No. 19, Kona Ocean View Properties
Subdivision, and No. 20, Lono Kona Sewer Project for the fiscal year ended June 30, 2024:
The following is a summary of the annual maturities for the improvement district general
obligation bonds:
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments – Contractual commitments for capital projects, expenses, and
supplies at June 30, 2024, except in the enterprise funds, are reflected in the balance sheets as a
part of the respective fund balance categories and are as follows:
Balance at July 1, 2023 3,913,659$
Deductions (187,252)
Balance at June 30, 2024 3,726,407$
Years Ending June 30: Principal Interest
2025 193,673$ 70,267$
2026 199,334 63,795
2027 206,245 57,062
2028 213,415 50,051
2029 93,190 45,705
2030 – 2034 491,868 204,508
2035 – 2039 534,673 161,391
2040 – 2044 580,937 113,710
2045 – 2049 634,073 60,840
2050 – 2054 410,000 21,150
2055 – 2056 168,999 1,893
Total 3,726,407$ 850,372$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 81 -
Contractual commitments for the enterprise funds were immaterial.
Intergovernmental revenues – The County has received federal and state grants for specific
purposes that are subject to review and audit by grantor agencies. Such audits could lead to
requests for reimbursement to the grantor agency for expenditures disallowed under terms of
the grants. In the opinion of management of the County, disallowed costs, if any, would not be
material.
Claims – Numerous claims and lawsuits have been filed against the County in the normal course
of its operations. A liability for probable losses is included on the government-wide statement
of net position (see Note 12). Although the outcome of the various claims and lawsuits is not
presently determinable, in the opinion of the County’s Corporation Counsel, the resolution of
such matters will not have a material adverse effect on the financial condition of the County.
ADA compliance – The County entered into a stipulated agreement, filed June 4, 1998, which
relates to the Department of Parks and Recreation (DPR). The first part of the agreement
required DPR to establish practices, policies, and procedures regarding its programs, and
prepare a transition plan by the middle of the year 2000. The self-evaluation and transition plan
for programs, practices and procedures was completed and approved by the County Council.
The cost impact of implementation was not material because the necessary modifications were
primarily procedural. The second part of this stipulated agreement required the reevaluation of
all County facilities for the presence of architectural barriers that prevented equal access to
persons with disabilities, which was completed and accepted by the County Council on June
30, 2000. Approximately 240 County facilities (which included non-DPR facilities) were
surveyed in this effort. The initially projected completion date for all modifications/renovations
necessary to eliminate the architectural barriers at all DPR facilities was 12 years from the date
the County Council accepted the self-evaluation. The initial (1997-2000) estimated cost of
those necessary modifications at DPR facilities was $15.1 million, which would have been
spent across the 12-year period. Funding allocated by the County over the initial few years of
facilities modifications was $17.5 million, with another $4 million of federal funding provided
through community development block grants over the next 2 years. The Department of Public
Works requested an additional $2 million a year for non-DPR County facilities’ ADA
renovation projects. Because of severe disparities that surfaced between the original ADA
projects’ scoping and construction estimates and actual scopes and costs, as well as
time/delivery issues that came into play because of necessary permits and reviews, and design
professionals’ costs that weren’t factored into the effort, the County sought relief from the Court
in the form of both a time extension and reprioritization of sites. As a result, the DPR obtained
court-approval of a modified 4-year plan wherein accessibility improvements at the then-
General Fund 22,045,071$
Capital Projects Fund 130,310,490
Hawaii County Housing Agency 1,503,225
Nonmajor Funds 31,366,654
185,225,440$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 82 -
remaining 35 park sites were required to be completed by December 31, 2016. Despite having
passed that date, the County is engaged in ongoing quarterly briefings with the plaintiff’s
attorney and the federal magistrate judge assigned to this case wherein the County apprises
plaintiff’s counsel and the court on its progress, highlighting achievements, noting procedural
and permitting concerns and delays, and constantly updating the status and completion projects
for all remaining projects. To date, the County’s progress and achievements have satisfied the
court and plaintiff’s attorney and the projected completion date for all remaining projects is
now late-2026. The balance of the unscheduled, unimproved DPR sites would be deferred
indefinitely pending separate improvement/enhancement projects that would inherently trigger
accessibility improvements due to the nature of each project’s scoping and applicable ADA
requirements. Of the 35 park sites requiring accessibility improvements under the modified 4-
year plan, plus an additional park site (Francis Wong Stadium at Ho’olulu Complex) that was
reintroduced into the transition plan via the court, 27 have been completed, 1 (‘Āhalanui) has
been permanently omitted due to lava inundation, 3 (Pa‘auilo, Kolekole, and Richardsons) have
been substantially completed and are pending contract closeout, 1 (Miloli‘i) was publicly bid
and awarded for construction but is pending its start date, , and 3 (NAS, Pāhala Pool, and Parks
Maintenance) are in active construction. The County has encumbered or spent more than $100
million on these remaining 35 projects to date. Further to this, the County has secured additional
general obligation bond funds in the amount of $5 million dedicated to the completion of the
remaining projects in the active construction or earlier phases of completion. The County had
spent $42 million for construction and design consultant costs to complete the 50 park facilities
(some having multiple ADA work being completed) prior to the development of the modified
four-year plan. Additionally, the County’s ADA Coordinator has access to an operational
account of at least $50,000 to handle requests for reasonable accommodations to assist County
departments with addressing requests concerning specialized access needs. The procedures for
these requests have been finalized and are available on the Department of Human Resources’
web page under the heading “Procedure for Requesting Modifications to County of Hawai‘i
Facilities, Programs, or Services”. Also, DPR has a Recreation Specialist who reviews and
assesses requests for reasonable accommodations involving recreational facilities and
programs, and recommends specific actions on those requests, amongst other duties.
12. RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft, damage, and destruction of
assets; errors and omissions; work-related injuries to employees; and natural disasters. County
obtains property insurance, which includes coverage on a high-deductible basis for hurricane,
flood, earthquake, and lava. It also purchases insurance coverages for flood on selected
structures, general and professional liability for emergency medical services, general liability
for lifeguards (waster safety), aviation liability for helicopter operations, retired senior volunteer
liability coverage, auto liability for both mass transit buses and subsidized police vehicles, auto
physical damage coverage for both police fleet vehicles and the Kohala Ranch fire truck, and
property insurance on specific housing projects if not covered contractually. The County is
substantially self-insured for liability and for all other exposures including workers'
compensation. As such, emphasis is on claims management and safety/risk control to protect
the public and employees and to mitigate loss costs. The liability for claims and judgments is
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 83 -
reported on the government-wide statement of net position and the majority will be liquidated
from the County’s general fund.
Liabilities are reported when it is probable that a loss has occurred, and the amount of that loss
can be reasonably estimated. These losses include an estimate of claims that have been incurred
but not reported (IBNR). Claim liabilities, including IBNR, are based on the estimated ultimate
cost of settling the claims, and include incremental costs for the hiring of special counsel and
expert witnesses. Claims liabilities are estimated by a case-by-case review of all claims and the
application of historical experience to outstanding claims. Estimates of IBNR are based on
historical experience. The liability for claims and judgments is reported on the government-
wide statement of net position. On June 30, 2024, the amount of this liability was $82,812,994.
This is the County’s best estimate based on available information.
The County has entered into one settlement agreement and is in discussions to enter into
multiple settlement agreements regarding Temporary Hazard Pay (THP) with unions for periods
covering dates from March 2020 to March 2022, for those employees who performed essential
functions during the COVID-19 pandemic. The County has estimated a liability of $70,000,000
related to THP; this amount is presented with total claims and judgments on the statement of
net position and on the governmental funds balance sheet.
Changes in the reported liability since July 1, 2022, are given below.
*Net of new claims liability and existing claims resolved at less than previous estimate.
General Workers' Total
Liability Compensation Liability
Balance at June 30, 2022 9,976,700$ 12,554,278$ 22,530,978$
Incurred claims (including IBNR)* 28,279,081 3,239,948 31,519,029
Claims payments (5,692,436) (5,598,621) (11,291,057)
Balance at June 30, 2023 32,563,345 10,195,605 42,758,950
Incurred claims (including IBNR)* 44,199,550 4,885,586 49,085,136
Claims payments (4,532,010) (4,499,082) (9,031,092)
Balance at June 30, 2024 72,230,885$ 10,582,109$ 82,812,994$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 84 -
13. EMPLOYEE BENEFIT PLANS
The County recognized a total net pension expense of $57,564,617 for the year ended June 30,
2024, for the following two pension plans covering its employees.
Pensions – Employees’ Retirement System of the State of Hawai‘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 of Hawai‘i (ERS). Benefit terms, eligibility,
and contribution requirements are established by HRS Chapter 88 and can be amended through
legislation. The ERS issues a publicly available financial report that can be obtained at ERS’s
website: http://ers.ehawaii.gov/.
Benefits Provided - The ERS provides retirement, disability, and death benefits that are covered
by the provisions of the noncontributory, contributory, and hybrid retirement plans. The three
plans provide a monthly retirement allowance equal to the benefit multiplier (generally 1.25%
or 2%) multiplied by the average final compensation multiplied by years of credited service.
The benefit multiplier decreased by 0.25% for new hybrid and contributory plan members hired
after June 30, 2012. Average final compensation is based on the five highest paid years of
service excluding the payment of salary in lieu of vacation for members hired after June 30,
2012. For those hired between January 1, 1971 and June 30, 2012, AFC is based on the three
highest paid years of service excluding the payment of salary in lieu of vacation. If the employee
was hired prior to January 1, 1971, the AFC is the average salary earned during the five highest
paid years of service, including the payment of salary in lieu of vacation, or three highest paid
years of service, excluding the payment of salary in lieu of vacation.
For members hired before July 1, 2012, the original retirement allowance is increased by 2.5%
each July 1 following the calendar year of retirement. This cumulative benefit is not
compounded and increases each year by 2.5% of the original retirement allowance without a
ceiling (2.5% of the original retirement allowance the first year, 5.0% the second year, 7.5% the
third year, etc.). For members hired after June 30, 2012 the post-retirement annuity increase was
decreased to 1.5% per year.
Retirement benefits for certain groups, such as police officers, firefighters, some investigators,
sewer workers, judges, and elected officials, vary from general employees.
Noncontributory Plan
Retirement Benefits - General employees’ retirement benefits are determined as 1.25% of
average final compensation multiplied by the years of credited service. Employees with 10
years of credited service are eligible to retire at age 62. Employees with 30 years of credited
service are eligible to retire at age 55.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 85 -
Disability Benefits - Members are eligible for service-related disability benefits regardless
of length of service and receive a lifetime pension of 35% of their average final
compensation. Ten years of credited service is required for ordinary disability. Ordinary
disability benefits are determined in the same manner as retirement benefits but are payable
immediately, without an actuarial reduction, and at a minimum of 12.5% of average final
compensation.
Death Benefits - For service-connected deaths, the surviving spouse/reciprocal beneficiary
receives a monthly benefit of 30% of the average final compensation until remarriage or
re-entry into a new reciprocal beneficiary relationship. Additional benefits are payable to
surviving dependent children up to age 18. If there is no spouse/reciprocal beneficiary or
dependent children, no benefit is payable.
Ten years of credited service is required for ordinary death benefits. For ordinary death
benefits, the surviving spouse/reciprocal beneficiary (until remarriage/reentry into a new
reciprocal beneficiary relationship) and dependent children (up to age 18) receive a benefit
equal to a percentage of member’s accrued maximum allowance unreduced for age or, if
the member was eligible for retirement at the time of death, the surviving spouse/reciprocal
beneficiary receives 100% joint and survivor lifetime pension.
Contributory Plan for Employees Hired Prior to July 1, 2012
Retirement Benefits - General employees’ retirement benefits are determined as 2% of
average final compensation multiplied by the years of credited service. General employees
with 5 years of credited service are eligible to retire at age 55.
Police and firefighters’ retirement benefits are determined as 2.5% of average final
compensation for each year of service up to a maximum of 80%. Police and firefighters
with 10 years of credited service are eligible to retire at age 55.
Disability Benefits - Members are eligible for service-related disability benefits regardless
of length of service and receive a lifetime pension of 50% of their average final
compensation. Ten years of credited service is required for ordinary disability. Ordinary
disability benefits are determined as 1.75% of average final compensation multiplied by
the years of credit services and are payable immediately, without an actuarial reduction,
and at a minimum of 30% of average final compensation.
Death Benefits - For service-connected deaths, the surviving spouse/reciprocal beneficiary
receives a lump sum payment of the member’s contributions and accrued interest plus a
monthly benefit of 50% of the average final compensation until remarriage or re-entry into
a new reciprocal beneficiary relationship. If there is no surviving spouse/reciprocal
beneficiary, surviving children (up to age 18) or dependent parents are eligible for the
monthly benefit. If there is no spouse/reciprocal beneficiary or dependent children/parents,
the ordinary death benefit is payable to the designated beneficiary.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 86 -
Ordinary death benefits are available to employees who were active at time of death with
at least 1 year of service. Ordinary death benefits consist of a lump sum payment of the
member’s contributions and accrued interest plus a percentage of the salary earned in the
12 months preceding death, or 50% Joint and Survivor lifetime pension if the member was
not eligible for retirement at the time of death but was credited with at least 10 years of
service and designated one beneficiary, or 100% Joint and Survivor lifetime pension if the
member was eligible for retirement at the time of death and designated one beneficiary.
Contributory Plan for Employees Hired After June 30, 2012
Retirement Benefits – General employees’ retirement benefits are determined as 1.75% of
average final compensation multiplied by the years of credited service. General employees
with 10 years of credited service are eligible to retire at age 60.
Police and firefighters’ retirement benefits are determined as 2.25% of average final
compensation for each year of service up to a maximum of 80%. Police and firefighters
with 10 years of credited service are eligible to retire at age 60.
Disability and Death Benefits - Members are eligible for service-related disability benefits
regardless of length of service and receive a lifetime pension of 50% of their average final
compensation plus refund of contributions and accrued interest. Ten years of credited
service is required for ordinary disability. Ordinary disability benefits are 1.75% of average
final compensation for each year of service for police and firefighters and are payable
immediately, without an actuarial reduction, at a minimum of 30% of average final
compensation.
Death benefits for contributory plan members hired after June 30, 2012 are generally the
same as those for contributory plan members hired June 30, 2012 and prior.
Hybrid Plan for Employees Hired Prior to July 1, 2012
Retirement Benefits - General employees’ retirement benefits are determined as 2% of
average final compensation multiplied by the years of credited service. General employees
with 5 years of credited service are eligible to retire at age 62. General employees with 30
years of credited service are eligible to retire at age 55.
Disability Benefits - Members are eligible for service-related disability benefits regardless
of length of service and receive a lifetime pension of 35% of their average final
compensation plus refund of their contributions and accrued interest. Ten years of credited
service is required for ordinary disability. Ordinary disability benefits are determined in
the same manner as retirement benefits but are payable immediately, without an actuarial
reduction, and at a minimum of 25% of average final compensation.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 87 -
Death Benefits - For service-connected deaths, the surviving spouse/reciprocal beneficiary
receives a lump sum payment of the member’s contributions and accrued interest plus a
monthly benefit of 50% of the average final compensation until remarriage or re-entry into
a new reciprocal beneficiary relationship. If there is no surviving spouse/reciprocal
beneficiary, surviving children (up to age 18) or dependent parents are eligible for the
monthly benefit. If there is no spouse/reciprocal beneficiary or dependent children/parents,
the ordinary death benefit is payable to the designated beneficiary.
Ordinary death benefits are available to employees who were active at time of death with
at least 5 years of service. Ordinary death benefits consist of a lump sum payment of the
member’s contributions and accrued interest multiplied by 150%, or 50% Joint and
Survivor lifetime pension if the member was not eligible for retirement at the time of death
but was credited with at least 10 years of service and designated one beneficiary, or 100%
Joint and Survivor lifetime pension if the member was eligible for retirement at the time of
death and designated one beneficiary.
Hybrid Plan for Employees Hired After June 30, 2012
Retirement Benefits - General employees’ retirement benefits are determined as 1.75% of
average final compensation multiplied by the years of credited service. General employees
with 10 years of credited service are eligible to retire at age 65. Employees with 30 years
of credited service are eligible to retire at age 60. Sewer workers, water safety officers, and
EMTs may retire with 25 years of credited service at age 55.
Disability and Death Benefits - Provisions for disability and death benefits generally
remain the same except for ordinary death benefits. Ordinary death benefits are available
to employees who were active at time of death with at least 10 years of service. Ordinary
death benefits consist of a lump sum payment of the member’s contributions and accrued
interest multiplied by 120%, or 50% Joint and Survivor lifetime pension if the member was
not eligible for retirement at the time of death and designated one beneficiary, or 100%
Joint and Survivor lifetime pension if the member was eligible for retirement at the time of
death and designated one beneficiary.
Contributions - Contributions are established by HRS Chapter 88 and may be amended through
legislation. The employer rate is set by statute based on the recommendations of the ERS actuary
resulting from an experience study conducted every five years. Since July 1, 2005, the employer
contribution rate is a fixed percentage of compensation, including the normal cost plus amounts
required to pay for the unfunded actuarial accrued liabilities. The contribution rates for fiscal
year 2023 were 41.00% for police and firefighters and 24.0% for all other employees.
Contributions to the pension plan from the County for the year ended June 30, 2024, 2023, and
2022 were $67,471,071, $63,900,644, and $61,913,089, respectively.
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 88 -
The employer is required to make all contributions for members in the noncontributory plan.
For contributory plan employees hired prior to July 1, 2012, general employees are required to
contribute 7.8% of their salary and police and firefighters are required to contribute 12.2% of
their salary. For contributory plan employees hired after June 30, 2012, general employees are
required to contribute 9.8% of their salary and police and firefighters are required to contribute
14.2% of their salary. Hybrid plan members hired prior July 1, 2012 are required to contribute
6.0% of their salary. Hybrid plan members hired after June 30, 2012 are required to contribute
8.0% of their salary.
Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows
of resources related to pensions – At June 30, 2024, the County reported a liability of
$634,255,399 for its proportionate share of the net pension liability, of which $633,449,126
represents the portion of the pension liability with ERS and $806,273 represents the Bandsmen
pension as further discussed on pages 90 and 91, respectively.
The ERS net pension liability was measured as of June 30, 2023, and the total pension liability
used to calculate the net pension liability was determined by an actuarial valuation as of that
date. The County’s proportion of the net pension liability was based on the actual employer
contributions to the pension plan relative to the contributions of all participating employers. At
June 30, 2023, the County’s proportion was 4.59%, which was an increase of .08% from its
proportion measured as of June 30, 2022.
For the year ended June 30, 2024, the County recognized pension expense of $57,564,617.
At June 30, 2024, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
$67,471,071 reported as deferred outflows of resources related to the County’s contributions to
the pension plan subsequent to the measurement date will be recognized as a reduction of the
net pension liability in the fiscal year ended June 30, 2025.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 12,066,723$ 20,081,850$
Net difference between projected and actual investment
earnings on pension plan investments 8,512,450
Changes in assumptions 1,599,901 2,711,722
Changes in proportion and differences between employer
contributions and proportionate share of contributions 25,678,784 14,767,071
County contributions subsequent to the measurement date 67,471,071 -
Total 115,328,929$ 37,560,643$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 89 -
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Actuarial assumptions – The total pension liability in the June 30, 2023 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.50%
Payroll growth rate 3.50% per annum
Salary increases 3.75% - 6.75%, including inflation
Investment rate of return 7.00% per annum, including inflation
Cost of living adjustments 2.50% / 1.50%
Mortality rates used in the actuarial valuation as of June 30, 2023 were based on the following:
Active members – Multiples of the Pub-2010, Employee Table for active employees based
on the occupation of the member.
