HomeMy WebLinkAbout2008 CAFR Part 2 i
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BASIC FINANCIAL STATEMENTS
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COUNTY OF HAWAII
Statement of Net Assets
June 30,2008
Primary Government I
Governmental Business-type Component
Activities Activities Total Unit
Assets
Current assets:
Cash and cash equivalents(notes 3 and 14) $124,869,817 $ 214,047 $125,083,864 $ 3,855,521
Restricted cash and cash equivalents(note 3) 70,642 33,018 103,660 -
Investments(notes 3 and 14) 132,264,389 700,000 132,964,389 42,226,609
Receivables,net(note 4) 30,402,811 57,458 30,460,269 5,098,837
Receivable from improvement district
(notes 4 and 10) 89,181 - 89,181 -
Internal balances(note 5) 2,700 (2,700) - -
Inventories 1,883,804 - 1,883,804 1,290,752
Prepaid expenses - 1,474 1,474 213,535
Other 2,202,209 - 2,202,209 -
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Total current assets 291,785,553 1,003,297 292,788,850 52,685,254
Restricted cash and cash equivalents(note 3) - 199,141 199,141 -
Restricted investments(note 14) - - - 19,739,823
Loans receivable,excluding current portion - - - 278,028
Receivable from improvement district,excluding
current portion(notes 4 and 10) 3,629,954 - 3,629,954 -
Deferred charges - - - 7,035,638
Capital assets(notes 6,8 and 14): i
Utility plant in service,net - - - 149,664,692
Infrastructure assets,net 162,915,082 - 162,915,082 -
Ground and site improvements,net - 82,598 82,598 -
Buildings and improvements,net 247,018,221 428,189 247,446,410 -
Equipment,net 45,506,721 13,652 45,520,373 -
Construction work in progress 125,041,851 - 125,041,851 54,199,264
Land 28,187,574 753,877 28,941,451 1,116,933
Total capital assets,net 608,669,449 1,278,316 609,947,765 204,980,889
Total noncurrent assets 6121299,403 1,477,457 613,776,860 232,034,378
Total assets 904,084,956 2,480,754 906,565,710 284,719,632
(Continued)
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COUNTY OF HAWAII
Statement of Net Assets
June 30,2008
(Concluded)
Primary Government
Governmental Business-type Component
Activities Activities Total Unit
Liabilities
Current liabilities: i
Accounts payable and accrued liabilities $ 10,291,330 $ 403,061 $ 10,694,391 $ 3,159,012
Unearned revenue(note 7) 8,862,526 6,830 8,869,356 -
Interest due on long-term debt 5,295,619 - 5,295,619 1,157,436
Bonds and loans payable,current portion net
(notes 10 and 14) 18,407,529 26,798 18,434,327 2,236,000
Compensated absences,current portion(note 10) 7,375,050 - 7,375,050 1,447,119
Postretirement liability - - - 948,077
Claims and judgments,current portion
(notes 10, 12 and 14) 3,671,816 - 3,671,816 25,949
Capital leases,current portion(notes 8 and 10) 1,380,474 - 1,380,474 -
Landfill costs payable,current portion -
(notes 9 and 10) 178,202 - 178,202 -
Customers'deposits for service connections - - - 632,885
Other 4,954,149 - 4,954,149 -
Total current liabilities 60,416,695 436,689 60,853,384 9,606,478
Noncurrent liabilities:
Bonds and loans payable,net
(notes 10 and 14) 270,477,206 944,094 271,421,300 39,011,094
Compensated absences(note 10) 20,595,011 - 20,595,011 1,146,476
Claims and judgments(notes 10, 12 and 14) 15,816,595 - 15,816,595 90,051
Capital leases(notes 8 and 10) 3,226,053 - 3,226,053 -
Landfill costs payable(notes 9 and 10) 20,071,798 - 20,071,798 -
Customers'deposits payable from
restricted assets - - - 19,739,823
Total noncurrent liabilities 330,186,663 944,094 331,130,757 59,987,444
Total liabilities 390,603,358 1,380,783 391,984,141 69,593,922
Net Assets
Invested in capital assets,net of
related debt 419,174,559 307,424 419,481,983 186,215,025
Restricted for:
Capital projects 44,818,889 - 44,818,889 -
Debt service(note 10) 22,159,046 184,352 22,343,398 -
Unrestricted 27,329,104 608,195 27,937,299 28,910,685
Total net assets $513,481,598 $ 1,099,971 $514,581,569 $215,125,710
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See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30,2008
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Proerams Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government $ 68,794,961 $ 6,017,819 $ 4,946,657 $ 3,677,503
Public safety 137,500,608 5,843,733 20,235,953 165,261
Highways and streets 33,577,707 9,701,815 522,500 5,023,928
Health,education and welfare 14,986,972 754,758 19,051,719 -
Culture and recreation 20,450,172 1,595,409 263,830 48,302
Sanitation 41,254,728 18,643,952 1,096,740 412,414
Interest on long-term debt 13,117,325 - - -
Total governmental activities 329,682,473 42,557,486 46,117,399 9,327,408
Business-type activities:
Health,education and welfare 556,304 365,655 125,795 -
Total primary government $ 330,238,777 $ 42,923,141 $ 46,243,194 $ 9,327,408
Component unit:
Water(note 14) $ 45,100,592 $ 38,341,485 $ - $ 5,673,845
General revenues:
Taxes:
Property taxes,levied for general purposes
Public service company taxes
Franchise taxes
Fuel taxes
Grants and contributions not restricted to specific programs
Investment earnings
Miscellaneous
Total general revenues
Change in net assets
See accompanying notes to the basic financial statements.