Healthy retirees – The 2022 Public Retirees of Hawai‘i mortality table, the rates are
projected on a fully generational basis by the long-term rates of scale UMP from the year
2022 and with multiplier and setbacks based on plan and group experience.
Disabled retirees – Base Table for healthy retiree’s occupation, set forward 3 years,
generational projection using the UMP projection table from the year 2022. Minimum
mortality rate of 3.5% for males and 2.5% for females.
The actuarial assumptions used in the June 30, 2023 valuation were based on the results of an
actuarial experience study as of June 30, 2021, with most assumptions based on the period from
July 1, 2016, through June 30, 2021. The major changes to assumptions resulting from the 2021
actuarial experience study were (1) to update the base mortality tables with data through June
30, 2021 and (2) recommended a higher salary increase schedule.
The long-term expected rate of return on pension plan investments was determined using a “top
down approach” in which best-estimate ranges of expected future real rates of return (expected
returns, net of pension plan investment expense and inflation) are developed for each major
Years Ending June 30,
2025 (5,893,615)$
2026 (12,203,282)
2027 17,507,637
2028 10,281,730
2029 604,745
10,297,215$
Net Deferred Outflows
(Inflows) of Resources
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 90 -
asset class. These ranges are combined to produce the long-term expected rate of return by
weighting the expected nominal real rates of return by the target asset allocation percentage.
The target allocation and best estimates of geometric rates of return for each major asset class
are summarized in the following table:
Discount rate – The discount rate used to measure the total pension liability was 7.00%, which
was the same rate used at the prior measurement date. The projection of cash flows used to
determine the discount rate assumed that employee contributions will be made at the current
contribution rate and that contributions from the County will be made at statutorily required
rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net
position was projected to be available to make all projected future benefit payments of current
active and inactive employees. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
Sensitivity of the County’s proportionate share of the net pension liability to changes in the
discount rate – The following presents the County’s proportionate share of the net pension
liability calculated using the discount rate of 7.00%, as well as what the County’s proportionate
share of the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:
Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary
net position is available in the separately issued Employees’ Retirement System of the State of
Hawaiʻi (ERS) report that includes financial statements and required supplementary
information.
Payables to the pension plan – At June 30, 2024, the amount payable to the ERS totaled
$5,245,946, which represents the employer contribution for the second half of the month of June
2024, as required by HRS, and the excess pension cost under Act 153/SLH 2-12 HRS Section
88-100 for fiscal year ended June 30, 2024.
Strategic Allocation
(Risk-Based Classes)
Target
Allocation
Long-Term Expected
Rate of Return
Expected
Volatility*
Broad growth 62.50% 8.00% 15.80%
Diversifying Strategies 37.50%5.10% 8.50%
100.00%
* Uses an expected inflation rate of 2.10%.
1% Decrease Current Discount 1% Increase
(6.00)% (7.00)% (8.00)%
$871,836,867 $633,449,126 $436,023,039
County’s proportionate share
of the net pension liability
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 91 -
Other Pension Plans - County of Hawai‘i Bandsmen Pension System
The County also sponsors a nonqualified, governmental single employer defined benefit
pension plan for members of the County Band (County of Hawai‘i Bandsmen Pension System)
who are or were ineligible for benefits under ERS and whose employment began before June 1,
1990. Under HRS Chapter 88, the County Pension provides retirement benefits that are
computed based on the average annual salary during the last 10 years of employment with a
minimum pension amount of $50 per month. There are no assets accumulated in a trust for the
payment of benefits.
As of the valuation date of June 30, 2024, there were 13 inactive employees or beneficiaries
receiving benefits; 9 inactive employees not yet receiving benefit payments; and 4 active
members.
Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows
of resources related to pensions – At June 30, 2024, the portion of the County’s total pension
liability attributed to the Bandsmen pension was $806,273. The total pension liability was
measured as of June 30, 2024 based on an actuarial valuation as of June 30, 2024.
For the year ended June 30, 2024, the County recognized pension payments of $32,604 and a
pension benefit of $491.
Actuarial assumptions – The total pension liability in the June 30, 2024 actuarial report was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.50%
Salary increases 3.50%, including inflation
The average of the S&P Municipal Bond 20 Year High Grade and Fidelity GO AA-20 Year
published yields was evaluated to determine the discount rate. The selected rate was 4.09%.
The following presents the County’s total pension liability calculated using the discount rate of
4.09%, as well as what the County’s total pension liability would be if it were calculated using
a discount rate that is 1-percentage-point lower (3.09%) or 1-percentage-point higher (5.09%)
than the current rate:
1% Current 1%
Decrease Discount Rate Increase
(3.09%) (4.09%) (5.09%)
County’s total pension liability $ 960,908 $ 806,273 $ 741,495
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 92 -
Schedule of Changes in Total Pension Liability
Post-Retirement Benefits
In addition to providing pension benefits, the County is required by state statute (HRS Chapter
87A) to contribute to the Hawai‘i Employer-Union Health Benefits Trust Fund (the EUTF).
The EUTF is an agent, multiple-employer defined benefit plan providing certain healthcare and
life insurance benefits to all qualified retirees, active employees, their dependents and their
beneficiaries. Contributions to the plan and earnings on the plan are irrevocable, plan assets are
dedicated to providing health and other benefits to retirees, and plan assets are legally protected
from creditors. The EUTF issues an annual financial report that is available to the public that
can be obtained on EUTF’s website at https://eutf.hawaii.gov/reports.
Benefits Provided – Chapter 87A of the HRS grants the authority to establish and amend the
benefit terms to the board of trustees of the EUTF. The EUTF currently provides medical,
prescription drug, dental, vision, chiropractic, supplemental medical and prescription drug, and
group life insurance benefits for retirees and their dependents.
The following table provides a summary of the number of employees covered by the benefit
terms as of July 1, 2023.
Inactive employees or beneficiaries currently receiving benefits 1,854
Inactive employees entitled but not yet receiving benefit payments 209
Active employees 2,476
4,539
Contributions – The County’s contribution levels are established by Chapter 87A of the HRS.
The county was required to contribute 100% of the ARC starting in fiscal year 2019. The ARC
represents a level of funding that is sufficient to cover, 1) the normal cost, which is the cost of
the other postemployment benefits attributable to the current year of service; and 2) an
amortization payment, which is a catch-up payment for past service costs to fund the unfunded
Measurement year ending June 30, 2024
Total Pension Liability
Service cost 7,016$
Interest 31,819
Difference between expected and actual experience 4,006
Changes of assumptions (10,728)
Benefit payments (32,604)
Net Change in Total Pension Liability (491)
Total Pension Liability – Beginning 806,764
Total Pension Liability – Ending 806,273$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 93 -
actuarial accrued liability over the next thirty years. For the fiscal year ended June 30, 2024,
contributions to the OPEB Plan from the County totaled $44,136,000 which resulted in an
average contribution rate of approximately 20.7% of covered-employee payroll.
For employees hired prior to July 1, 1996, the County pays the entire monthly healthcare
premium for employees retiring with 10 or more years of credited service, and 50% of the
monthly premium for employees retiring with fewer than 10 years of credited service. The
current (pay-as-you-go) premium costs are paid by the respective funds but the net other
postemployment benefit obligation is paid by the General Fund.
For employees hired after June 30, 1996, and who retire with fewer than 10 years of service, the
County makes no contributions. For those retiring with at least 10 years but fewer than 15 years
of service, the County pays 50% of the retired employees’ monthly Medicare or non-Medicare
premium. For employees hired after June 30, 1996, and who retire with at least 15 years but
fewer than 25 years of service, the County pays 75% of the retired employees’ monthly
Medicare or non-Medicare premium. For those retiring with over 25 years of service, the
County pays the entire healthcare premium.
For employees hired after June 30, 2001, and who retire with fewer than 10 years of service, the
County makes no contributions. For those retiring with at least 10 years but fewer than 15 years
of service, the County pays 50% of the retired employees’ monthly Medicare or non-Medicare
premium based on the self-plan. For employees hired after June 30, 2001, and who retire with
at least 15 years but fewer than 25 years of service, the County pays 75% of the retired
employees’ monthly Medicare or non-Medicare premium; for those retiring with over 25 years
of service, the County pays the entire healthcare premium.
For active employees, the employee’s contributions are based upon negotiated collective
bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
Net OPEB liability – The County’s net OPEB liability was measured as of July 1, 2023, and the
total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of that date. There were no changes between the measurement date, July 1, 2023,
and the reporting date, June 30, 2024, that are expected to have a significant effect on the net
OPEB liability.
Actuarial assumptions – The total OPEB liability in the actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the measurement,
unless otherwise specified:
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 94 -
The actuarial assumptions used to value the liabilities are the same as those used in the valuation
report as of July 1, 2023. The assumptions include details on the health care trend assumption,
the aging factors as well as the cost method used to develop the OPEB expense. The
demographic assumptions are based on the 2022 ERS actuarial experience study. OPEB-
specific assumptions, such as the participation assumption for future retirees, health care trend,
etc. are reviewed during each valuation. There were no assumption changes during the current
measurement period.
Valuation Date: 7/1/2023
Methods and Assumptions:
Actuarial Cost Method Entry Age Normal
Discount Rate 7.00%
Inflation 2.50%
Salary Increases 3.75% to 6.75% including inflation
Demographic Assumptions
Mortality
Participation Rates
Healthcare cost trend rates
PPO* Initial rate of 6.30%, declining to a rate of 4.25% after 21 years
HMO** Initial rate of 6.30%, declining to a rate of 4.25% after 21 years
Part B & Base Monthly
Contribution (BMC) Initial rate of 5.00%, declining to a rate of 4.25% after 21 years
Dental 4.00%
Vision 2.50%
Life Insurance 0.00%
* Blended rates for medical and prescription drug
** Includes prescription drug assumptions
98% healthcare participation assumption for retirees that receive
100% of the Base Monthly Contribution (BMC). Healthcare
participation rates of 25%, 65%, and 90% for retirees that
receive 0%, 50%, or 75% of the base monthly contribution,
respectively. 100% for Life Insurance and 98% for Medicare
Part B
System- specific mortality tables utilizing ultimate scale MP2021
to project generational mortality improvement
Based on the 2022 Hawaii ERS Actuarial Experience Study, as
conducted June 30, 2021 for the Hawaii Employees’ Retirement
System (ERS)
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 95 -
A Single Discount Rate of 7.00% was used to measure the total OPEB liability. This Single
Discount Rate was based on the expected rate of return on OPEB plan investments of 7.00%.
Beginning with the FYE 2019 contribution, the funding policy of the County of Hawaii is to
pay the recommended actuarially determined contribution, which is based on layered, closed
amortization periods. In July 2020, the Governor’s office issued the Tenth Proclamation related
to the Covid-19 Emergency, allowing employers of the EUTF to suspend ACT 268
contributions for fiscal year ended June 30, 2021 and instead limit their contribution amounts
to the OPEB benefits due. This relief provision related to OPEB funding was extended to the
fiscal years ended June 30, 2022 and 2023 by Act 229, Session Laws of Hawai‘i 2021. The
EUTF’s fiduciary net position is still expected to be available to make all projected future
benefit payments of current plan members. Therefore, the long-term expected rate of return on
the EUTF’s investments was applied to all periods of projected benefit payments to determine
the total OPEB liability.
The target allocation and best estimates of arithmetic rates of return for each major asset class
are summarized in the following table:
Long-Term
Expected Real
Rate of Return
Global equity 27.50% 7.60%
Private equity 15.00% 10.00%
Real assets 12.00% 4.30%
Private Credit 10.00% 7.80%
Trend following 10.00% 2.40%
Long treasuries 5.50% 2.40%
TIPS 5.00% 2.00%
Reinsurance 5.00% 3.40%
Alternative risk premia 5.00% 3.30%
U.S. microcap 3.00% 8.70%
Tail Risk/Long Volatility 2.00% -1.10%
Global options 0.00%4.90%
100.00%
Strategic Allocation
(Risk-Based Classes)Target Allocation
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 96 -
Changes in the Net OPEB Liability:
The following schedule presents the changes in the net OPEB liability for the fiscal year ended
June 30, 2024:
There were no significant changes of assumptions from the prior year.
Sensitivity of the net OPEB liability to changes in the discount rate – The following presents
the net OPEB liability of the County, as well as what the County’s net OPEB liability would be
if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or 1-
percentage-point higher (8.00%) than the current discount rate:
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates – The
following presents the net OPEB liability of the County, as well as what the County’s net OPEB
liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-
point lower or 1-percentage-point higher than the current healthcare cost trend rate:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at June 30, 2023 571,101,431$ 302,925,573$ 268,175,858$
Changes for the fiscal year:
Service cost 12,129,999 - 12,129,999
Interest on the total OPEB liabil 39,628,250 - 39,628,250
Employer contributions - 42,910,000 (42,910,000)
Net investment income - 14,379,907 (14,379,907)
Benefit payments (22,097,136) (22,097,136) -
Administrative expense - (20,275) 20,275
Changes of assumptions - - -
Difference between expected -
and actual experience (1,076,619) - (1,076,619)
Other - 186,461 (186,461)
Net changes 28,584,494 35,358,957 (6,774,463)
Balance at June 30, 2024 $ 599,685,925 $ 338,284,530 $ 261,401,395
Increase (Decrease)
1%Current 1%
Decrease Discount Rate Increase
(6.00)%(7.00)%(8.00)%
County’s net OPEB liability 353,103,780$ 261,401,395$ 188,625,251$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 97 -
For the year ended June 30, 2024, the County recognized OPEB expense of $14,392,089. At
June 30, 2024, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
$44,136,000 reported as deferred outflows of resources related to the County’s contributions to
the OPEB plan subsequent to the measurement date will be recognized as a reduction of the net
OPEB liability in the fiscal year ended June 30, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized in OPEB expense as follows:
The EUTF issues a publicly available financial report that includes financial statements and
required supplementary information, which is available on-line at their web-site
www.eutf.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
1% 1%
Decrease Increase
County’s net OPEB liability 180,331,224$ 261,401,395$ 365,543,306$
Current
Healthcare Cost
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience 2,532,342$ 65,541,436$
Changes of assumptions 1,462,898 11,735,812
Net difference between projected and actual earnings on
OPEB plan investments 7,174,292 -
County contributions subsequent to the measurement date 44,136,000 -
Total 55,305,532$ 77,277,248$
Net deferred inflows
of resources
Years Ending June 30,
2025 (16,133,349)$
2026 (18,792,145)
2027 (10,942,123)
2028 (10,817,998)
2029 (9,245,842)
Thereafter (176,259)
(66,107,716)$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 98 -
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 of their salary until future years by contributing to a fund
managed by a plan administrator. The deferred compensation amounts are not available to
employees until termination, retirement, death, or unforeseeable emergency.
All plan assets are held in a trust fund to protect them from claims of general creditors and from
diversion to any uses other than paying benefits to participants and beneficiaries. The County
has no responsibility for loss due to the investment or failure of investment of funds and assets
in the plans but does have the duty of due care that would be required of an ordinary prudent
investor. Therefore, the deferred compensation plan assets are not reported in the accompanying
basic financial statements.
14. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30, 2024, the carrying amount of deposits (cash, time certificates of deposit, government
sponsored securities and money market funds) was $71,123,215 with corresponding bank
balance of $72,147,806. These amounts were fully insured or collateralized with securities held
by the County’s agent in the County’s name.
The following summarizes the Department’s investments and maturities at June 30, 2024:
Capital Assets
The Department began operations as of January 1, 1950. At that date, the utility plant in service
was transferred to the Department from the County at the cost of the utility plant assets acquired
by the County for its water system from January 1, 1924 to December 31, 1949, less
accumulated depreciation. Acquisitions prior to 1924 and acquisitions by gift or grant prior to
1950 are not included in utility plant. Additions to utility plant since January 1, 1950 are stated
at original cost and include contributions by governmental agencies, private subdividers and
customers at their cost or estimated cost. Construction costs include amounts for contract work,
engineering supervision and other direct and indirect costs.
Fair Value Less than 1 1 – 5
Investments – Primary Government:
Certificates of deposit $ 19,000,000 $ 17,000,000 $ 2,000,000
Government sponsored securities 6,142,976 1,552,758 4,590,218
$ 25,142,976 $ 18,552,758 $ 6,590,218
Maturity (in years)
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 99 -
Depreciation on the Department’s utility plant assets in service is computed using the
straight-line method over the estimated useful lives of the assets as follows:
The capital assets of the Department at June 30, 2024 were as follows:
Years
Distribution mains and accessories 40
Structures and improvements 40 - 50
Electric and hydraulic pumping equipment 10
Services 25
Transmission mains and accessories, hydrants, and purification system 40
Meters 10
Transportation, communication, tools, and office equipment and furniture 5
Other equipment 5 - 10
Other fire protection plant 25
Depreciable assets
Utility plant in service 612,171,792$
Less: accumulated depreciation (338,021,132)
274,150,660
Non-depreciable assets
Preliminary survey and investigation charges 1,456,452
Construction work in progress 11,763,518
Land and rights 5,787,581
19,007,551
Right of use lease assets
Land 226,050
Equipment 149,676
Less: accumulated amortization (92,503)
283,223
SBITA assets 116,096
Less: accumulated amortization (76,040)
40,056
Capital assets, net 293,481,490$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 100 -
The following is a summary of changes in capital assets during the fiscal year ended June 30,
2024.
Long-Term Debt
The County has issued general obligation bonds on behalf of the Department. The Department
is responsible for the payment of the debt service on these bonds, but the County remains liable
because they are general obligations of the County. The Department has recorded a liability for
these general obligation bonds, which amounted to $15,486,960 at June 30, 2024.
Balance Retirements/ Balance
July 1, 2023 Additions Transfers June 30, 2024
Non-depreciable assets
Land and rights 5,376,240$ 411,341$ -$ 5,787,581$
Preliminary survey and
investigation charges 1,416,107 224,425 (184,080) 1,456,452
Construction work in progress 8,689,122 11,091,579 (8,017,183) 11,763,518
Total capital assets not being
depreciated 15,481,469 11,727,345 (8,201,263) 19,007,551
Depreciable assets
Utility plant in service 603,842,375 9,626,466 (1,297,049) 612,171,792
Less accumulated depreciation (323,339,622) (16,722,126) 2,040,616 (338,021,132)
Total capital assets being
depreciated 280,502,753 (7,095,660) 743,567 274,150,660
Right of use lease assets
Land 226,050 - - 226,050
Equipment 57,470 92,206 - 149,676
283,520 92,206 - 375,726
Accumulated amortization
Land (11,252) (5,626) - (16,878)
Equipment (47,720) (27,905) - (75,625)
(58,972) (33,531) - (92,503)
Total right of use lease assets 224,548 58,675 - 283,223
SBITA assets 66,313 70,253 (20,470) 116,096
Accumulated amortization (52,198) (44,312) 20,470 (76,040)
Total SBITA assets 14,115 25,941 - 40,056
Capital assets, net 296,222,885$ 4,716,301$ (7,457,696)$ 293,481,490$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 101 -
General obligation bonds payable issued on behalf of the Department and other long-term debt
at June 30, 2024 are comprised of the following:
At June 30, 2024, future principal and interest payments for long-term debt are scheduled as
follows:
Public improvement bonds:
2008 Series A at 4.125%, due through 2043 106,960$
Public improvement refunding bonds:
2016 Series B at 3.0% to 5.0%, due through 2026 4,710,000
2016 Series E at 2.0% to 5.0%, due through 2029 4,130,000
2020 Series C & D at 5.0%, due through 2029 2,435,000
USDA Bond #R-1 at 2.0%, due through 2057 4,105,000
Revolving fund loans:
State revolving fund loans, interest up to 1.0%,
due through 2044 55,796,006
Total long-term debt 71,282,966
Add: Unamortized premium 833,646
Total 72,116,612
Less: Current portion (6,711,144)
Noncurrent portion 65,405,468$
Principal Interest Total
2025 6,448,282$ 1,342,473$ 7,790,755$
2026 6,607,328 1,168,253 7,775,581
2027 6,767,793 987,791 7,755,584
2028 5,002,708 841,758 5,844,466
2029 5,092,585 741,732 5,834,317
2030 – 2034 20,309,909 2,505,678 22,815,587
2035 – 2039 14,299,159 1,173,006 15,472,165
2040 – 2044 4,813,591 366,332 5,179,923
2045 – 2049 688,525 167,165 855,690
2050 – 2054 760,187 95,503 855,690
2055 – 2058 492,899 19,833 512,732
Total 71,282,966$ 9,409,524$ 80,692,490$
Years Ending June 30:
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 102 -
The following is a summary of changes in long-term debt during the fiscal year ended June 30,
2024:
Contributions in Aid of Construction
The Department recognized $9,174,072 of contributions in aid of construction for the fiscal year
ended June 30, 2024.
Other Long-Term Liabilities
The following is a summary of other long-term obligations transactions for the fiscal year ended
June 30, 2024:
Commitments and Contingent Liabilities
Claims and judgments – The Department maintains property, auto liability, and general liability
insurance policies. The Department remains self-insured for workers’ compensation and other
perils. The liability at June 30, 2024 for workers’ compensation claims of $624,014 was
estimated based on a combination of case-by-case review and the application of historical
experience to outstanding claims.
Construction contracts – The Department is obligated under construction contracts for the
utility plant and other projects. Such commitments totaled $24,744,016 at June 30, 2024.
Balance Balance Due Within
July 1, 2023 Additions Decreases June 30, 2024 One Year
State revolving fund loans 55,737,039$ 7,714,698$ (7,655,731)$ 55,796,006$ 3,862,922$
Public improvement
bonds 17,871,881 - (2,384,921) 15,486,960 2,585,360
Add: unamortized
premium 1,096,508 - (262,862) 833,646 262,862
Total 74,705,428$ 7,714,698$ (10,303,514)$ 72,116,612$ 6,711,144$
Balance Deductions/ Balance Due Within
July 1, 2023 Additions Payments June 30, 2024 One Year
Pension liability 30,899,325$ 910,226$ (2,535,659)$ 29,273,892$ -$
OPEB liability 7,812,470 989,874 (1,961,000) 6,841,344 -
Customers’ deposits 4,671,058 667,022 (2,361,734) 2,976,346 155,426
Accrued vacation 1,923,930 271,662 (346,445) 1,849,147 679,242
Accrued workers’ compensation 300,000 324,014 - 624,014 324,488
Leases payable 227,517 92,206 (31,624) 288,099 32,144
SBITA payable 6,980 - (3,351) 3,629 2,508
45,841,280$ 3,255,004$ (7,239,813)$ 41,856,471$ 1,193,808$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 103 -
Temporary Hazard Pay – Effective fiscal year 2024-2025, the Department of Water Supply is
anticipating payment to employees due to the settlement agreement between the County of
Hawaiʻi with the United Public Workers (UPW) and Hawaii Government Employees
Association (HGEA) to resolve the grievances regarding temporary hazard pay (“THP”) for the
employees that worked during the COVID period of March 2020 – March 2022. The
Department estimated a liability of approximately $3,100,000 related to THP, which is included
in accrued compensation in the statement of net position.
Pension Plan
Pension liabilities, pension expense, and deferred outflows of resources and deferred inflows
of resources related to pensions – At June 30, 2024, the Department reported a liability of
$29,273,892 for its proportionate share of the net pension liability. The net pension liability
was measured as of June 30, 2023, and the total pension liability used to calculate the net pension
liability was determined by an actuarial valuation as of that date. The Department’s proportion
of the net pension liability was based on a projection of the employer contributions to the
pension plan relative to projected contributions of all participating employers.
At June 30, 2023, the Department’s proportion was 0.212%, which is a decrease 0.03% from its
proportion measured as of June 30, 2022.
For the year ended June 30, 2023, the Department recognized pension expense of $1,832,139.
At June 30, 2024, the Department reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
The $2,579,303 reported as deferred outflows of resources related to the Department’s
contributions to the pension plan subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the fiscal year ended June 30, 2025.
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience 576,780$ 300,433$
Net difference between projected and actual earnings
on pension plan investments 318,627 -
Changes in assumptions 9,639 263,229
Changes in proportion and differences between employer
contributions and proportionate share of contributions 325,557 3,066,031
Department contributions subsequent to the measurement date 2,579,303 -
Total 3,809,906$ 3,629,693$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 104 -
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Sensitivity of the Department’s proportionate share of the net pension liability to changes in
the discount rate – The following presents the Department’s proportionate share of the net
pension liability calculated using the discount rate of 7.00%, as well as what its proportionate
share of the net pension liability would be if it were calculated using a discount rate that is 1-
percentage-point lower (6.00%) or 1-percentage-point higher (8.00%) than the current rate:
Pension plan fiduciary net position – Detailed information about the pension plan’s fiduciary
net position is available in the separately issued ERS ACFR that includes financial statements
and required supplementary information.
Payables to the pension plan – At June 30, 2024, the amount payable to the ERS totaled
$653,226, which represents the employer contribution for the month of June 2024 and an accrual
for excess pension costs attributed to the fiscal year, as required by HRS.
Post-Retirement Benefits Other than Pensions (OPEB)
Net OPEB liability, OPEB expense, and deferred outflows of resources and deferred inflows
of resources related to OPEB – At June 30, 2024, the Department reported a net OPEB liability
of $6,841,344. The net OPEB liability was measured as of July 1, 2023, and the total OPEB
liability used to calculate the net OPEB liability was determined by an actuarial valuation as of
that date. For the year ended June 30, 2024, the Department recognized OPEB expense of
$134,386.
Net Deferred
Outflows (Inflows)
of Resources
Year Ending June 30,
2025 (830,592)$
2026 (1,143,334)
2027 36,290
2028 (356,043)
2029 (105,411)
(2,399,090)$
1% Decrease
Current
Discount Rate 1% Increase
(6.00)% (7.00)% (8.00)%
Department’s proportionate
share of the net pension liability $ 38,941,002 $ 29,273,892 $ 21,267,861
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 105 -
At June 30, 2024 the Department reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
$2,027,000 reported as deferred outflows of resources related to the Department’s contributions
to the OPEB plan subsequent to the measurement date will be recognized as a reduction of the
net OPEB liability in the fiscal year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
-$ 4,154,281$
73,754 910,273
503,276 -
2,027,000 -
$ 2,604,030 $ 5,064,554
Changes of assumptions
Total
Net difference between projected
and actual earnings on OPEB plan
investments
Employer contributions subsequent
to the measurement date
Difference between expected and
actual experience
Net Deferred (Inflows)
of Resources
Years Ending June 30,
2025 (1,358,019)$
2026 (1,479,873)
2027 (499,964)
2028 (689,528)
2029 (389,497)
Thereafter (70,643)
(4,487,524)$
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 106 -
Changes in the Net OPEB Liability:
The following schedule presents the changes in the net OPEB liability for the fiscal year ended
June 30, 2024:
Sensitivity of the net OPEB liability to changes in the discount rate – The following presents
the net OPEB liability of the Department, as well as what the Department’s net OPEB liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00%) or
1-percentage-point higher (8.00%) than the current discount rate:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at June 30, 2023 34,900,490$ 27,088,020$ 7,812,470$
Changes for the fiscal year:
Service cost 669,524 - 669,524
Interest on the total OPEB liability 2,420,425 - 2,420,425
Employer contributions - 1,961,000 (1,961,000)
Net investment income - 1,256,994 (1,256,994)
Benefit payments (1,315,507) (1,315,507) -
Administrative expense - (1,815) 1,815
Difference between expected
and actual experience (842,089) - (842,089)
Change of assumptions - - -
Other - 2,807 (2,807)
Net changes 932,353 1,903,479 (971,126)
Balance at June 30, 2024 35,832,843$ 28,991,499$ 6,841,344$
Increase (Decrease)
1% Decrease
Current
Discount Rate 1% Increase
(6.00)% (7.00)% (8.00)%
Department’s net OPEB liability $ 12,005,010 $ 6,841,344 $ 2,691,931
COUNTY OF HAWAIʻI
Notes to the Basic Financial Statements
June 30, 2024
- 107 -
Sensitivity of the net OPEB liability to changes in the healthcare cost trend rates – The
following presents the net OPEB liability of the Department, as well as what the Department’s
net OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-
percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:
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.
1% Decrease
Current Healthcare
Cost Trend Rate 1% Increase
Department’s net OPEB liability 2,167,831$ 6,841,344$ 12,789,732$
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 108 -
Schedule of Changes in the Net OPEB Liability and Related Ratios
Last Ten Fiscal Years*
County Department
Total OPEB Liability
Service Cost $ 12,129,999 $ 669,524
Interest on the total OPEB liability 39,628,250 2,420,425
Benefit payments (22,097,136) (1,315,507)
Difference between expected and actual experience (1,076,619) (842,089)
Net change in total OPEB liability 28,584,494 932,353
Total OPEB liability - Beginning 571,101,431 34,900,490
Total OPEB liability - Ending $ 599,685,925 $ 35,832,843
Plan fiduciary net position
Contributions - employer $ 42,910,000 $ 1,961,000
Net investment income 14,379,907 1,256,994
Benefit payments (22,097,136) (1,315,507)
Administrative expense (20,275) (1,815)
Other 186,461 2,807
Net change in plan fiduciary net position 35,358,957 1,903,479
Plan fiduciary net position - Beginning 302,925,573 27,088,020
Plan fiduciary net position - Ending $ 338,284,530 $ 28,991,499
Net OPEB liability $ 261,401,395 $ 6,841,344
Plan fiduciary net position as a percentage of
the total OPEB liability 56.4% 80.9%
Covered-employee payroll $ 207,585,949 $ 10,513,239
Net OPEB liability as a percentage of
Covered-employee payroll 125.9% 65.1%
2024
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 109 -
County Department
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 601,313,413 37,105,421
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 (5,410,114) (518,406)
Benefit payments (19,891,212) (1,213,715)
Administrative expense (24,126) (2,283)
Other 1,910 20,789
Net change in plan fiduciary net position 13,115,853 434,385
Plan fiduciary net position - Beginning 289,809,720 26,653,635
Plan fiduciary net position - Ending $ 302,925,573 $ 27,088,020
Net OPEB 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 OPEB liability as a percentage of
Covered-employee payroll 136.9% 75.7%
2023
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 110 -
County Department
Total OPEB Liability
Service Cost $ 12,764,228 $ 762,769
Interest on the total OPEB liability 40,832,661 2,456,079
Benefit payments (19,280,575) (1,063,301)
Difference between expected and actual experience (19,584,810) (287,233)
Net change in total OPEB liability 14,731,504 1,868,314
Total OPEB liability - Beginning 586,581,909 35,237,107
Total OPEB liability - Ending $ 601,313,413 $ 37,105,421
Plan fiduciary net position
Contributions - employer $ 38,334,627 $ 1,210,523
Net investment income 57,339,331 5,666,092
Benefit payments (19,280,575) (1,063,301)
Administrative expense (29,421) (2,922)
Other (170,462) (50)
Net change in plan fiduciary net position 76,193,500 5,810,342
Plan fiduciary net position - Beginning 213,616,220 20,843,293
Plan fiduciary net position - Ending $ 289,809,720 $ 26,653,635
Net OPEB liability $ 311,503,693 $ 10,451,786
Plan fiduciary net position as a percentage of the total OPEB liability 48.20% 71.80%
Covered-employee payroll $ 197,978,022 $ 10,713,826
Net OPEB liability as a percentage of Covered-employee payroll 157.30% 97.60%
2022
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 111 -
County Department
Total OPEB Liability
Service Cost $ 13,182,551 $ 773,607
Interest on the total OPEB liability 41,412,243 2,483,573
Benefit payments (19,277,123) (1,036,438)
Difference between expected and actual experience (39,988,932) (2,403,748)
Change in assumptions (3,397,584) (190,921)
Net change in total OPEB liability (8,068,845) (373,927)
Total OPEB liability - Beginning 594,650,754 35,611,034
Total OPEB liability - Ending $ 586,581,909 $ 35,237,107
Plan fiduciary net position
Contributions - employer $ 41,604,474 $ 1,977,000
Net investment income 3,806,539 376,721
Benefit payments (19,277,123) (1,036,438)
Administrative expense (29,192) (3,013)
Other 127,017 (2,264)
Net change in plan fiduciary net position 26,231,715 1,312,006
Plan fiduciary net position - Beginning 187,384,505 19,531,287
Plan fiduciary net position - Ending $ 213,616,220 $ 20,843,293
Net OPEB liability $ 372,965,689 $ 14,393,814
Plan fiduciary net position as a percentage of the total OPEB liability 36.40% 59.20%
Covered-employee payroll $ 189,053,873 $ 10,266,331
Net OPEB liability as a percentage of Covered-employee payroll 197.40% 140.20%
2021
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 112 -
County Department
Total OPEB Liability
Service Cost $ 12,402,599 $ 746,672
Interest on the total OPEB liability 38,381,475 2,349,959
Benefit payments (18,651,726) (1,012,084)
Difference between expected and actual experience 9,224,217 (314,598)
Changes in assumptions 1,862,836 137,542
Net change in total OPEB liability 43,219,401 1,907,491
Total OPEB liability - Beginning 551,431,353 33,703,543
Total OPEB liability - Ending $ 594,650,754 $ 35,611,034
Plan fiduciary net position
Contributions - employer $ 39,770,000 $ 1,990,000
Net investment income 7,187,610 764,696
Benefit payments (18,651,726) (1,012,084)
Administrative expense (49,623) (5,493)
Other 8,531,701 522,371
Net change in plan fiduciary net position 36,787,962 2,259,490
Plan fiduciary net position - Beginning 150,596,543 17,271,797
Plan fiduciary net position - 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 total OPEB liability 31.50% 54.90%
Covered-employee payroll $ 185,575,775 $ 10,264,425
Net OPEB liability as a percentage of Covered-employee payroll 219.50% 156.70%
2020
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 113 -
County Department
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) (1,016,548)
Difference between expected and actual experience (3,679,099) (1,184,347)
Changes in assumptions 7,240,956 432,233
Net change in total OPEB liability 33,656,439 1,193,988
Total OPEB liability - Beginning 517,774,914 32,509,555
Total OPEB liability - Ending $ 551,431,353 $ 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 27.30% 51.30%
Covered-employee payroll $ 178,889,344 $ 10,212,595
Net OPEB liability as a percentage of Covered-employee payroll 224.10% 160.90%
2019
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 114 -
* This schedule is intended to present information for ten years, as of the measurement date of the
collective net OPEB liability for each respective fiscal year. Additional years will be built
prospectively as information becomes available.
See accompanying notes to required supplementary information.
County Department
Total OPEB Liability
Service Cost $ 11,757,502 $ 687,414
Interest on the total OPEB liability 34,046,407 2,135,490
Benefit payments (17,054,987) (953,288)
Net change in total OPEB liability 28,748,922 1,869,616
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
Net investment income 10,380,705 1,245,946
Benefit payments (17,054,987) (953,288)
Administrative expense (23,228) (2,782)
Other 266,457 16,370
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 $ 400,834,810 $ 17,265,728
Plan fiduciary net position as a percentage of the total OPEB liability 24.40% 46.90%
Covered-employee payroll $ 172,678,405 $ 9,791,132
Net OPEB liability as a percentage of Covered-employee payroll 226.70% 176.34%
2018
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 115 -
Schedule of Contributions (OPEB)
Last Ten Fiscal Years
* Revised from prior ACFR.
See accompanying notes to required supplementary information.
County:
Fiscal Year
Ended
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered-
Employee
Payroll
Contributions as a
% of Covered
Employee Payroll
June 30, 2024 44,136,000$ 44,136,000$ -$ 224,626,088$ 19.6%
June 30, 2023 42,910,000$ 42,910,000$ -$ 207,585,949$ 20.7%
June 30, 2022 45,147,000$ 38,439,395$ 6,707,605$ 195,866,428$ 19.6%
June 30, 2021 42,917,000$ 38,181,347$ 4,735,653$ 197,978,022$ 19.3%
June 30, 2020 41,464,000$ 41,604,474$ (140,474)$ 189,053,873$ 22.0%
June 30, 2019 39,770,000$ 39,770,000$ -$ 185,575,775$ 21.4%
June 30, 2018 37,748,000$ 32,829,013$ 4,918,987$ 178,889,344$ 21.1%
June 30, 2017 36,472,000$ 28,549,987$ 7,922,013$ 172,678,405$ 21.1%
June 30, 2016 33,614,000$ 22,747,340$ 10,866,660$ 159,744,324$ 14.2%
June 30, 2015 32,478,000$ 18,657,000$ 13,821,000$ 152,490,296$ 12.2%
Department:
Fiscal Year
Ended
Actuarially
Determined
Contribution
Contributions in
Relation to the
Actuarially
Determined
Contribution
Contribution
Deficiency
(Excess)
Covered-
Employee
Payroll
Contributions as a
% of Covered
Employee Payroll
June 30, 2024 2,027,000$ 2,027,000$ -$ 10,900,000$ 18.6%
June 30, 2023 1,961,000$ 1,961,000$ -$ 10,513,239$ 18.7%*
June 30, 2022 2,148,000$ 2,148,000$ -$ 10,326,292$ 20.8%*
June 30, 2021 2,046,000$ 1,210,523$ $ 835,477 10,713,826$ 11.3%
June 30, 2020 1,977,000$ 1,977,000$ -$ 10,266,331$ 19.3%
June 30, 2019 1,990,000$ 1,990,000$ -$ 10,264,425$ 19.4%
June 30, 2018 1,933,000$ 1,936,548$ (3,548)$ 10,212,595$ 19.0%
June 30, 2017 1,867,000$ 1,867,788$ (788)$ 9,791,132$ 19.1%
June 30, 2016 1,914,000$ 1,913,204$ 796$ 9,464,649$ 20.2%
June 30, 2015 1,850,000$ 1,848,389$ 1,611$ 9,426,509$ 19.6%
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 116 -
Note – Significant Methods and Assumptions
Beginning July 1, 2017, an actuarial valuation of the County’s and Department’s liability associated
with other postemployment benefits other than pension provided through the EUTF is performed as
of July 1 of each year.
The following summarizes the significant methods and assumptions used to determine the actuarially
determined contribution for the fiscal year ended June 30, 2024:
Actuarial valuation date Developed in the July 1, 2021, valuation
Actuarial cost method Entry Age Normal
Amortization method Level percent, closed
Equivalent single amortization period 15.4 and 14.9 for the County and Department,
respectively, as of June 30, 2024
Asset valuation method 4-year smoothed market
Inflation rate 2.50%
Investment rate of return 7.00%
Payroll growth 3.50%
Salary increases 3.50% to 7.00% including inflation
Healthcare cost trend rates
PPO Initial rates of 7.25%; declining to a rate of 4.70%
after 12 years
HMO Initial rate of 7.25%; declining to a rate of 4.70%
after 12 years
Part B Initial rate of 5.00%; declining to a rate of 4.70%
after 9 years
Dental 4.00%
Vision 2.50%
Life Insurance 0.00%
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 117 -
Demographic assumptions Based on the experience study covering the five
year period ending June 30, 2018 conducted for
the Hawaii Employees’ Retirement System
Mortality System-specific mortality tables utilizing scale
BB to project generational mortality
improvement
Participation rates 98% healthcare participation assumption for
retirees that receive 100% of the Base Monthly
Compensation. Healthcare participation rates of
25%, 65%, and 90% for retirees that receive 0%,
50%, or 75% of the base monthly contribution,
respectively. 100% for life insurance and 98% for
Medicare Part B.