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Net(Expense)Revenue and Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Unit
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$ (54,152,982) $ - $ (54,152,982) $ -
(111,255,661) - (111,255,661) -
(18,329,464) - (18,329,464) -
4,819,505 - 4,819,505 -
(18,542,631) - (18,542,631) -
(21,101,622) - (21,101,622) -
(13,117,325) - (13,117,325) -
(231,680,180) - (231,680,180) -
(64,854) (64,854) -
(231,680,180) (64,854) (231,745,034) -
(1,085,262)
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210,217,690 - 210,217,690 -
8,381,367 - 8,381,367 -
9,026,841 - 9,026,841 -
7,887,998 - 7,887,998 -
19,395,089 - 19,395,089 -
11,454,850 33,828 11,488,678 2,539,130
7,801,194 - 7,801,194 66,437
274,165,029 33,828 274,198,857 2,605,567
42,484,849 (31,026) 42,453,823 1,520,305
470,996,749 1,130,997 472,127,746 213,605,405
$ 513,481,598 $ 1,099,971 $514,581,569 $215,125,710 j
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COUNTY OF HAWAII
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Governmental Funds
Balance Sheet
June 30,2008
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Other Total
Solid Waste Capital Governmental Governmental
General Fund Projects Funds Funds
Assets #
Cash and cash equivalents(note 3) $26,556,547 $ 6,722,373 $ 41,554,822 $50,036,075 $124,869,817
Investments(note 3) 21,737,535 - 107,227,664 3,299,190 132,264,389
Receivables,net(note 4) 9,536;438 2,510,647 855,019 1,029,112 13,931,216
Due from other governmental
funds(note 5) 466,579 - 511,459 60,597 1,038,635
Due from other nongovernmental
funds(note 5) - - - 2,700 2,700 '
Receivables from other
governments(note 4) 8,076,217 741,299 6,271,541 1,382,538 16,471,595
Restricted cash with escrow(note 3) 70,642 - - - 70,642 ;
Inventories 1,883,804 - - - 1,883,804
Other 275,544 858,398 - 1,068,267 2,202,209
Total assets $68,603.306 10,832,717 $ 156,420,505 $56,878,479 $292,735,007 j
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 2,710,877 $ 1,522,241 $ 5,169,538 $ 888,674 $ 10,291,330
Due to other governmental
funds(note 5) 268,996 18,410 - 751,229 1,038,635
Deferred revenue(note 7) 12,321,305 2,522,645 6,065,660 1,029,112 21,938,722
Other 4,431,777 1,981 - 520,393 4,954,151
Total liabilities 19,732,955 4,065,277 11,235,198 3,189,408 38,222,838
Fund balances:
Reserved for:
Encumbrances 14,465,089 3,543,281 74,171,831 10,200,798 102,380,999
Inventories 1,883,804 - - - 1,883,804
Taxicab investigations 56,223 - - - 56,223
Liquor control 1,063,490 - - - 1,063,490
Unexpended allotments - - 31,897,111 - 31,897,111
Debt service(note 10) - - - 22,159,046 22,159,046
Unreserved,reported in:
General fund 31,401,745 - - - 31,401,745
Special revenue funds - 3,224,159 - 21,329,227 24,553,386
Capital projects funds - - 39,116,365 - 39,116,365
Total fund balances 48,870,351 6,767,440 145,185,307 53,689,071 254,512,169
Total liabilities and fund balances $68,603.306 $10,832,717 $ 156,420,505 $56,878,479 $292,735,007
See accompanying notes to the basic fmancial statements.