There were no other factors that significantly affected trends in the amounts reported in the
schedule of changes in the net OPEB liability and related ratios or the schedule of contributions
(OPEB).
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 118 -
Schedule of the County’s and Department’s Proportionate Share
of the Net Pension Liability (ERS)
Last Ten Fiscal Years
See accompanying notes to required supplementary information.
County:
Measurement
Period Ended
County’s
Proportion of the
Net Pension
Liability (%)
County’s
Proportionate Share
of the Net Pension
Liability ($)
County’s Covered
Payroll
Proportionate Share
of the Net Pension
Liability as a % of
Covered Payroll
Plan Fiduciary
Net Position as
a % of the Total
Pension Liability
June 30, 2023 4.6% 633,449,216$ 192,711,324$ 328.70% 61.9%
June 30, 2022 4.5% 584,219,290$ 183,409,868$ 318.50% 62.8%
June 30, 2021 4.6% 565,147,246$ 186,778,076$ 302.60% 64.3%
June 30, 2020 4.5% 696,251,655$ 180,285,326$ 386.20% 53.2%
June 30, 2019 4.7% 668,213,164$ 172,197,101$ 388.10% 54.9%
June 30, 2018 4.8% 635,693,501$ 168,484,880$ 377.30% 55.5%
June 30, 2017 4.7% 609,904,199$ 163,626,447$ 372.70% 54.8%
June 30, 2016 4.6% 618,129,088$ 156,556,514$ 394.80% 51.2%
June 30, 2015 4.4% 382,070,813$ 149,760,317$ 255.10% 62.4%
June 30, 2014 4.0% 322,626,262$ 137,669,418$ 234.30% 63.9%
Department:
Measurement
Period Ended
Department’s
Proportion of the
Net Pension
Liability (%)
Department’s
Proportionate Share
of the Net Pension
Liability ($)
Department’s
Covered Payroll
Proportionate Share
of the Net Pension
Liability as a % of
Covered Payroll
Plan Fiduciary
Net Position as
a % of the Total
Pension Liability
June 30, 2023 0.2% $ 29,273,892 $ 10,802,083 271.00% 61.9%
June 30, 2022 0.2% $ 30,899,325 $ 10,450,084 295.70% 62.8%
June 30, 2021 0.2% $ 29,017,165 $ 11,016,038 263.40% 64.3%
June 30, 2020 0.2% $ 35,290,257 $ 10,439,473 338.00% 53.2%
June 30, 2019 0.2% $ 32,029,248 $ 10,318,136 310.40% 54.9%
June 30, 2018 0.3% $ 33,522,053 $ 9,742,400 344.10% 55.5%
June 30, 2017 0.2% $ 28,365,453 $ 9,358,187 303.10% 54.8%
June 30, 2016 0.2% $ 29,247,607 $ 9,046,930 323.30% 51.2%
June 30, 2015 0.2% $ 18,940,065 $ 9,012,196 210.20% 62.4%
June 30, 2014 0.3% $ 20,526,993 $ 8,272,307 248.10% 63.9%
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 119 -
Schedule of the Employer Pension Contributions (ERS)
Last Ten Fiscal Years
See accompanying notes to required supplementary information.
County:
Fiscal Year
Ended
Statutorily
Required
Contribution
Actual County
Contributions
Recognized by the
Plan
Contribution
Deficiency
(Excess)
County’s Covered
Payroll
Contributions as a
% of Covered
Payroll
June 30, 2024 67,471,071$ 67,471,071$ -$ $ 224,626,088 30.0%
June 30, 2023 63,900,644$ 63,900,644$ -$ 192,711,324$ 33.2%
June 30, 2022 61,913,089$ 61,913,089$ -$ 183,409,868$ 33.8%
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, 2017 36,157,981$ 36,157,981$ -$ 163,626,447$ 22.1%
June 30, 2016 34,013,001$ 34,013,001$ -$ 156,556,514$ 21.7%
June 30, 2015 31,456,148$ 31,456,148$ -$ 149,760,317$ 21.0%
Department:
Fiscal Year
Ended
Statutorily
Required
Contribution
Actual County
Contributions
Recognized by the
Plan
Contribution
Deficiency
(Excess)
Department’s
Covered Payroll
Contributions as a
% of Covered
Payroll
June 30, 2024 2,579,303$ 2,579,303$ -$ $ 11,175,965 23.1%
June 30, 2023 2,535,659$ 2,535,659$ -$ 10,802,083$ 23.5%
June 30, 2022 2,477,404$ 2,477,404$ -$ 10,450,084$ 23.7%
June 30, 2021 2,579,631$ 2,579,631$ -$ 11,016,038$ 23.4%
June 30, 2020 2,258,593$ 2,258,593$ -$ 10,439,473$ 21.6%
June 30, 2019 1,950,358$ 1,950,358$ -$ 10,318,136$ 18.9%
June 30, 2018 1,757,461$ 1,757,461$ -$ 9,742,400$ 18.0%
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%
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 120 -
Note – Changes of Assumptions
The following changes were made to the actuarial assumptions as of June 30, 2024, based on the
2021 Experience Study:
• During the measurement period, the demographic assumptions were updated to reflect the
2022 ERS Actuarial Experience Study.
• Additionally, short-term healthcare trend assumptions were updated.
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 121 -
Schedule of Changes in Total Pension Liability (Bandsmen Pension)
Last Ten Fiscal Years*
Measurement year ending June 30, 2024 2023 2022
Total Pension Liability
Service Cost 7,016$ 6,747$ 11,943$
Interest on the Total Pension Liability 31,819 30,680 21,813
Differences between expected and actual experience 4,006 (7,564) (68,212)
Assumption Changes (10,728) (31,700) (230,048)
Benefit Payments (32,604) (32,185) (37,713)
Net Change in Total Pension Liability (491) (34,022) (302,217)
Total Pension Liability – Beginning 806,764 840,786 1,143,003
Total Pension Liability – Ending 806,273$ 806,764$ 840,786$
Covered Payroll $29,206 $28,813 $22,729
Total Pension Liability as a Percentage of Covered
Employee Payroll 2760.6% 2800.0% 3699.2%
Measurement year ending June 30, 2021 2020 2019
Total Pension Liability
Service Cost 145,450$ 7,577$ 7,392$
Interest on the Total Pension Liability 28,152 29,250 38,149
Differences between expected and actual experience (70,480) - (89,947)
Assumption Changes 58,659 87,065 (44,293)
Benefit Payments (44,799) (49,612) (47,532)
Net Change in Total Pension Liability 116,982 74,280 (136,231)
Total Pension Liability – Beginning 1,026,021 951,741 1,087,972
Total Pension Liability – Ending 1,143,003$ 1,026,021$ 951,741$
Covered Payroll $24,076 $26,349 $26,349
Total Pension Liability as a Percentage of Covered
Employee Payroll 4747.5% 3894.0% 3612.1%
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 122 -
* This schedule is intended to present information for 10 years, as of the measurement date of the
total pension liability for each respective fiscal year. Additional years will be built prospectively as
information becomes available. There are no assets accumulated in a trust for the payment of
benefits.
Measurement year ending June 30, 2018 2017
Total Pension Liability
Service Cost -$ 16,416$
Interest on the Total Pension Liability - 36,289
Differences between expected and actual experience - -
Assumption Changes - (113,807)
Benefit Payments (58,808) (53,347)
Net Change in Total Pension Liability (58,808) (114,449)
Total Pension Liability – Beginning 1,146,780 1,261,229
Total Pension Liability – Ending 1,087,972$ 1,146,780$
Covered Payroll $49,505 $49,505
Total Pension Liability as a Percentage of Covered
Employee Payroll 2197.7% 2316.5%
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Taxes and assessments:
Property taxes 453,750,000$ 455,250,000$ 482,922,149$ 27,672,149$
Public service company taxes 8,400,000 8,400,000 10,302,928 1,902,928
County transient accomodation tax 24,000,000 24,000,000 34,038,515 10,038,515
Total taxes and assessments 486,150,000 487,650,000 527,263,592 39,613,592
Licenses and permits:
Nonbusiness licenses and permits 5,512,652 5,512,651 6,088,879 576,228
Business licenses 2,336,123 2,336,123 2,149,946 (186,177)
Street use 3,182,763 3,182,763 3,419,320 236,557
Total licenses and permits 11,031,538 11,031,537 11,658,145 626,608
Intergovernmental:
Federal:
Programs for the aged 2,646,904 2,646,904 2,468,739 (178,165)
Community development block grants 200,000 200,000 200,000 -
Law enforcement 5,052,768 5,994,266 2,854,445 (3,139,821)
Other 19,691,009 23,238,039 7,508,973 (15,729,066)
Total federal 27,590,681 32,079,209 13,032,157 (19,047,052)
State:
Emergency medical services 24,944,904 25,562,606 25,562,606 -
Other 10,021,264 11,053,059 7,904,239 (3,148,820)
Total State 34,966,168 36,615,665 33,466,845 (3,148,820)
Total intergovernmental revenue 62,556,849 68,694,874 46,499,002 (22,195,872)
Charges for services:
General government 4,912,955 4,912,955 4,043,055 (869,900)
Culture and recreation 1,366,486 1,421,486 1,345,726 (75,760)
Highways and streets 15,000 15,000 15,423 423
Public safety 82,400 82,400 117,728 35,328
Total charges for services 6,376,841 6,431,841 5,521,932 (909,909)
Fines and forfeitures 2,171,300 2,171,300 990,187 (1,181,113)
Rents 153,500 153,500 147,554 (5,946)
(Continued)
COUNTY OF HAWAIʻI
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
- 123 -
COUNTY OF HAWAIʻI
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues (continued):
Interest and penalties 2,500,000$ 2,500,000$ 24,807,282$ 22,307,282$
Miscellaneous 4,312,306 4,472,306 4,079,674 (392,632)
Total revenues 575,252,334 583,105,358 620,967,368 37,862,010
Expenditures:
Current:
General government:
Finance 20,692,862 20,692,862 16,089,874 4,602,988
General government building 11,346,742 11,399,742 10,045,843 1,353,899
Legislative 5,041,782 4,157,827 3,568,868 588,959
Automotive equipment 5,720,376 5,586,473 4,771,929 814,544
Law 4,163,579 4,163,579 3,756,506 407,073
Research and development 4,089,298 7,594,940 7,114,427 480,513
Planning and zoning 5,050,324 5,125,324 4,011,559 1,113,765
Mayor's office 2,020,563 1,951,493 1,635,513 315,980
Engineering 1,071,274 1,073,914 1,010,054 63,860
Information technology 9,645,656 9,645,656 7,353,995 2,291,661
Human resources 3,796,168 3,796,168 2,388,310 1,407,858
Public works administration 2,102,340 2,132,340 1,906,008 226,332
Elections 1,053,022 1,053,022 702,183 350,839
County auditor 1,011,126 1,011,126 947,085 64,041
Sustainability, climate, equity and resilience 619,326 627,346 154,812 472,534
Total general government 77,424,438 80,011,812 65,456,966 14,554,846
Public safety:
Police department 86,364,493 86,785,468 80,111,706 6,673,762
Fire department 70,058,647 71,253,489 67,736,367 3,517,122
Prosecuting attorney 12,920,262 13,987,681 10,153,876 3,833,805
Protective inspection 4,317,035 4,401,395 3,607,187 794,208
Liquor control 2,367,123 2,650,108 2,311,927 338,181
Flood control 330,000 330,000 330,000 -
Civil defense agency 3,048,853 3,247,603 2,620,327 627,276
Animal control 3,603,325 3,636,355 3,313,054 323,301
Total public safety 183,009,738 186,292,099 170,184,444 16,107,655
Highways and streets:
Mass transit 14,664,039 14,664,039 275,121 14,388,918
(Continued)
- 124 -
COUNTY OF HAWAIʻI
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Expenditures (continued):
Current (continued):
Health, education and welfare:
Elderly activities 4,179,038$ 4,401,883$ 3,616,174$ 785,709$
Office of aging 4,800,886 4,819,886 3,543,617 1,276,269
Education 52,650 52,650 35,036 17,614
Social programs 2,500,000 2,500,000 2,472,500 27,500
Homelessness 11,100,000 11,100,000 10,494,813 605,187
Cemeteries 512,167 519,347 387,748 131,599
Physical examination 133,826 202,896 202,896 -
Total health, education and welfare 23,278,567 23,596,662 20,752,784 2,843,878
Culture and recreation:
Community music 409,805 453,600 383,835 69,765
Organized recreation:
Maintenance 18,214,634 18,081,134 17,066,867 1,014,267
Recreation 3,756,549 3,768,649 3,324,663 443,986
Aquatics 3,086,756 2,995,256 2,425,711 569,545
Hoolulu park complex 1,280,658 1,339,658 1,329,571 10,087
Administration 3,675,247 3,682,504 3,541,793 140,711
Children's zoo 994,804 1,026,804 1,018,661 8,143
Summer/Intersession 594,052 605,452 372,759 232,693
Culture and arts 429,600 453,300 433,007 20,293
Elderly activities administration 961,054 1,028,674 899,451 129,223
Total culture and recreation 33,403,159 33,435,031 30,796,318 2,638,713
Sanitation:
Environmental management 2,028,659 2,032,899 1,192,515 840,384
Pension and retirement contributions 74,617,064 74,760,758 67,340,109 7,420,649
Employees' health insurance 21,566,498 21,566,498 19,378,658 2,187,840
Other postemployment benefits 44,136,000 44,136,000 44,037,878 98,122
Other 24,057,463 23,759,179 7,808,756 15,950,423
Total current 498,185,625 504,254,977 427,223,549 77,031,428
(Continued)
- 125 -
COUNTY OF HAWAIʻI
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
Required Supplementary Information (Unaudited)
(Concluded)
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Expenditures (continued):
Capital Outlay:
Community Development Block
grants (HUD) 350,000$ 500,000$ (40,319)$ 540,319$
HOME Program 200,000 205,000 - 205,000
Total capital outlay 550,000 705,000 (40,319) 745,319
Total expenditures 498,735,625 504,959,977 427,183,230 77,776,747
Excess of revenues over expenditures 76,516,709 78,145,381 193,784,138 115,638,757
Other financing uses:
Transfers out:
Housing Fund (11,495,033) (11,503,333) (11,503,333) -
Solid Waste Fund (30,136,536) (30,136,536) (30,136,536) -
Sewer Fund (5,094,515) (5,094,515) (5,094,515) -
Golf Course Fund (1,095,681) (1,095,681) (1,095,681) -
Capital Project Fund - (120,373) (120,373) -
Self Insurance Fund (2,000,000) (2,000,000) (2,000,000) -
Disaster/Emergency Fund (4,503,500) (5,003,500) (4,768,672) 234,828
Public Access, Open Space, and Natural
Resources Preservation Fund (9,075,000) (10,115,000) (9,658,443) 456,557
Public Access, Open Space, and Natural
Resources Preservation Maintenance Fund (1,134,375) (1,094,375) (848,909) 245,466
Budget Stabilization Fund (250,000) (250,000) (250,000) -
Comm Benefit Fund (250,000) (250,000) - 250,000
Debt Service Fund (47,960,933) (47,960,933) (47,960,933) -
Total transfers out (112,995,573) (114,624,246) (113,437,395) 1,186,851
Total other financing uses (112,995,573) (114,624,246) (113,437,395) 1,186,851
Excess (deficiency) of revenues
over (under) expenditures and other uses (36,478,864) (36,478,865) 80,346,743 116,825,608
Fund balance at beginning of fiscal year 190,735,464 190,735,464 190,735,464 -
Fund balance at end of fiscal year 154,256,600$ 154,256,599$ 271,082,207$ 116,825,608$
See accompanying notes to required supplementary information.
- 126 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Intergovernmental -
Federal - HUD - Voucher program 28,322,838$ 33,872,838$ 32,958,898$ (913,940)$
Other federal grants - 25,000,000 23,000,000 (2,000,000)
State - Housing grant - 1,400,000 1,400,000 -
Investment earnings 26,200 648,200 727,454 79,254
Other 911,500 1,187,040 1,760,688 573,648
Total revenues 29,260,538 62,108,078 59,847,040 (2,261,038)
Expenditures:
Health, education and welfare 40,679,603 83,831,248 60,946,233 22,885,015
Pension and retirement contributions 1,326,743 1,326,743 1,201,200 125,543
Employees' health insurance 544,950 544,950 409,093 135,857
Total expenditures 42,551,296 85,702,941 62,556,526 23,146,415
Deficiency of revenues under expenditures (13,290,758) (23,594,863) (2,709,486) 20,885,377
Other financing sources - transfers in -
Transfers in - General Fund 11,495,033 11,503,333 11,503,333 -
Excess (Deficiency) of revenues and other sources
over (under) expenditures (1,795,725) (12,091,530) 8,793,847 20,885,377
Fund balance at beginning of fiscal year 12,611,238 12,611,238 12,611,238 -
Fund balance at end of fiscal year 10,815,513$ 519,708$ 21,405,085$ 20,885,377$
See accompanying notes to required supplementary information.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Hawaii County Housing Agency
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
Required Supplementary Information (Unaudited)
- 127 -
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 128 -
Note - Annual Budget and Budgetary Controls
The County follows these procedures in establishing its operating and capital budgets:
• On or before March 1, the Mayor submits to the County Council proposed operating and
capital projects budgets for the fiscal year commencing the following July 1. The operating
budget includes proposed expenditures for the general fund and special revenue funds, and
the means of financing them. A project-length budget is submitted to the County Council
for the capital projects fund.
• The Mayor submits to the County Council amendments to the proposed operating and
capital budgets within ten working days after the close of the state legislature, but not later
than May 5.
• The County Council conducts public hearings on the proposed operating and capital
budgets after March 1 but prior to the first reading on the budget bills, which must be after
May 5.
• On or before June 30, the County Council adopts the budgets. The legal level of budgetary
control is the department level because the Mayor can transfer funds from any
unencumbered appropriation to another within a department or agency without County
Council approval. During the year, the budget may be amended by action of the County
Council, except for appropriations required by law and appropriations for debt service,
which may not be decreased or deleted. Supplemental appropriations were made during
the 2023-24 fiscal year to recognize revenue from sources not anticipated at the time of the
original budget and to establish the authorization for such funds to be expended. Such
supplemental appropriations totaled $7.8 million in the general fund and $43.7 million in
the special revenue funds. Legally adopted budgets include the General Fund, Highway
Fund, Sewer Fund, Solid Waste Fund, Cemetery Fund, Vehicle Disposal Fund, Bikeway
Fund, Workforce Investment Act Fund, Golf Course Fund, Geothermal Relocation and
Community Benefits Fund, Beautification Fund, Hawai‘i County Housing Agency Fund,
General Excise Tax Fund, Short-Term Vacation Rental Enforcement Fund, and
Geothermal Asset Fund.
• Appropriations for the operating budget lapse at the end of the fiscal year to the extent that
they have not been expended or encumbered. Appropriations for capital expenditures that
are not encumbered lapse at the end of two fiscal years following the fiscal year that the
appropriation was made.
• Formal budgetary integration is employed as a management control device during the year
for the General Fund, special revenue funds, and Capital Projects Fund. Formal budgetary
integration is not employed for debt service funds because effective budgetary control is
alternatively achieved through general obligation bond indenture provisions.
COUNTY OF HAWAIʻI
Required Supplementary Information (Unaudited)
June 30, 2024
- 129 -
• The accompanying statements of revenues, expenditures and changes in fund balances –
budget and actual (budgetary basis) for the General Fund and Hawaii County Housing
Agency Fund present comparisons of the legally adopted budget with actual data on a
budgetary basis. Accounting principles applied for purposes of developing data on a
budgetary basis differ significantly from those used to present financial statements in
conformity with GAAP. On the budgetary basis, intergovernmental revenues are
recognized when awarded by the granting agency, encumbrances and unexpended
allotments are treated as expenditures, accounts payable are not accrued, and all leases are
treated as operating leases. In preparing the financial statements on a GAAP basis,
accounts payable are accrued and treated as a reduction of encumbrances for balance sheet
presentation.
Budget to GAAP Reconciliation
The following is a summary of the adjustments necessary to convert fund balances of the County’s
General Fund and Housing Agency Fund from a GAAP basis to a budgetary basis at June 30, 2024:
General Fund Housing Agency
Ending fund balance – GAAP basis $ 215,868,896 $ 21,880,205
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 12,951,200 1,106,782
Ending encumbrances and unexpended allotments (21,646,139) (1,603,998)
Other adjustments 63,908,250 22,096
Ending fund balance – Non-GAAP budgetary basis $ 271,082,207 $ 21,405,085
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND - Used to account for the costs of maintaining the County's highways and streets. Financing is provided
primarily by fuel, motor vehicle weight and public utility franchise taxes.
SEWER FUND - Used to account for costs of operating the County’s various sewer systems. Financing is provided by charges
to users for sewer services.
SOLID WASTE FUND – Used to accumulate moneys for the operation, maintenance, and administration of the County’s solid
waste management, collection and disposal systems. Financing is provided by tipping fees at the landfills and by disposal permit
fees.
CEMETERY FUND - Used to accumulate moneys to guarantee the future maintenance of County cemetery sites. Financing is
provided from the sale of burial lots in County cemeteries.
PARKING METER FUND - Used to account for the costs of maintaining County on-street and off-street parking areas. Financing
is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND - Used to accumulate moneys for the towing, removal, disposal and recycling of abandoned or
discarded automobiles and automobile parts. Financing is provided by annual fees collected with motor vehicle registrations.
BIKEWAY FUND - Used to accumulate moneys for the construction of bikeways within the County. Financing is provided by
bicycle license fees.
WORKFORCE INNOVATION AND OPPORTUNITY ACT FUND - Used to account for employment and training services
provided to economically disadvantaged adults, dislocated workers and youth. Financing is provided by federal grants.
GOLF COURSE FUND - Used to account for the cost of operating the Hilo Municipal Golf Course. Funding is provided from
green fees and payments from restaurant and pro shop concessionaires.
GEOTHERMAL RELOCATION AND COMMUNITY BENEFITS FUND - Used to account for the County’s share of geothermal
royalties received from the operator of a geothermal power plant located in the County. The funds are earmarked for a geothermal
relocation program and to benefit the lower Puna area.
BEAUTIFICATION FUND - Used to accumulate moneys for the beautification of highways and disposal of abandoned vehicles
within the County. Financing is provided by assessments on vehicle registrations.
GENERAL EXCISE TAX FUND - Used to account for the general excise tax and use surcharge as authorized by §46-16.8, 237-
8.6, 238-2.6, and 248-2.6(d) Hawaii Revised Statutes and related authorized uses of such funds, including operating or capital
costs of public transportation.
PARK DEDICATION FUND - Used to account for moneys deposited with the County by subdividers to provide land for parks
and playgrounds in subdivisions.
SHORT-TERM VACATION RENTAL ENFORCEMENT FUND – Used to account for cost of enforcing County’s short-term
vacation rental enforcement laws. Financing is provided by all fees and fines collected in connection with the law.
GEOTHERMAL ASSET FUND – Used to account for funds from Puna Geothermal Venture, a Hawai‘i Partnership, to compensate
those impacted by geothermal energy development activities.
DEBT SERVICE FUNDS
INTEREST FUND - Used to accumulate moneys for payment of interest on general obligation bonds. Moneys required to
service interest maturities are transferred annually from the General Fund.
BOND REDEMPTION FUND - Used to accumulate moneys for the payment of general obligation bonds. Moneys required to
retire the bonds are transferred from the General Fund one year in advance of maturity.
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Solid Parking Vehicle
Highway Sewer Waste Cemetery Meter Disposal
Fund Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents 43,768,892$ 21,415,836$ 13,410,902$ 79,947$ 359,550$ 9,798,438$
Investments - - - - - -
Imprest fund - 400 250 - - -
Receivables:
Due from other governments 2,343,402 281,145 879,197 - - -
Due from other governmental funds 660,631 179,692 171,868 - - -
Due from nongovernmental funds - 5,200 - - - -
Trade, net of allowance for doubtful accounts - 2,674,739 2,389,066 - - -
Other - - 986,055 - - -
3,004,033 3,140,776 4,426,186 - - -
Total assets 46,772,925$ 24,557,012$ 17,837,338$ 79,947$ 359,550$ 9,798,438$
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable 1,086,565$ 662,909$ 3,948,834$ -$ -$ 165,648$
Accrued payroll 910,391 284,798 571,216 - - 13,281
Due to other governmental funds 1,050,896 905,982 1,042,003 - - 77,898
Advance Collections-Intergovernmental - - 11,998 - - -
Other 34,342 128,366 742 - - -
Total liabilities 3,082,194 1,982,055 5,574,793 - - 256,827
Deferred Inflows of Resources:
Unavailable revenue (note 6) - 2,674,739 2,389,066
Deferred inflows related to leases - - 68,545 - - -
Total deferred inflows of resources - 2,674,739 2,457,611 - - -
Fund balances:
Restricted for:
Debt service - - - - - -
Highways, streets and abandoned vehicles 43,690,731 - - - - -
Lower Puna area - - - - - -
Committed to:
Sanitation - 19,900,218 9,804,934 - - -
Highways, streets and abandoned vehicles - - - - 359,550 9,541,611
Housing, rental assistance and subsidy - - - - - -
Cemetery - - - 79,947 - -
Golf Course - - - - - -
Lower Puna area - - - - - -
Parks and recreational projects - - - - - -
Total fund balances 43,690,731 19,900,218 9,804,934 79,947 359,550 9,541,611
Total liabilities, deferred inflows
and fund balances 46,772,925$ 24,557,012$ 17,837,338$ 79,947$ 359,550$ 9,798,438$
See accompanying report of independent auditors.
Special Revenue Funds
COUNTY OF HAWAIʻI
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2024
- 130 -
Workforce Golf Geothermal Reloc.Beauti- Park
Bikeway Innovation &Course & Community fication General Excise Dedication
Fund Opport. Act Fund Fund Benefits Fund Fund Tax Fund Fund
414,581$ -$ 730,464$ 5,078,571$ 261,052$ 47,239,642$ 64,980$
- - - - - - -
- - 2,000 - - - -
- 558,466 - - - 25,045,618 -
- 64 - - - 63,053 -
- - - - - - -
- - - - - - -
- 38,994 1,208,621 561,116 - - -
- 597,524 1,208,621 561,116 - 25,108,671 -
414,581$ 597,524$ 1,941,085$ 5,639,687$ 261,052$ 72,348,313$ 64,980$
2,414$ -$ 8,662$ 2,756$ 1,638$ 2,471,707$ -$
- - 57,886 - - 86,865 -
- 597,524 - - 108,259 10,885 -
- - - - - - -
- - - - - 2,106 -
2,414 597,524 66,548 2,756 109,897 2,571,563 -
- - - - - - -
- - 1,201,097 - - - -
- - 1,201,097 - - - -
- - - - - - -
412,167 - - - 151,155 69,776,750 -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - 673,440 - - - -
- - - 5,636,931 - - -
- - - - - - 64,980
412,167 - 673,440 5,636,931 151,155 69,776,750 64,980
414,581$ 597,524$ 1,941,085$ 5,639,687$ 261,052$ 72,348,313$ 64,980$
Special Revenue Funds
COUNTY OF HAWAIʻI
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2024
- 131 -
(Concluded)
Total
Short-term Bond Nonmajor
Vacation Rental Geothermal Interest Redemption Governmental
Enforcement Fund Asset Fund Fund Fund Funds
Assets
Cash and cash equivalents 1,241,945$ 2,576,377$ 6,430,953$ 5,567,490$ 158,439,620$
Investments - - - 43,500,000 43,500,000
Imprest fund - - - - 2,650
Receivables:
Due from other governments - - - - 29,107,828
Due from other governmental funds - - - - 1,075,308
Due from nongovernmental funds - - - 159,080 164,280
Trade, net of allowance for doubtful accounts - - - - 5,063,805
Other - - 15,377 - 2,810,163
- - 15,377 159,080 38,221,384
Total assets 1,241,945$ 2,576,377$ 6,446,330$ 49,226,570$ 240,163,654$
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable -$ -$ -$ -$ 8,351,133$
Accrued payroll 13,549 - - - 1,937,986
Due to other governmental funds - - - - 3,793,447
Advance Collections-Intergovernmental - - - - 11,998
Other - - 63,198 185,000 413,754
Total liabilities 13,549 - 63,198 185,000 14,508,318
Deferred Inflows of Resources:
Unavailable revenue (note 6) - - - - 5,063,805
Deferred inflows related to leases - - - - 1,269,642
Total deferred inflows of resources - - - - 6,333,447
Fund balances:
Restricted for:
Debt service - - 6,383,132 49,041,570 55,424,702
Highways, streets and abandoned vehicles - - - - 114,030,803
Lower Puna area - 2,576,377 - - 2,576,377
Committed to:
Sanitation - - - - 29,705,152
Highways, streets and abandoned vehicles - - - - 9,901,161
Housing, rental assistance and subsidy 1,228,396 - - - 1,228,396
Cemetery - - - - 79,947
Golf Course - - - - 673,440
Lower Puna area - - - - 5,636,931
Parks and recreational projects - - - - 64,980
Total fund balances 1,228,396 2,576,377 6,383,132 49,041,570 219,321,889
Total liabilities, deferred inflows
and fund balances 1,241,945$ 2,576,377$ 6,446,330$ 49,226,570$ 240,163,654$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Nonmajor Governmental Funds
Debt Service Fund
Combining Balance Sheet
June 30, 2024
- 132 -
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Solid Parking Vehicle
Highway Sewer Waste Cemetery Meter Disposal
Fund Fund Fund Fund Fund Fund
Revenues
Fuel taxes 21,707,504$ -$ -$-$ -$ -$
Public utility franchise taxes 11,589,997 - - - - -
Licenses and permits 13,435,238 - - - - 2,567,976
General excise tax surcharge - - - - - -
Intergovernmental 2,788,102 - 681,723 - - -
Charges for services 444,595 16,311,673 15,478,249 - 10,188 15,683
Investment earnings - - - - - -
Other 464,620 962 74,525 10,750 -13,985
Total revenues 50,430,056 16,312,635 16,234,497 10,750 10,188 2,597,644
Expenditures
Current:
General Government 2,800,762 - - - - -
Public safety 12,115,525 - - - - -
Highways and streets 20,332,923 - - - - -
Health, education and welfare - - - - - -
Culture and recreation - - - 60,269 - -
Sanitation - 16,133,761 40,276,111 - - 2,230,308
Pension and retirement contributions 4,807,845 1,364,142 2,506,875 - - 48,122
Employees' health insurance 1,867,689 525,569 1,041,833 - - 29,451
Other 410,313 172,383 652,948 - - -
Debt service:
Principal 894,248 414,522 746,841 - - -
Interest 78,729 92,363 74,132 - --
Total expenditures 43,308,034 18,702,740 45,298,740 60,269 -2,307,881
Excess (deficiency) of revenues
over (under) expenditures 7,122,022 (2,390,105) (29,064,243) (49,519) 10,188 289,763
Other Financing Sources (Uses)
Transfers in - 5,094,515 30,136,536 - - -
Increases in leases and
other financing agreements 9,539 2,785,852 1,586,456 - - -
Transfers out (4,644,289) - -- -(481,904)
Total other financing sources (uses) (4,634,750) 7,880,367 31,722,992 - -(481,904)
Net change in fund balances 2,487,272 5,490,262 2,658,749 (49,519) 10,188 (192,141)
Fund balances at beginning of fiscal year 41,203,459 14,409,956 7,146,185 129,466 349,362 9,733,752
Fund balances at end of fiscal year 43,690,731$ 19,900,218$ 9,804,934$ 79,947$ 359,550$ 9,541,611$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
Special Revenue Funds
COUNTY OF HAWAIʻI
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
- 133 -
Workforce Golf Geothermal Reloc.Beauti- Park
Bikeway Innovation &Course & Community fication General Excise Dedication
Fund Opport. Act Fund Fund Benefits Fund Fund Tax Fund Fund
-$ -$ -$ -$ -$ -$ -$
- - - - - - -
48,754 - - - 213,946 - -
- - - - - 72,740,427 -
- 1,012,285 - - - - -
- - 975,009 - - - -
- - - - - - 2,707
5,099 - - 900,457 26 - -
53,853 1,012,285 975,009 900,457 213,972 72,740,427 2,707
- - - 2,756 - - -
- - - 231,890 - - -
150,294 - - - 214,591 31,973,713 -
- 1,012,285 - - - - -
- - 1,293,879 495,237 35,134 - -
- - - - - - -
- - 303,159 - - 371,572 -
- - 144,381 - - 92,304 -
- - - - - 13,810 -
- - 4,863 - - - -
- - 27 - - - -
150,294 1,012,285 1,746,309 729,883 249,725 32,451,399 -
(96,441) - (771,300) 170,574 (35,753) 40,289,028 2,707
- - 1,095,681 - - - -
- - - - - - -
- - - - - (46,897,627) -
- - 1,095,681 - - (46,897,627) -
(96,441) - 324,381 170,574 (35,753) (6,608,599) 2,707
508,608 - 349,059 5,466,357 186,908 76,385,349 62,273
412,167$ -$ 673,440$ 5,636,931$ 151,155$ 69,776,750$ 64,980$
Special Revenue Funds
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
- 134 -
(Concluded)
Total
Short-term Bond Nonmajor
Vacation Rental Geothermal Interest Redemption Governmental
Enforcement Fund Asset Fund Fund Fund Funds
Revenues
Fuel taxes -$ -$ -$ -$ 21,707,504$
Public utility franchise taxes - - - - 11,589,997
Licenses and permits 325,020 - - - 16,590,934
General excise tax surcharge - - - - 72,740,427
Intergovernmental - - - - 4,482,110
Charges for services - - - - 33,235,397
Investment earnings - 106,900 181,721 - 291,328
Other 2,500 50,000 - - 1,522,924
Total revenues 327,520 156,900 181,721 - 162,160,621
Expenditures
Current:
General Government 323,334 - - - 3,126,852
Public safety - - - - 12,347,415
Highways and streets - - - - 52,671,521
Health, education and welfare - - - - 1,012,285
Culture and recreation - - - - 1,884,519
Sanitation - - - - 58,640,180
Pension and retirement contributions 85,974 - - - 9,487,689
Employees' health insurance 54,099 - - - 3,755,326
Other - - - - 1,249,454
Debt service:
Principal - - - 62,023,932 64,084,406
Interest - - 19,725,479 - 19,970,730
Total expenditures 463,407 - 19,725,479 62,023,932 228,230,377
Excess (deficiency) of revenues
over (under) expenditures (135,887) 156,900 (19,543,758) (62,023,932) (66,069,756)
Other Financing Sources (Uses)
Transfers in - - 18,018,549 64,566,982 118,912,263
Increases in leases and
other financing agreements - - - - 4,381,847
Transfers out - - - - (52,023,820)
Total other financing sources (uses) - - 18,018,549 64,566,982 71,270,290
Net change in fund balances (135,887) 156,900 (1,525,209) 2,543,050 5,200,534
Fund balances at beginning of fiscal year 1,364,283 2,419,477 7,908,341 46,498,520 214,121,355
Fund balances at end of fiscal year 1,228,396$ 2,576,377$ 6,383,132$ 49,041,570$ 219,321,889$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
Debt Service Fund
COUNTY OF HAWAIʻI
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
- 135 -
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Performance
State Improvement Improvement Improvement Improvement and
Weight District District District District Refundable
Tax No. 18 No. 19 No. 20 Revolving Deposits
Fund Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents 2,067,463$ 335,351$ 603,483$ 759,087$ 442,951$ 323,929$
Due from other custodial funds - - - - - -
Other receivables - 23,348 4,234 7,541 - -
Total assets 2,067,463$ 358,699$ 607,717$ 766,628$ 442,951$ 323,929$
Liabilities
Accrued liabilities 2,067,463$ 890$ 1,092$ 8,194$ -$ -$
Due to other custodial funds - - - - - 12,225
Advances payable - 22,627 1,236 21,755 - -
Total liabilities 2,067,463$ 23,517$ 2,328$ 29,949$ -$ 12,225$
Net Position
Restricted for others -$ 335,182$ 605,389$ 736,679$ 442,951$ 311,704$
Total net position -$ 335,182$ 605,389$ 736,679$ 442,951$ 311,704$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Custodial Funds
Combining Statement of Custodial Funds Fiduciary Net Position
June 30, 2024
- 136 -
Non-Profit Organ and Business
Flexible Lapsed License Tissue Improvement
Spending Warrants Plates Education District
Account Fund Fund Fund 1 - Kailua Total
428,157$ 465,135$ 44,225$ 5,362$ 1,767$ 5,476,910$
- 12,225 - - - 12,225
- 84,150 1,410.00 - 16,210 136,893
428,157$ 561,510$ 45,635$ 5,362$ 17,977$ 5,626,028$
-$ -$45,635$ 5,362$ 17,977$ 2,146,613$
- - - - - 12,225
- - - - - 45,618
-$ -$45,635$ 5,362$ 17,977$ 2,204,456$
428,157$ 561,510$ -$ -$-$3,421,572$
428,157$ 561,510$ -$ -$-$3,421,572$
COUNTY OF HAWAIʻI
Custodial Funds
Combining Statement of Custodial Funds Fiduciary Net Position
June 30, 2024
- 137 -
Improvement
Improvement Improvement Improvement District
State Weight District District District Revolving
Tax Fund No. 18 Fund No. 19 Fund No. 20 Fund Fund
Additions
Tax collections for state 30,133,621$ -$ -$ -$ -$
Special assessment collections - 61,344 19,825 146,045 -
Developer deposit - - - - -
Employee collections - - - -
Lapsed checks - - - - -
Collections from vehicle registrations and licenses - - - - -
Investment earnings - 14,100 25,587 30,537 18,455
Total additions 30,133,621 75,444 45,412 176,582 18,455
Deductions
Payment of taxes to state 29,006,902 - - - -
Payments to state, not for profits and
improvement district - - - - -
Contributions to debt repayment - 124,322 55,133 86,415 -
Administrative charges 1,126,719 890 1,092 8,194 -
Community facility district expenses - - - - -
Reissuance of checks - - - - -
Reimbursements to employees - - - - -
Other - 56 56 179 -
Total deductions 30,133,621 125,268 56,281 94,788 -
Change in net position - (49,824) (10,869) 81,794 18,455
Net position at beginning of fiscal year - 385,006 616,258 654,885 424,496
Net position at end of fiscal year -$ 335,182$ 605,389$ 736,679$ 442,951$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Custodial Funds
Combining Statement of Changes in Custodial Funds Fiduciary Net Position
For the Fiscal Year Ended June 30, 2024
- 138 -
Performance
and Non-Profit Organ and Business
Refundable Flexible Lapsed License Tissue Improvement Total
Deposits Spending Warrants Plates Education District Custodial
Fund Account Fund Fund Fund 1 - Kailua Funds
-$ -$ -$ -$ -$ -$ 30,133,621$
972,597 - - - - 1,269,660 2,469,471
75,000 - - - - - 75,000
- 561,008 - - - - 561,008
- - 96,637 - - - 96,637
134,000 164,535 21,921 - 320,456
- - - - - - 88,679
1,181,597 561,008 96,637 164,535 21,921 1,269,660 33,744,872
- - - - - - 29,006,902
- - - 130,810 17,706 1,266,774 1,415,290
- - - - - - 265,870
- - - 33,725 4,215 2,886 1,177,721
972,597 - - - - - 972,597
- - 27,542 - - - 27,542
- 566,446 - - - - 566,446
40,866 - - - - - 41,157
1,013,463 566,446 27,542 164,535 21,921 1,269,660 33,473,525
168,134 (5,438) 69,095 - - - 271,347
143,570 433,595 492,415 - - - 3,150,225
311,704$ 428,157$ 561,510$ -$ -$ -$ 3,421,572$
COUNTY OF HAWAIʻI
Custodial Funds
Combining Statement of Changes in Custodial Funds Fiduciary Net Position
For the Fiscal Year Ended June 30, 2024
- 139 -
Shippers' Total
Wharf Private
Trust Purpose
Assets Fund Trusts
Cash and cash equivalents 577,982$ 577,982$
Investments 2,073,074 2,073,074
Total assets 2,651,056$ 2,651,056$
Net Position
Restricted for other parties 2,651,056$ 2,651,056$
Total net position 2,651,056$ 2,651,056$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Private Purpose Trusts
Combining Statement of Private Purpose Trust Fiduciary Net Position
June 30, 2024
- 140 -
Shippers' Total
Wharf Private
Trust Purpose
Fund Trusts
Additions
Investment earnings:
Dividends 80,539$ 80,539$
Interest 2,103 2,103
Net increase in fair value of investments 142,049 142,049
Total additions 224,691 224,691
Deductions
Grant payments 83,391 83,391
Investment Fees 15,789 15,789
Total deductions 99,180 99,180
Change in net position 125,511 125,511
Net position, beginning of fiscal year 2,525,545 2,525,545
Net position, end of fiscal year 2,651,056$ 2,651,056$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Fiduciary Net Position
For the Fiscal Year Ended June 30, 2024
- 141 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Taxes:
Fuel taxes 21,600,000$ 21,600,000$ 21,707,504$ 107,504$
Public utility franchise taxes 12,728,000 12,728,000 11,589,997 (1,138,003)
Total taxes 34,328,000 34,328,000 33,297,501 (1,030,499)