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COUNTY OF HAWAII
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets
June 30,2008
Total fund balances-governmental funds $254,512,169
Amounts reported for governmental activities in the statement of
net assets 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:
Land 28,187,574
hifrastructure assets,net 162,915,082
Buildings and improvements,net 247,018,221
Equipment,net 45,506,721
Construction work in progress 125,041,851
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Total capital assets 608,669,449
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 deferred(unearned)in the funds.(note 7) 13,076,196
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of: i
Bonds and loans payable,net of receivable j
from improvement district (285,165,598)
Accrued interest on bonds (5,295,619)
Capital leases (4,6065527)
Compensated absences (27,970,061)
Claims and judgments (19,488,411)
Landfill closure/postclosure costs (20,250,000)
Total long-term liabilities (362,776,216)
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Net assets of governmental activities $513,481,598
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
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Governmental Funds
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Statement of Revenues,Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2008
Other Total
Solid Waste Capital Governmental Governmental
General Fund Projects Funds Funds
Revenues
Property tax $208,312,512 $ - $ - $ - $208,312,512
Public service company tax 8,381,367 - - - 8,381,367
Fuel tax - - - 7,887,998 7,887,998
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Public utility franchise tax - - - 9,026,841 9,026,841
Licenses and permits 6,661,522 - - 9,256,851 15,918,373
Intergovernmental 50,938,534 1,095,570 3,682,333 16,884,772 72,601,209
Charges for services 5,846,222 9,214,024 - 7,093,242 22,153,488
Investment earnings 11,873,878 - - 270,360 12,144,238
Miscellaneous 2,999,289 33,317 2,378,502 1,739,912 7,151,020
Total revenues 295,013,324 10,342,911 6,060,835 52,159,976 363,577,046
Expenditures -
Current:
General government 42,991,456 - - - 42,991,456
Public safety 98,503,333 - - 5,114,080 103,617,413
Highways and streets 6,173,539 - - 13,355,369 19,528,908
Sanitation 1,511,958 24,879,104 - 7,013,417 33,404,479 j
Health,education and welfare 6,875,072 - - 17,733,898 24,608,970
Culture and recreation 17,285,846 - - 893,215 18,179,061 {
Pension and retirement +
contributions(note 13) 20,623,684 945,336 - 2,726,522 24,295,542
Employees'health insurance 16,685,393 394,024 - 1,009,689 18,089,106
Other post employment benefits 13,628,777 13,628,777
Miscellaneous 4,246,245 135,865 - 961,945 5,344,055
Debt service:
Principal 379,409 1,274,527 - 14,894,455 16,548,391 j
Interest 33,468 154,633 - 12,927,949 13,116,050
Capital outlay 6,094,391 - 64,061,348 - 70,155,739
Total expenditures 235,032,571 27,783,489 64,061,348 76,630,539 403,507,947
Excess(deficiency)of revenues
over expenditures 59,980,753 (17,440,578) (58,000,513) (24,470,563) (39,930,901)
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(Continued)
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COUNTY OF HAWAII i
Governmental Funds i
Statement of Revenues,Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2008
(Concluded)
Other Total
Solid Waste Capital Governmental Governmental
General Fund Projects Funds Funds
Other Financing Sources(Uses),including transfers j
Sale of assets $ 3,469,848 $ - $ - $ - $ 3,469,848
Increase in capital leases(note 8 and 10) 228,120 1,959,382 - - 2,187,502
State Revolving Fund loans(note 10) - - 1,916,040 - 1,916,040 s
Transfers in(note 5) - 17,352,726 13,979,919 33,596,734 64,929,379
Transfers out(note 5) (59,058,541) - - (5,870,838) (64,929,379) j
Total other financing sources(uses) (55,360,573) 19,312,108 15,895,959 27,725,896 7,573,390
Net change in fund balances 4,620,180 1,871,530 (42,104,554) 3,255,333 (32,357,511)
Fund balance at beginning of year 44,610,351 4,895,910 187,289,861 50,433,738 287,229,860
Decrease in reserve for inventories (360,180) - - - (360,180)
Fund balance at end of year $ 48,870,351 $ 6,767,440 $145,185,307 $53,689,071 $254,512,169
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30,2008
Net change in fund balances-total governmental funds $ (32,357,511)
Amounts reported for governmental activities in the statement of activities are
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different because:
Capital outlays are reported as expenditures in governmental funds. {
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However,in the statement of activities,the cost of capital assets is
allocated over their estimated useful lives as depreciation expense. In
the current period,these amounts are:
Capital outlay and dedicated property 84,425,791
Depreciation expense and loss on disposals (21,678,112)
Excess of capital outlay over depreciation expense 62,747,679
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Borrowings provide current financial resources to governmental funds;
however,issuing debt increases long-term liabilities in the statement
of net assets. In the current period,proceeds were received from:
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General obligation bonds,net of refunding -
Premium on bond issuance -
Deferred amount on refunding of bonds -
SRF loan obligations (1,916,040) j
Capital lease obligations (2,187,502)
Total debt proceeds (4,103,542)
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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 assets. In the current year,these amounts consist of:
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Bond principal retirement,net of refunding 12,096,138
SRF loan repayment 2,786,605
Capital lease payments 1,666,711
Total long-term debt repayment 16,549,454
Because some revenues will not be collected for several months after the
County's fiscal year end,they are not considered"available"revenues and f
are"deferred"in the governmental funds. Unearned revenues increased by {
this amount this year. 2,422,309
(Continued) !