Licenses and permits - motor vehicle weight taxes 12,000,000 12,000,000 13,435,238 1,435,238
Intergovernmental 1,751,258 2,000,578 2,916,853 916,275
Charges for services 655,000 655,000 959,498 304,498
Other 138,000 138,000 464,620 326,620
Total revenues 48,872,258 49,121,578 51,073,710 1,952,132
Expenditures:
General government - engineering 3,520,131 6,379,508 4,270,476 2,109,032
Public safety - police traffic enforcement 2,395,204 2,395,204 1,422,694 972,510
Public safety - protective inspection 2,382,700 1,294,643 1,202,668 91,975
Public safety - traffic engineering 11,583,895 11,583,895 9,881,056 1,702,839
Highways and streets 22,460,267 22,460,267 21,004,189 1,456,078
Pension and retirement contributions 5,690,000 5,690,000 4,794,455 895,545
Employees' health insurance 2,225,000 2,225,000 1,857,950 367,050
Other 1,600,000 1,600,000 457,900 1,142,100
51,857,197 53,628,517 44,891,388 8,737,129
(2,984,939) (4,506,939) 6,182,322 10,689,261
(5,000,000) (5,000,000) (4,718,922) 281,078
(7,984,939) (9,506,939) 1,463,400 10,970,339
41,203,459 41,203,459 41,203,459 -
33,218,520$ 31,696,520$ 42,666,859$ 10,970,339$
Total expenditures
Excess (Deficiency) of revenues over (under)
expenditures
Other financing uses - transfers out -
Transfers out - Capital Projects Fund
Excess (Deficiency) of revenues
over (under) expenditures and other uses
Fund balance at beginning of fiscal year Fund
balance at end of fiscsal year
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Highway Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 142 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Charges for services - sewer fees 15,690,147$ 15,690,147$ 16,311,673$ 621,526$
Other - - 962 962
Total revenues 15,690,147 15,690,147 16,312,635 622,488
Expenditures:
Sanitation 19,146,335 19,146,335 14,089,288 5,057,047
Pension and retirement contributions 2,090,583 2,090,583 1,361,015 729,568
Employees' health insurance 874,223 804,223 523,234 280,989
Other 1,105,000 1,175,000 332,611 842,389
Total expenditures 23,216,141 23,216,141 16,306,148 6,909,993
Deficiency of revenues under expenditures (7,525,994) (7,525,994) 6,487 7,532,481
Other financing sources:
Transfers in - General Fund 5,094,515 5,094,515 5,094,515 -
Excess (Deficiency) of revenues and other
sources over (under) expenditures (2,431,479) (2,431,479) 5,101,002 7,532,481
Fund balance at beginning of fiscal year 14,409,956 14,409,956 14,409,956 -
Fund balance at end of fiscal year 11,978,477$ 11,978,477$ 19,510,958$ 7,532,481$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Sewer Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 143 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Intergovernmental 915,414$ 2,647,544$ 2,457,512$ (190,032)$
Charges for services - tipping fees 14,930,000 14,930,000 15,478,249 548,249
Other - - 74,525 74,525
Total revenues 15,845,414 17,577,544 18,010,286 432,742
Expenditures:
Sanitation 43,514,946 45,247,076 42,004,024 3,243,052
Pension and retirement contributions 3,032,248 2,777,248 2,495,859 281,389
Employees' health insurance 1,166,225 1,166,225 1,031,637 134,588
Other 546,000 801,000 645,367 155,633
Total expenditures 48,259,419 49,991,549 46,176,887 3,814,662
Deficiency of revenues under expenditures (32,414,005) (32,414,005) (28,166,601) 4,247,404
Other financing sources:
Transfers in - General Fund 30,136,536 30,136,536 30,136,536 -
Excess (Deficiency) of revenues and other
sources over (under) expenditures (2,277,469) (2,277,469) 1,969,935 4,247,404
Fund balance at beginning of fiscal year 7,146,185 7,146,185 7,146,185 -
Fund balance at end of fiscal year 4,868,716$ 4,868,716$ 9,116,120$ 4,247,404$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Solid Waste Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 144 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues - other - sale of cemetery plots 10,000$ 10,000$ 10,750$ 750$
Expenditures - health, education and welfare 10,000 10,000 9,769 231
Excess of revenues over expenditures - - 981 981
Fund balance at beginning of fiscal year 129,466 129,466 129,466 -
Fund balance at end of fiscal year 129,466$ 129,466$ 130,447$ 981$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Cemetery Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 145 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues - Charges for services - highways and streets -$ -$ 10,188$ 10,188$
Excess of revenues over expenditures - - 10,188 10,188
Fund balance at beginning of fiscal year 349,362 349,362 349,362 -
Fund balance at end of fiscal year 349,362$ 349,362$ 359,550$ 10,188$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Parking Meter Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 146 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Licenses and permits - vehicle disposal fee 2,515,000$ 2,515,000$ 2,567,976$ 52,976$
Charges for services - towing charges 18,000 18,000 15,683 (2,317)
Miscellaneous 5,000 5,000 13,985 8,985
Total revenues 2,538,000 2,538,000 2,597,644 59,644
Expenditures:
Sanitation 4,159,299 4,159,299 2,085,999 2,073,300
Pension and retirement contributions 64,500 64,500 47,372 17,128
Employees' health insurance 42,204 42,204 28,187 14,017
Other 2,000 2,000 - 2,000
Total expenditures 4,268,003 4,268,003 2,161,558 2,106,445
Deficiency of revenues under expenditures (1,730,003) (1,730,003) 436,086 2,166,089
Other financing uses - transfers out -
Transfers out - Capital Projects Fund (200,000) (200,000) - 200,000
Transfers out - Serial Bond Redemption Fund (440,000) (440,000) (410,403) 29,597
Transfers out - Interest Fund (80,000) (80,000) (71,501) 8,499
Deficiency of revenues
under expenditures and other uses (2,450,003) (2,450,003) (45,818) 2,404,185
Fund balance at beginning of fiscal year 9,733,752 9,733,752 9,733,752 -
Fund balance at end of fiscal year 7,283,749$ 7,283,749$ 9,687,934$ 2,404,185$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Vehicle Disposal Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 147 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues -
Licenses and permits - bicycle tax $ 50,000 $ 50,000 $ 48,754 (1,246)$
Miscellaneous - - 5,099 5,099
Total revenues 50,000 50,000 53,853 3,853
Expenditures - highways and streets 199,000 199,000 149,589 49,411
Deficiency of revenues under expenditures (149,000) (149,000) (95,736) (45,558)
Fund balance at beginning of fiscal year 508,608 508,608 508,608 -
Fund balance at end of fiscal year $359,608 $359,608 $412,872 ($45,558)
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Bikeway Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 148 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues - intergovernmental -$ -$ (1,075,772)$ (1,075,772)$
Expenditures - health, education and welfare - - (1,075,772) 1,075,772
Excess of revenues over expenditures - - - -
Fund balance at beginning of fiscal year - - - -
Fund balance at end of fiscal year -$ -$ -$ -$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Workforce Innovation & Opportunity Act Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 149 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Charges for services 932,250$ 932,250$ 975,009$ 42,759$
Expenditures:
Culture and recreation 1,578,486 1,578,486 1,385,048 193,438
Pension and retirement contributions 324,423 322,715 303,096 19,619
Employees' health insurance 142,000 143,708 143,708 -
Other 6,000 6,000 - 6,000
Total expenditures 2,050,909 2,050,909 1,831,852 219,057
Deficiency of revenues under expenditures (1,118,659) (1,118,659) (856,843) 261,816
Other financing sources:
Transfers in - General Fund 1,095,681 1,095,681 1,095,681 -
Excess (Deficiency) of revenues and other sources
over (under) expenditures (22,978) (22,978) 238,838 261,816
Fund balance at beginning of fiscal year 349,059 349,059 349,059 -
Fund balance at end of fiscal year 326,081$ 326,081$ 587,897$ 261,816$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Golf Course Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 150 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues
Miscellaneous:
Geothermal royalties 1,000,000$ 1,000,000$ 900,457$ (99,543)$
Expenditures:
General government - planning and zoning 1,000,000 563,000 65,000 498,000
Culture & Recreation - 437,000 434,991 2,009
Total expenditures 1,000,000 1,000,000 499,991 500,009
Excess of revenues over expenditures - - 400,466 400,466
Fund balance at beginning of fiscal year 5,466,357 5,466,357 5,466,357 -
Fund balance at end of fiscal year 5,466,357$ 5,466,357$ 5,866,823$ 400,466$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Geothermal Relocation and Community Benefits Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 151 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues
Licenses and permits - highway beautification 200,000$ 200,000$ 213,946$ 13,946$
Miscellaneous - - 26 26
Total revenues 200,000 200,000 213,972 13,972
Expenditures:
Highways and streets 178,450 178,450 166,119 12,331
Culture and recreation 90,000 90,000 35,134 54,866
Total expenditures 268,450 268,450 201,253 67,197
Excess (Deficiency) of revenues
over (under) expenditures (68,450) (68,450) 12,719 (53,225)
Fund balance at beginning of fiscal year 186,908 186,908 186,908 -
Fund balance at end of fiscal year 118,458$ 118,458$ 199,627$ (53,225)$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Beautification Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 152 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
General excise tax surcharge 60,000,000$ 60,000,000$ 72,740,427$ 12,740,427$
Expenditures:
Highways and streets - mass transit 37,732,245 37,732,245 29,859,558 7,872,687
Pension and retirement contributions 630,000 630,000 367,212 262,788
Employees' health insurance 175,000 175,000 91,016 83,984
Other 165,128 165,128 9,201 155,927
Total expenditures 38,702,373 38,702,373 30,326,987 8,375,386
Excess of revenues over expenditures 21,297,627 21,297,627 42,413,440 4,365,041
Other financing uses - transfers out -
Transfers out - Capital Projects Fund (38,197,627) (38,197,627) (38,197,627) -
Transfers out - Serial Bond Redemption Fund (6,400,000) (6,400,000) (6,400,000) -
Transfers out - Interest Fund (2,300,000) (2,300,000) (2,300,000) -
Deficiency of revenues under
expenditures and other uses (25,600,000) (25,600,000) (4,484,187) 4,365,041
Fund balance at beginning of fiscal year 76,385,349 76,385,349 76,385,349 -
Fund balance at end of fiscal year 50,785,349$ 50,785,349$ 71,901,162$ 4,365,041$
See accompanying report of independent auditors
COUNTY OF HAWAIʻI
General Excise Tax Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
- 153 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues - investment earnings -$ -$ 2,707$ 2,707$
Excess of revenues over expenditures - - 2,707 2,707
Fund balance at beginning of fiscal year 62,273 62,273 62,273 -
Fund balance at end of fiscal year 62,273$ 62,273$ 64,980$ 2,707$
See accompanying report of independent auditors.
For the Fiscal Year Ended June 30, 2024
COUNTY OF HAWAIʻI
Park Dedication Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
- 154 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Licenses - ST vacation rental fees 337,500$ 337,500$ 325,020$ (12,480)$
Fines and forfeitures 10,000 10,000 2,500 (7,500)
Total revenues 347,500 347,500 327,520 (19,980)
Expenditures:
General government:
ST vacation rental enforcement 854,772 854,772 326,675 528,097
Pension and retirement contributions 205,000 205,000 87,044 117,956
Employees' health insurance 127,000 127,000 54,550 72,450
Total expenditures 1,186,772 1,186,772 468,269 718,503
Deficiency of revenues under expenditures (839,272) (839,272) (140,749) 698,523
Fund balance at beginning of fiscal year 1,364,283 1,364,283 1,364,283 -
Fund balance at end of fiscal year 525,011$ 525,011$ 1,223,534$ 698,523$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Short-Term Vacation Rental Enforcement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
- 155 -
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis)(Negative)
Revenues:
Licenses - geothermal assessment 50,000$ 50,000$ 50,000$ -$
Investment earnings - - 106,900 106,900
Total revenues 50,000 50,000 156,900 106,900
Expenditures:
General government 50,000 50,000 50,000 -
Total expenditures 50,000 50,000 50,000 -
Excess of revenues over expenditures - - 106,900 106,900
Fund balance at beginning of fiscal year 2,419,477 2,419,477 2,419,477 -
Fund balance at end of fiscal year 2,419,477$ 2,419,477$ 2,526,377$ 106,900$
See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Geothermal Asset Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2024
- 156 -
STATISTICAL SECTION
(UNAUDITED)
Contents
Page
Financial Trends – These schedules contain trend information to help the reader understand how
the County’s financial performance and well-being have changed over time. 157
Revenue Capacity – These schedules contain information to help the reader assess the County’s
most significant local revenue source, the property tax. 162
Debt Capacity – These schedules present information to help the reader assess the affordability
of the County’s current levels of outstanding debt and the County’s ability to issue additional
debt in the future. 168
Demographic and Economic Information – These schedules offer demographic and economic
indicators to help the reader understand the environment within which the County’s financial
activities take place. 171
Operating Information – These schedules contain service and infrastructure data to help the
reader understand how the information in the County’s financial report relates to the services
provided and the activities performed by the County. 173
Table 1
2015 2016, as 2017, as 2018 2019 2020, as 2021 2022 2023 2024
restated restated restated
Governmental activities
Net investment in capital assets 748,754,727$ 824,846,090$ 835,787,961$ 840,099,433$ 866,986,564$ 891,782,081$ 917,612,276$ 955,734,185$ 1,027,992,548$ 1,135,168,681$
Restricted 74,813,856 74,694,901 70,439,580 91,458,455 83,230,067 96,650,462 146,204,814 114,790,899 283,205,882 239,236,262
Unrestricted¹(351,386,671) (403,934,491) (745,796,790) (791,538,872) (822,112,134) (835,802,574) (881,626,311) (756,512,631) (742,508,136) (611,283,695)
Total governmental activities net position 472,181,912$ 495,606,500$ 160,430,751$ 140,019,016$ 128,104,497$ 152,629,969$ 182,190,779$ 314,012,453$ 568,690,294$ 763,121,248$
Business-type activities
Net investment in capital assets 428,815$ 481,039$ 524,292$ 595,538$ 667,777$ 1,334,932$ 3,406,506$ 3,513,854$ 3,537,456$ 3,434,892$
Restricted - - - - - - - - - -
Unrestricted 1,040,216 1,036,870 1,022,523 1,118,492 1,217,201 1,277,986 884,574 1,003,398 1,109,631 1,259,755
Total business-type activities net position 1,469,031$ 1,517,909$ 1,546,815$ 1,714,030$ 1,884,978$ 2,612,918$ 4,291,080$ 4,517,252$ 4,647,087$ 4,694,647$
Primary government
Net investment in capital assets 749,183,542$ 825,327,129$ 836,312,253$ 840,694,971$ 867,654,341$ 893,117,013$ 921,018,782$ 959,248,039$ 1,031,530,004$ 1,138,603,573$
Restricted 74,813,856 74,694,901 70,439,580 91,458,455 83,230,067 96,650,462 146,204,814 114,790,899 283,205,882 239,236,262
Unrestricted (350,346,455) (402,897,621) (744,774,267) (790,420,380) (820,894,933) (834,524,588) (880,741,737) (755,509,233) (741,398,505) (610,023,940)
Total primary government net position 473,650,943$ 497,124,409$ 161,977,566$ 141,733,046$ 129,989,475$ 155,242,887$ 186,481,859$ 318,529,705$ 573,337,381$ 767,815,895$
¹ Balances prior to FY 2017 have not been adjusted for the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Net Position by Component
Last Ten Fiscal Years
- 157 -
Table 2
2015 2016, as 2017 2018 2019 2020 2021 2022 2023 2024
restated
Program Revenues
Governmental activities:
Charges for services:
General government 2,246,106$ 2,659,984$ 2,791,430$ 2,334,119$ 2,149,353$ 4,320,738$ 894,631$ 1,505,745$ 2,504,468$ 2,751,041$
Public safety 5,926,316 5,594,344 5,739,064 6,114,204 6,220,940 5,917,482 6,306,227 8,375,603 8,797,235 8,457,724
Highways and streets 16,043,045 16,965,449 16,712,641 17,295,316 17,870,107 16,585,633 17,414,046 17,617,754 17,829,111 18,057,208
Health, education and welfare 548,781 523,824 1,305,662 923,654 1,320,363 2,522,672 1,030,983 930,661 1,278,268 2,699,332
Culture and recreation 2,150,900 1,951,553 1,844,380 1,999,177 1,940,302 1,451,429 1,147,130 1,779,503 2,331,297 2,573,896
Sanitation 17,816,818 19,011,328 20,896,167 21,910,253 25,858,609 25,678,374 25,370,090 29,606,706 32,048,880 35,918,451
Operating grants and contributions 47,406,704 47,234,458 52,897,945 57,600,066 64,285,842 75,553,629 165,236,320 102,386,921 141,690,010 104,918,731
Capital grants and contributions 29,621,907 60,230,846 14,784,692 31,530,719 28,375,566 43,498,993 28,772,337 36,716,672 139,937,282 29,943,511
Total governmental activites program revenues 121,760,577 154,171,786 116,971,981 139,707,508 148,021,082 175,528,950 246,171,764 198,919,565 346,416,551 205,319,894
Business-type activities:
Charges for services:
Health, education and welfare 453,304 457,842 469,082 503,597 510,352 482,150 485,498 500,472 541,139 603,796
Operating grants and contributions 113,642 133,932 132,435 224,921 261,848 269,273 262,821 277,837 331,282 396,005
Total business-type activities program revenues 566,946 591,774 601,517 728,518 772,200 751,423 748,319 778,309 872,421 999,801
Total primary grovernment program revenues 122,327,523$ 154,763,560$ 117,573,498$ 140,436,026$ 148,793,282$ 176,280,373$ 246,920,083$ 199,697,874$ 347,288,972$ 206,319,695$
Expenses
Governmental activities:
General government 69,859,089$ 65,064,440$ 72,836,020$ 75,740,262$ 88,660,088$ 86,747,456$ 88,736,125$ 84,642,838$ 102,326,533$ 126,527,858$
Public safety 175,104,223 187,160,903 229,507,091 245,139,168 248,111,465 274,259,439 353,318,886 242,555,050 231,891,768 260,420,327
Highways and streets 45,989,038 45,255,305 51,368,841 54,728,332 62,066,700 67,161,387 71,625,009 66,452,718 132,580,459 90,918,955
Health, education and welfare 34,304,166 39,722,480 40,299,077 35,597,718 37,919,675 37,042,326 48,213,864 61,230,308 115,580,138 83,470,948
Culture and recreation 32,225,574 27,315,451 35,213,973 35,834,512 35,908,061 33,613,224 25,092,892 32,573,321 36,267,778 33,445,396
Sanitation 41,467,081 48,521,434 56,605,864 55,025,011 62,775,074 68,870,497 61,260,244 61,075,307 64,095,411 71,863,269
Interest on long-term debt 12,362,411 11,162,756 13,385,794 15,493,678 13,277,652 14,178,476 13,811,108 13,011,481 13,181,506 16,249,515
Total governmental activities expenses 411,311,582 424,202,769 499,216,660 517,558,681 548,718,715 581,872,805 662,058,128 561,541,023 695,923,593 682,896,268
Business-type activities:
Health, education and welfare 561,813 544,808 573,854 566,864 609,486 645,452 740,211 728,454 874,238 969,063
Total business-type activities expenses 561,813 544,808 573,854 566,864 609,486 645,452 740,211 728,454 874,238 969,063
Total primary government expenses 411,873,395$ 424,747,577$ 499,790,514$ 518,125,545$ 549,328,201$ 582,518,257$ 662,798,339$ 562,269,477$ 696,797,831$ 683,865,331$
Net Expense
Governmental activities (289,551,005)$ (270,030,983)$ (382,244,679)$ (377,851,173)$ (400,697,633)$ (406,343,855)$ (415,886,364)$ (362,621,458)$ (349,507,042)$ (477,576,374)$
Business-type activities 5,133 46,966 27,663 161,654 162,714 105,971 8,108 49,855 (1,817) 30,738
Total primary government net expense (289,545,872)$ (269,984,017)$ (382,217,016)$ (377,689,519)$ (400,534,919)$ (406,237,884)$ (415,878,256)$ (362,571,603)$ (349,508,859)$ (477,545,636)$
Continued next page.
COUNTY OF HAWAIʻI
Changes in Net Position
Last Ten Fiscal Years
- 158 -
Table 2
2015 2016, as 2017 2018 2019 2020 2021 2022 2023 2024
restated
COUNTY OF HAWAIʻI
Changes in Net Position
Last Ten Fiscal Years
General Revenues and Other Changes in Net Position
Governmental activities:
General revenues:
Property taxes 237,217,225$ 248,353,113$ 268,869,322$ 304,294,883$ 315,969,118$ 333,515,661$ 359,304,950$ 372,144,094$ 445,888,368$ 488,372,488$
Public service company taxes 10,385,654 9,800,948 8,423,340 7,611,856 8,493,409 8,862,416 8,166,880 8,010,990 9,646,274 10,302,928
County transient accomodations tax - - - - - - - 17,511,739 32,191,051 37,374,260
Public utility franchise taxes 10,824,278 9,004,330 7,950,750 8,331,390 9,441,986 9,364,811 8,259,374 9,141,336 12,051,548 11,589,997
Fuel taxes 7,632,973 7,933,810 8,288,676 13,342,416 17,343,326 20,108,062 18,763,374 21,546,859 21,635,977 21,707,504
General excise tax surcharge - - - - 12,518,126 35,537,945 50,287,510 63,736,930 69,548,494 72,740,427
Grants and contributions not restricted to
specific programs 19,506,423 19,557,513 19,810,090 19,678,289 19,748,211 16,530,357 556,488 638,219 812,837 849,934
Investment earnings (loss) 671,363 316,593 661,184 1,841,356 3,420,693 3,220,862 552,408 190,002 11,101,680 27,412,752
Other 8,364,894 12,081,055 7,092,071 2,339,248 1,848,245 2,127,119 1,225,852 1,698,844 1,438,202 1,657,038
Transfers - - - - - (616,776) (1,669,662) (175,881) (129,548) -
Total governmental activities 294,602,810 307,047,362 321,095,433 357,439,438 388,783,114 428,650,457 445,447,174 494,443,132 604,184,883 672,007,328
Business-type activities:
General revenues:
Investment earnings 1,299 1,912 1,243 5,561 8,234 5,193 392 436 2,104 16,822
Transfers - - - - - 616,776 1,669,662 175,881 129,548 -
Total business-type activities 1,299 1,912 1,243 5,561 8,234 621,969 1,670,054 176,317 131,652 16,822
Total primary government 294,604,109$ 307,049,274$ 321,096,676$ 357,444,999$ 388,791,348$ 429,272,426$ 447,117,228$ 494,619,449$ 604,316,535$ 672,024,150$
Changes In Net Position
Governmental activities 5,051,805$ 37,016,379$ (61,149,246)$ (20,411,735)$ (11,914,519)$ 22,306,602$ 29,560,810$ 131,821,674$ 254,677,841$ 194,430,954$
Business-type activities 6,432 48,878 28,906 167,215 170,948 727,940 1,678,162 226,172 129,835 47,560
Total primary government changes in net position 5,058,237$ 37,065,257$ (61,120,340)$ (20,244,520)$ (11,743,571)$ 23,034,542$ 31,238,972$ 132,047,846$ 254,807,676$ 194,478,514$
Unaudited - See accompanying report of independent auditors.
- 159 -
Table 3
2020, as
2015 2016 2017 2018 2019 restated 2021 2022 2023 2024
General Fund:
Nonspendable 3,573,745$ 5,774,378$ 5,561,433$ 6,714,871$ 7,297,830$ 8,187,482$ 9,491,101$ 8,329,382$ 9,108,261$ 9,243,083$
Restricted 4,554,871 9,022,303 15,112,054 16,800,709 26,442,653 15,297,680 28,262,544 21,662,539 39,357,023 41,102,881
Committed 12,925,579 13,537,067 14,013,997 14,533,506 16,211,151 14,518,216 8,159,875 8,390,093 9,750,754 12,422,475
Assigned 30,933,049 25,518,510 13,059,474 19,876,560 23,117,329 45,992,917 38,351,188 46,550,742 49,360,064 59,223,230
Unassigned 164,148 - - 3,114,478 3,119,779 862,773 4,309,187 26,627,041 83,159,362 93,877,227
Total general fund 52,151,392 53,852,258 47,746,958 61,040,124 76,188,742 84,859,068 88,573,895 111,559,797 190,735,464 215,868,896
All other Government Funds:
Restricted 82,232,158 92,746,678 70,397,886 108,275,893 101,546,715 140,894,017 201,554,883 210,571,618 330,682,187 290,263,425
Committed 41,125,668 41,258,644 39,299,995 40,851,304 44,167,734 45,977,492 41,608,984 50,421,273 60,091,586 77,595,827
Assigned - 3,968,524 4,009,520 3,039,319 2,555,817 - 2,135,223 3,895,032 4,066,258 4,081,351
Unassigned (14,958,045) - - (35,855) (22,597) (18,472,707) - - - -
Total of other governmental funds 108,399,781 137,973,846 113,707,401 152,130,661 148,247,669 168,398,802 245,299,090 264,887,923 394,840,031 371,940,603
Total Fund Balances 160,551,173$ 191,826,104$ 161,454,359$ 213,170,785$ 224,436,411$ 253,257,870$ 333,872,985$ 376,447,720$ 585,575,495$ 587,809,499$
Unaudited - See accompanying report of independent auditors.
(Modified accrual basis of accounting)
COUNTY OF HAWAIʻI
Fund Balances, Governmental Funds
Last Ten Fiscal Years
- 160 -
Table 4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenues:
Property tax 236,190$ 249,054$ 266,517$ 301,699$ 313,631$ 327,886$ 355,161$ 372,701$ 441,715$ 483,004$
Public service company tax 10,386 9,801 8,423 7,612 8,494 8,862 8,167 8,011 9,646 10,303
County transient accomodations tax - - - - - - - 12,751 33,911 37,179
Fuel tax 7,633 7,934 8,289 13,342 17,343 20,108 18,763 21,547 21,636 21,708
Public utility franchise tax 10,824 9,004 7,951 8,331 9,442 9,365 8,259 9,141 12,052 11,590
Licenses and permits 22,046 22,432 22,932 24,066 24,653 25,155 24,880 27,337 28,584 28,249
General excise tax surcharge - - - - 12,518 35,538 50,288 63,737 69,549 72,740
Intergovernmental 86,272 85,173 79,220 90,025 101,627 113,632 187,650 118,658 159,710 127,962
Charges for services 20,357 21,672 21,708 23,553 27,516 30,080 24,846 29,641 32,213 35,044
Investment earnings 716 614 632 1,592 4,148 3,481 557 23 12,095 29,445
Other 9,769 16,132 11,791 4,832 4,643 4,174 3,424 5,584 4,861 5,467
Total Revenues 404,193 421,816 427,463 475,052 524,015 578,281 681,995 669,131 825,972 862,691
Expenditures:
Current:
General government 40,805 40,488 40,819 41,571 41,800 47,383 47,059 51,008 61,651 141,367
Public safety 122,819 127,451 136,163 137,718 145,094 154,921 232,212 163,387 164,544 182,762
Highways and streets 20,984 22,479 20,329 21,401 27,448 27,962 25,692 38,043 49,626 55,354
Sanitation 31,464 34,015 38,671 39,352 43,815 43,758 45,282 49,928 53,015 58,760
Health, education and welfare 24,540 25,380 30,535 29,876 31,109 30,943 41,391 60,639 103,907 72,339
Culture and recreation 20,056 21,561 21,196 21,324 22,022 22,533 22,883 23,964 28,142 32,244
Pension and retirement contributions 38,485 41,359 43,718 49,494 53,137 61,813 70,662 71,593 73,468 80,486
Employees' health insurance 27,731 30,112 32,147 33,802 17,522 18,846 20,107 20,239 20,580 23,554
Other postemployment benefits 4,532 7,180 11,495 14,831 39,637 41,604 38,191 38,439 42,910 44,136
Other 4,686 3,931 3,839 4,622 4,314 8,742 9,165 9,142 9,820 8,958
Debt service:
Principal 22,004 22,432 22,032 86,906 30,577 29,222 32,605 36,691 38,398 71,120
Interest 13,871 12,974 17,289 17,739 19,223 18,590 18,241 18,728 17,673 21,317
Capital outlay 79,398 144,288 111,109 41,924 51,897 79,536 72,439 64,270 104,688 103,995
Total Expenditures 451,375 533,650 529,342 540,560 527,595 585,853 675,929 646,071 768,422 896,392
Revenues over (under) Expenditures (47,182) (111,834) (101,879) (65,508) (3,580) (7,572) 6,066 23,060 57,550 (33,702)
Other Financing Sources (Uses):
Sale of assets 25 66 21 23 47 10 33 199 24 7
Leases 1,971 3,389 3,769 3,809 6,777 2,822 4,901 19,316 11,702 23,262
State Revolving Fund loans - 7,317 8,130 5,154 7,439 174 16,187 - 1,024 12,666
Sale of bonds - 130,136 - 107,116 - - 38,106 - 99,000 -
Issuance of bond anticipation notes (BANs) - - 59,800 - - - - - 28,500 -
Refunding bonds - 106,254 - 48,784 - - 11,254 - - -
Premium on bonds - 23,174 - 5,998 - - 17,745 - 11,879 -
Refunding bonds/BANs issuance costs - (508) - (276) - - (333) - (551) -
Payment to refunded bond escrow agent - (128,920) - (54,537) - - (13,344) - - -
Reclass of debt from current to long-term - - - - - 30,279 - - - -
Transfers in 59,394 57,412 66,864 75,711 77,240 90,199 86,482 92,669 132,379 173,378
Transfers out (59,394) (57,412) (66,864) (75,711) (77,240) (90,199) (86,482) (92,669) (132,379) (173,378)
Total other financing sources 1,996 140,908 71,720 116,071 14,263 33,285 74,549 19,515 151,578 35,936
Net change in fund balances (45,186)$ 29,074$ (30,159)$ 50,563$ 10,683$ 25,713$ 80,615$ 42,575$ 209,128$ 2,234$
Debt service as a percentage of
noncapital expenditures 10.3% 10.0% 10.3% 26.4% 11.7% 10.0% 9.1% 10.8% 9.2% 13.5%
Unaudited - See accompanying report of independent auditors.
Recalculated
COUNTY OF HAWAIʻI
(Amounts in thousands)
(Modified accrual basis of accounting)
Last Ten Fiscal Years
Changes in Fund Balances, Governmental Funds
- 161 -
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per $1000 Land Per $1000 Real Property
2015 Residential 3,234,567$ $ 10.05 3,741,337$ $ 10.05 6,975,904$
Apartment 2,748,462 10.85 1,059,415 10.85 3,807,877
Hotel and Resort 715,560 10.85 591,128 10.85 1,306,688
Commercial 693,488 10.05 759,340 10.05 1,452,828
Industrial 493,660 10.05 522,006 10.05 1,015,666
Agricultural & Native Forest 2,277,788 9.25 2,416,357 9.25 4,694,145
Conservation 41,991 10.85 238,545 10.85 280,536
Homeowners 2,885,636 6.15 2,607,830 6.15 5,493,466
Affordable Rental Housing 109,462 6.15 61,478 6.15 170,940
13,200,614$ 11,997,436$ 25,198,050$
2016 Residential 3,480,591$ $ 10.05 4,199,462$ $ 10.05 7,680,053$
Apartment 2,944,454 10.85 1,102,944 10.85 4,047,398
Hotel and Resort 704,372 10.85 456,088 10.85 1,160,460
Commercial 691,810 10.05 718,840 10.05 1,410,650
Industrial 487,990 10.05 519,955 10.05 1,007,945
Agricultural & Native Forest 2,358,086 9.25 2,540,590 9.25 4,898,676
Conservation 45,651 10.85 242,363 10.85 288,014
Homeowners 2,965,718 6.15 2,727,912 6.15 5,693,630
Affordable Rental Housing 132,752 6.15 73,267 6.15 206,019
13,811,424$ 12,581,421$ 26,392,845$
Fiscal year 2015 total direct rate $9.26
COUNTY OF HAWAIʻI
Real Property Assessed Values by Classification and Tax Rates
Last Ten Fiscal Years
(Values in Thousands)
Fiscal year 2016 total direct rate $9.25
- 162 -
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per $1000 Land Per $1000 Real Property
2017 Residential 4,117,521$ $ 10.05 4,395,220$ $ 10.05 8,512,741$
Apartment 3,287,877 10.85 1,077,230 10.85 4,365,107
Hotel and Resort 751,005 10.85 470,390 10.85 1,221,394
Commercial 741,099 10.05 736,639 10.05 1,477,738
Industrial 504,084 10.05 519,750 10.05 1,023,834
Agricultural & Native Forest 2,746,489 9.25 2,636,805 9.25 5,383,295
Conservation 52,668 10.85 249,458 10.85 302,126
Homeowners 3,323,185 6.15 2,842,257 6.15 6,165,441
Affordable Rental Housing 147,676 6.15 74,531 6.15 222,207
15,671,603$ 13,002,281$ 28,673,884$
2018 Residential 4,468,601$ $ 11.10 4,539,015$ $ 11.10 9,007,616$
Apartment 3,593,358 11.70 1,080,647 11.70 4,674,005
Hotel and Resort 786,420 11.55 511,659 11.55 1,298,079
Commercial 799,591 10.70 749,661 10.70 1,549,252
Industrial 526,130 10.70 550,670 10.70 1,076,800
Agricultural & Native Forest 2,877,993 9.35 2,696,501 9.35 5,574,494
Conservation 53,807 11.55 275,149 11.55 328,956
Homeowners 3,706,817 6.15 2,980,148 6.15 6,686,965
Affordable Rental Housing 171,631 6.15 88,857 6.15 260,488
16,984,348$ 13,472,307$ 30,456,655$
2019 Residential 4,787,668$ $ 11.10 4,686,016$ $ 11.10 9,473,684$
Apartment 3,659,492 11.70 1,059,752 11.70 4,719,244
Hotel and Resort 825,366 11.55 539,060 11.55 1,364,426
Commercial 816,696 10.70 756,976 10.70 1,573,672
Industrial 551,480 10.70 558,490 10.70 1,109,970
Agricultural & Native Forest 2,980,022 9.35 2,888,344 9.35 5,868,366
Conservation 56,722 11.55 283,118 11.55 339,840
Homeowners 4,142,156 6.15 3,179,725 6.15 7,321,881
Affordable Rental Housing 168,101 6.15 86,808 6.15 254,909
17,987,703$ 14,038,289$ 32,025,992$
Continued next page.
Fiscal year 2019 total direct rate $9.88
Fiscal year 2018 total direct rate $9.93
Fiscal year 2017 total direct rate $9.21
- 163 -
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per $1000 Land Per $1000 Real Property
2020 Residential 5,619,312$ $ 11.10 5,261,866$ $ 11.10 10,881,178$
Apartment 3,796,518 11.70 991,947 11.70 4,788,465
Hotel and Resort 819,804 11.55 522,042 11.55 1,341,847
Commercial 812,096 10.70 785,018 10.70 1,597,114
Industrial 560,205 10.70 583,820 10.70 1,144,025
Agricultural & Native Forest 2,587,703 9.35 2,503,492 9.35 5,091,195
Conservation 58,382 11.55 291,080 11.55 349,462
Homeowners 4,600,974 6.15 3,355,127 6.15 7,956,101
Affordable Rental Housing 196,741 6.15 97,347 6.15 294,088
19,051,735$ 14,391,739$ 33,443,474$
2021 Residential Tier I 3,311,054$ $ 11.10 4,302,474$ $ 11.10 7,613,528$
Residential Tier II 2,768,349 13.60 1,193,731 13.60 3,962,080
Apartment 3,893,578 11.70 956,638 11.70 4,850,216
Hotel and Resort 824,785 11.55 525,023 11.55 1,349,808
Commercial 834,804 10.70 809,738 10.70 1,644,542
Industrial 566,179 10.70 611,317 10.70 1,177,496
Agricultural & Native Forest 2,754,945 9.35 2,579,259 9.35 5,334,204
Conservation 59,382 11.55 292,418 11.55 351,800
Homeowners 5,120,276 6.15 3,524,140 6.15 8,644,416
Affordable Rental Housing 212,588 6.15 101,869 6.15 314,457
20,345,940$ 14,896,607$ 35,242,547$
2022 Residential Tier I 3,444,705$ $ 11.10 4,375,739$ $ 11.10 7,820,444$
Residential Tier II 2,823,755 13.60 1,148,116 13.60 3,971,871
Apartment 4,275,078 11.70 968,410 11.70 5,243,488
Hotel and Resort 697,675 11.55 338,244 11.55 1,035,919
Commercial 924,668 10.70 858,704 10.70 1,783,372
Industrial 605,890 10.70 623,644 10.70 1,229,534
Agricultural & Native Forest 2,905,750 9.35 2,640,242 9.35 5,545,992
Conservation 62,730 11.55 279,251 11.55 341,981
Homeowners 5,825,414 6.15 3,800,096 6.15 9,625,510
Affordable Rental Housing 249,233 6.15 117,304 6.15 366,537
21,814,898$ 15,149,750$ 36,964,648$
Continued next page.
Fiscal year 2022 total direct rate $9.98
Fiscal year 2020 total direct rate $9.85
Fiscal year 2021 total direct rate $10.09
- 164 -
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per $1000 Land Per $1000 Real Property
2023 Residential Tier I 4,641,689$ $ 11.10 4,228,054$ $ 11.10 8,869,743$
Residential Tier II 2,881,507 13.60 2,426,749 13.60 5,308,256
Apartment 4,977,813 11.70 1,083,466 11.70 6,061,279
Hotel and Resort 1,111,494 11.55 402,684 11.55 1,514,178
Commercial 1,344,598 10.70 951,805 10.70 2,296,403
Industrial 867,873 10.70 722,473 10.70 1,590,346
Agricultural & Native Forest 3,548,897 9.35 3,121,350 9.35 6,670,247
Conservation 73,531 11.55 301,273 11.55 374,804
Homeowners 6,645,201 6.15 4,020,380 6.15 10,665,581
Affordable Rental Housing 297,916 6.15 140,867 6.15 438,783
26,390,519$ 17,399,101$ 43,789,620$
2024 Residential Tier I 3,824,064$ $ 11.10 5,602,934$ $ 11.10 9,426,998$
Residential Tier II 3,677,505 13.60 2,263,842 13.60 5,941,347
Apartment 6,163,479 11.70 1,232,489 11.70 7,395,968
Hotel and Resort 1,231,828 11.55 453,610 11.55 1,685,438
Commercial 1,360,751 10.70 997,636 10.70 2,358,387
Industrial 875,208 10.70 869,196 10.70 1,744,404
Agricultural & Native Forest 3,583,157 9.35 3,544,869 9.35 7,128,026
Conservation 75,622 11.55 316,247 11.55 391,869
Homeowners 6,927,997 6.15 4,349,818 6.15 11,277,815
Affordable Rental Housing 313,675 6.15 153,568 6.15 467,243
28,033,286$ 19,784,209$ 47,817,495$
Source: County of Hawai‘i, Department of Finance, Real Property Tax Division
NOTES: Assessed value is at 100% of market value.
Property is reassessed annually.
The County Council sets the tax rates annually.
There are no overlapping property tax rates in the County of Hawaii.
Unaudited - See accompanying report of independent auditors.
Fiscal year 2024 total direct rate $10.08
Fiscal year 2023 total direct rate $10.12
- 165 -
Table 6
Percentage Percentage
2023 of Total 2014 of Total
Assessed Assessed Assessed Assessed
Taxpayer Business Valuation Rank Valuation Valuation Rank Valuation
Hilton Resorts Corp. Timeshare 373,565,200$ 1 0.8% 65,578,000$ 9 0.3%
Mauna Kea Resort LLC Developer/Hotel 324,077,900 2 0.7%
Kohanaiki Shores LLC Developer 285,406,500 3 0.6% 188,907,500 2 0.8%
Hualalai Investors LLC Developer/Hotel 241,029,700 4 0.5% 172,881,600 4 0.7%
DHL Mahi Opco LLC Developer/Hotel 222,360,200 5 0.5%
Hilton Land Investment 1 LLC Hotel 170,021,500 6 0.4% 208,557,000 1 0.8%
MAPS Orchid Hotel LLC Hotel 142,409,800 7 0.3%
SMG I Hotel Waikoloa LLC Hotel 100,793,200 8 0.2%
Kona Coast Resort Ltd
Hotel/Condo/
Time Share 87,882,000 9 0.2%
Raptor Residence LLC Residential 75,309,600 10 0.2% 64,747,500 10 0.3%
Mauna Kea/Hapuna Beach Corps.Developer/Hotel 186,842,000 3 0.7%
AG-WP Hapuna Tower Owner, LLC Developer
Mauna Lani Resort Inc. Developer/Hotel 95,384,700 6 0.4%
WB KD Acquisition LLC Developer 66,970,200 7 0.3%
Orchid 09 LLC Hotel 118,298,600 5 0.5%
Target Corporation Retailer 66,635,200 8 0.3%
2,022,855,600$ 4.24% 1,234,802,300$ 4.9%
Note: Gross valuation at January 1, 2024: 47,817,494,577$
Gross valuation at January 1, 2015: 25,198,050,487$
Notes:
Source: County of Hawai‘i, Department of Finance, Real Property Tax Division
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Principal Taxpayers
June 30, 2024 and 2015
Fiscal Year 2024 Fiscal Year 2015
- 166 -
Table 7
*Outstanding
*Total Delinquent
*Current *Current *Percent *Delinquent *Total Collections as *Outstanding Taxes as
Fiscal Tax Tax of Levy Tax Tax Percent of Delinquent Percent of
Year Levy Collections Collected Collections Collections Current Levy Taxes Current Levy
2015 233,255,919$ 227,211,277$ 97% 5,475,818$ $ 232,687,095 100% 568,824$ 0%
2016 244,067,210 237,882,513 97% 5,569,198 243,451,711 100% 615,499 0%
2017 266,398,351 259,074,405 97% 6,659,586 265,733,991 100% 664,360 0%
2018 302,488,275 292,626,959 97% 8,828,914 301,455,873 100% 1,032,402 0%
2019 316,411,763 308,509,000 98% 6,769,583 315,278,583 100% 1,133,180 0%
2020 329,582,761 322,150,258 98% 6,157,661 328,307,919 100% 1,274,842 0%
2021 355,548,695 346,368,351 97% 7,225,841 353,594,192 99% 1,954,503 1%
2022 368,784,271 360,624,384 98% 5,406,254 366,030,638 99% 2,753,633 1%
2023 443,039,998 432,725,590 98% 4,923,184 437,648,774 99% 5,391,224 1%
2024 481,796,744 470,401,210 98% - 470,401,210 98% 11,395,534 2%
* Amounts reflect subsequent adjustments
Source: County of Hawai‘i, Department of Finance, Real Property Tax Division
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Property Tax Levies and Collections
Last Ten Fiscal Years
- 167 -
Table 8
Business-Type
Activities
General State Total Percentage
Fiscal Obligation Revolving Bonds/Notes Primary of Personal Per
Year Bonds (c) Fund Loans Payable Government (a) Income (b) Capita (b)
2015 297,957,249$ 21,552,213$ 2,981,709$ -$ 1,111,392$ 323,602,563$ 4.58% 1,647$
2016 413,986,312 27,463,251 4,916,178 - 1,014,014 447,379,755 5.87% 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
2019 440,439,527 39,693,594 11,579,332 - 697,777 492,410,230 5.79% 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 50,374,202 10,749,906 - 100,691 527,931,439 5.20% 2,602
2022 433,391,228 46,791,175 24,322,453 - 41,501 504,546,357 4.94% 2,446
2023 539,288,025 44,185,361 26,414,087 2,336,482 8,090 612,232,045 5.58% 2,949
2024 474,521,662 49,206,983 30,308,112 12,608,743 - 566,645,500 N/A N/A
NOTES:
(a) Includes governmental activities and business-type activities.
(b) See Table 11 for personal income and population data.
(c) Amounts have been changed for consistency and includes bond anticipation notes.
Details regarding the County's outstanding debt can be found in the notes to the basic financial statements.
Unaudited - See accompanying report of independent auditors.
Leases
COUNTY OF HAWAIʻI
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Total Primary Government
SBITAs
- 168 -
Table 9
Debt Percent of
Applicable to Net Taxable
Fiscal Legal Debt Property Per
Year Margin (a) Value (b) Capita (c)
2015 312,632,049$ 1.2% 1,592$
2016 362,963,113 1.4% 1,829
2017 405,488,342 1.4% 2,024
2018 414,446,063 1.4% 2,062
2019 425,153,552 1.3% 2,110
2020 315,676,941 0.9% 2,047
2021 416,225,798 1.2% 2,051
2022 385,067,012 1.0% 1,866
2023 451,617,291 1.0% 2,175
2024 424,656,464 0.9% 2,045
NOTES:
(a) See Table 10 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable property values.
(c) See Table 11 for population data.
Details regarding the County's outstanding debt can be found in the
notes to the basic financial statements.
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
- 169 -
Table 10
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Debt limit (a) 3,779,708$ 3,958,927$ 4,301,083$ 4,568,498$ 4,803,899$ 5,016,521$ 5,286,382$ 5,544,697$ 6,568,443$ 7,172,624$
Debt applicable to limit (b) 312,632 362,963 405,488 414,446 425,154 315,677 416,226 385,067 451,617 424,656
Legal debt margin (c) 3,467,076$ 3,595,964$ 3,895,595$ 4,154,052$ 4,378,745$ 4,700,844$ 4,870,156$ 5,159,630$ 6,116,826$ 6,747,968$
Debt applicable to the limit
as a percentage of debt limit 8.27% 9.17% 9.43% 9.07% 8.85% 6.29% 7.87% 6.94% 6.88% 5.92%
NOTES:
(a) State finance statutes limit the County's outstanding general debt to no more than 15 percent of the net assessed value of property. See Table 5 for net assessed value of property.
(b) Pursuant to the provisions of Hawaii Revised Statutes Chapter 47C, the 2024 Statement of Funded Debt was published to the Committee on Finance of the County Council
on August 6th, 2024.
(c) The legal debt margin is the County's available borrowing authority under state finance statutes and is calculated by subtracting the net debt applicable to the legal debt
limit from the legal debt limit.
Net assessed value 47,817,495$
Debt limit (15% of net assessed value) 7,172,624$
Debt applicable to limit 424,656
Legal debt margin 6,747,968$
Unaudited - See accompanying report of independent auditors.
Legal Debt Margin Calculation for Fiscal Year 2024
(Amounts in thousands)
COUNTY OF HAWAIʻI
Legal Debt Margin Information
Last Ten Fiscal Years
- 170 -
Table 11
Fiscal *Personal *Per
Year *Resident Income Capita
Ended Population (thousands Personal School Unemployment
June 30, as of July 1 of dollars) Income Enrollment Rate
2014 194,190 6,771,329$ 34,870$ 29,985 6.5%
2015 196,428 7,067,347$ 35,979$ 29,865 5.2%
2016 198,449 7,618,924$ 38,392$ 29,753 4.7%
2017 200,381 8,053,011$ 40,188$ 29,666 3.5%
2018 201,509 8,509,388$ 42,228$ 29,601 3.7%
2019 202,165 8,602,392$ 42,551$ 29,609 4.2%
2020 203,340 9,410,824$ 46,281$ 29,217 13.8%
2021 202,906 10,152,965$ 50,038$ 28,866 6.4%
2022 206,315 10,207,652$ 49,476$ 28,430 4.4%
2023 207,615 10,975,814$ 52,866$ 31,887 3.8%
* Amounts reflect subsequent adjustments
Source: State of Hawai‘i, Department of Business, Economic Development and Tourism,
https://dbedt.hawaii.gov/economic/databook/db2021
State of Hawai‘i, Department of Business, Economic Development and Tourism,
https://dbedt.hawaii.gov/economic/unemployment-statistics
Bureau of Economic Analysis, https://apps.bea.gov/itable/iTable.cfm
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Demographic and Economic Statistics
Last Ten Fiscal Years
- 171 -
Table 12
Percentage Percentage
of Total County of Total County
Employer Employees Rank Employment Employees Rank Employment
State of Hawai‘i 17,300 1 23.4% 8,300 1 12.5%
County of Hawai‘i 2,800 2 3.8% 2,800 2 4.2%
United States Government 1,300 3 1.8% 1,300 3 2.0%
Mauna Kea Beach Hotel 1,135 4 1.5%
KTA Super Stores 800 5 1.1% 750 6 1.1%
Kamehameha Schools Hawai'i Island 677 6 0.9%
Goodwill Hawaii Island 456 7 0.6%
Queen's North Hawai'i Community Hospital 319 8 0.4%
Roberts Hawaii, Inc (Big Island) 308 9 0.4%
Waikoloa Beach Marriot Resort & Spa 307 10 0.4%
Four Seasons Resort Hualalai (a) (a)1,000 4 1.5%
Hilton Waikoloa Village 850 5 1.3%
Mauna Lani Resort (Operations), Inc. 540 9 0.8%
The Fairmont Orchid, Hawaiʻi 650 7 1.0%
Wal-Mart 637 8 1.0%
Hapuna Beach Prince Hotel 500 10 0.8%
Total 25,402 34.3% 17,327 26.2%
Total employee count 74,058 66,535
NOTES:
(a) Exact employee count is unavailable
Source: Hawaiʻi Tourism Authority; State Department of Business, Economic Development & Tourism.
State of Hawai‘i, Hawai‘i Workforce Infonet: https://www.hiwi.org/vosnet/gsipub/documentview.aspx
Unaudited - See accompanying report of independent auditors.
United State Department of Labor, Bureau of Labor Statistics: https://www.bls.gov/regions/west/news-release/countyemploymentand
wages_hawaii.htm
June 30, 2024 and 2015
Principal Employers, County of Hawaii
COUNTY OF HAWAIʻI
2024 2015
- 172 -
Table 13
2015 2016 2017* 2018* 2019* 2020 2021 2022 2023 2024
Function
General government:
County Council 9.00 9.00 9.00 8.00 9.00 9.00 9.00 9.00 9.00 9.00
County Clerk 53.16 54.56 54.16 51.16 52.68 52.56 53.16 49.41 51.96 49.56
Legislative Auditor 5.00 5.00 5.00 4.00 5.00 5.00 4.00 4.00 5.00 5.00
Mayor 19.47 17.48 16.99 16.99 18.74 17.00 18.75 18.75 19.50 19.00
Corporation Counsel 25.00 23.00 26.00 26.00 26.00 25.00 26.00 26.00 27.00 31.00
Finance 134.49 131.49 151.00 153.49 152.46 133.00 150.00 148.48 150.48 148.88
Human Resources 25.49 25.49 25.49 23.49 24.80 23.00 23.00 28.00 26.00 30.00
Planning 50.00 53.00 56.00 53.00 60.00 66.00 73.00 79.00 72.00 72.00
Research & Development 14.49 16.00 14.49 12.00 14.00 14.00 14.49 17.00 24.00 29.00
Information Technology 19.00 19.00 21.00 20.00 18.00 17.00 18.00 17.00 21.00 28.00
Public Works Admin & Building 164.28 167.49 172.49 167.75 170.49 195.00 151.00 149.00 142.48 145.00
Sustainability, Climate, Equity & Resilience - - - - - - - - - 1.00
Public Safety:
Police 564.50 564.75 572.00 550.50 553.00 559.25 556.00 567.75 540.50 561.92
Fire 436.57 433.07 434.58 425.57 441.07 460.57 451.58 453.58 454.72 477.22
Animal Control & Protection - - - - - - - - - 48.00
Liquor Control 13.00 16.00 17.00 17.00 15.50 15.00 16.00 18.50 15.50 15.50
Civil Defense 7.00 7.00 7.00 7.00 7.00 8.00 10.00 10.00 9.00 11.00
Prosecuting Attorney 105.97 108.97 108.97 111.49 111.00 102.49 99.48 94.48 101.48 108.00
Highways and Streets:
Mass Transit 11.00 12.00 10.00 12.00 13.00 16.00 16.00 15.00 17.40 21.08
Traffic and Highways 175.48 175.48 177.48 187.48 189.48 188.00 202.48 204.48 214.48 210.48
Sanitation:
Administration 19.49 17.98 19.98 18.98 19.00 18.98 17.00 19.00 19.00 19.00
Sewer 47.49 46.49 45.49 48.49 47.49 52.97 56.49 56.97 59.49 59.00
Vehicle Disposal 2.00 2.00 2.00 3.00 2.00 2.48 3.00 1.00 3.00 4.00
Solid Waste 103.00 104.00 102.00 103.00 101.00 110.00 109.00 118.00 108.00 111.00
Health, Education and Welfare:
Housing 46.00 46.00 47.00 48.00 48.00 50.00 50.00 54.00 58.55 60.00
Aging 9.00 13.00 15.00 16.00 14.50 15.50 15.00 15.00 15.00 14.00
Culture and Recreation 362.40 356.84 369.29 372.33 378.50 415.19 346.79 379.75 390.52 380.65
Total 2,422.28 2,425.09 2,479.41 2,456.72 2,491.71 2,570.99 2,489.22 2,553.15 2,555.06 2,668.29
Source: County of Hawai‘i, Department of Finance
Unaudited - See accompanying report of independent auditors.
Last Ten Fiscal Years
COUNTY OF HAWAIʻI
Full-Time Equivalent County Government Employees by Function
- 173 -
Table 14
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Public Safety:
Police:
DUI arrests 1,035 1,113 1,083 1,170 1,081 952 1,170 1,029 955 964
Traffic citations issued 60,016 67,289 69,611 68,535 37,305 34,454 34,892 70,718 77,308 77,647
Fire:
Fire responses 700 700 731 811 832 881 1,010 1,066 1,073 861
Emergency medical/rescue responses 18,750 17,834 17,178 18,005 17,884 18,048 18,080 20,999 22,555 22,797
Inspections - Occupancy/Fire Protective Equipment 1,262 1,000 1,298 951 597 699 802 976 730 749
Animal Control & Protection:
Animal Intakes - - - - - - - - - 2,905
Animals Returned to Owners - - - - - - - - - 407
Animals Transferred to Adoption Agencies - - - - - - - - - 1,310
Citations Issued - - - - - - - - - 94
Sanitation:
Refuse disposed (tons per year) 179,033 188,758 195,162 224,196 223,823 207,172 196,630 203,872 204,924 218,631
Highways and Streets:
In-house street resurfacing (miles) 6 21 24 13 36 - 25 16 27 34
Parks and Recreation:
Pavilion permits issued 2,482 2,552 2,513 2,417 1,951 1,259 778 1,432 2,639 2,525
Camping permits issued 6,207 6,688 7,345 8,394 6,910 5,769 1,133 8,011 9,472 8,635
Rounds of golf 65,093 57,325 58,874 58,504 57,488 48,704 67,831 62,561 60,805 58,792
Zoo attendance 214,249 251,436 264,415 269,453 283,807 208,384 - 362,000 357,000 354,000
Transit:
Bus passengers 944,738 874,424 766,472 742,250 511,412 416,747 257,489 473,073 859,724 987,307
Public Works:
Building permits issued 5,494 4,833 3,214 3,672 4,009 3,245 3,555 4,898 6,616 3,708
Electrical permits issued 5,645 4,232 3,509 4,077 3,766 3,919 4,420 514 16 579
Plumbing permits issued 1,897 1,819 1,801 1,914 1,891 1,998 2,298 280 9 70
Sign permits issued 44 47 39 45 51 35 36 31 50 30
Source: County of Hawai‘i, Individual Departments
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Operating Indicators by Function
Last Ten Fiscal Years
- 174 -
Table 15
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function
Public Safety:
Police:
Stations 8888777777
Substations 810101011 7 7 8 88
Fire stations 21 21 21 21 20 20 20 20 20 20
Animal Control & Protection Shelters - - - - - - - - - 2
Highways and Streets:
County streets (miles) 956 956 991 990 1,000 1,002 1,002 1,010 1,016 1,030
Streetlights 10,366 10,655 10,771 11,310 11,331 11,472 11,561 11,513 11,574 11,592
Parks and Recreation:
Parks 146 147 151 151 151 151 150 150 150 150
Gyms and recreation centers 62626565656564646464
Sanitation:
Sanitary sewers (miles) 105* 105* 105* 105* 105* 106* 106* 106* 120* 120*
*GIS database utilized beginning FY 2008
Source: County of Hawai‘i, Individual Departments
Unaudited - See accompanying report of independent auditors.
COUNTY OF HAWAIʻI
Capital Asset Statistics by Functions
Last Ten Fiscal Years
- 175 -