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COUNTY OF HAWAII
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Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
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For the Fiscal Year Ended June 30,2008
(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:
Decrease in inventory $ (360,180)
Increase in compensated absences (2,221,903)
Increase in claims and judgments (1,180,119)
Decrease in landfill closurelpostclosure care costs 991,000
Amortization of premium from bond issuance 271,008 y
Amortization of deferred amount on refunding of bonds (248,722)
Net increase in accrued interest (24,624)
Net additional expenditures (2,773,540)
Change in net assets of governmental activities $ 42,484,849
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
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General Fund
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Statement of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
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For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Taxes and assessments:
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Real property taxes $ 211,455,000 $ 211,455,000 $ 208,312,512 $ (3,142,488) i
Public service company taxes 7,050,000 7,050,000 8,381,367 1,331,367
Total taxes and assessments 218,505,000 218,505,000 216,693,879 (1,811,121)
Licenses and permits:
Nonbusiness licenses and permits 4,483,105 4,483,105 3,695,364 (787,741)
Business.licenses 1,580,000 1,580,000 1,384,748 (195,252)
Street use 1,673,000 1,673,000 1,581,410 (91,590)
Total licenses and permits 7,736,105 7,736,105 6,661,522 (1,074,583)
Intergovernmental:
Federal:
Programs for the aged 2,622,247 2,622,247 2,052,800 (569,447)
Community development block grants - 2,386,152 2,386,152 -
HOME program grant - 989,346 989,346 -
Law enforcement 1,352,629 2,922,012 2,098,023 (823,989) {
Other 2,827,582 4,136,560 3,973,327 (163,233) !
Total federal 6,802,458 13,056,317 11,499,648 (1,556,669)
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State General Fund-Act 185, 1
SLH 1990 20,310,000 20,310,000 19,099,355 (1,210,645)
Emergency medical services 12,277,306 12,383,744 13,551,762 1,168,018
Other 4,186,215 5,328,831 4,948,412 (380,419)
Child support enforcement 1,092,596 1,092,596 250,941 (841,655)
Total State 37,866,117 39,115,171 37,850,470 (1,264,701)
Total intergovernmental revenue 44,668,575 52,171,488 49,350,118 (2,821,370) j
Charges for current services:
General government 4,135,149 4,135,149 4,610,292 475,143
Culture and recreation 872,070 872,070 849,117 (22,953)
Highways and streets 243,500 243,500 287,668 44,168
Public safety 124,105 124,105 99,145 (24,960)
Total charges for current services 5,374,824 5,374,824 5,846,222 471,398
Fines and forfeitures 1,590,900 1,590,900 1,486,382 (104,518)
Rents 119,431 119,431 91,238 (28,193)
(Continued)
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COUNTY OF HAWAII
General Fund
Statement of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008 j
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative) ;-
Revenues(continued):
Interest and penalties $ 4,000,000 $ 4,000,000 $ 11,519,300 $ 7,519,300
Miscellaneous 5,280,730 7,905,367 8,346,070 440,703
Total revenues 287,275,565 297,403,115 299,994,731 2,591,616
Expenditures:
Current: a
General government:
Finance 10,264,645 10,468,449 8,962,427 1,506,022
General government building 6,599,335 7,383,601 6,033,853 1,349,748
Legislative 7,697,890 4,621,805 3,984,241 637,564
Automotive equipment 4,750,889 4,745,389 4,178,827 566,562
Law 3,813,836 3,813,836 2,952,695 861,141
Research and development 3,671,464 4,138,475 3,979,936 158,539
Planning and zoning 3,232,158 3,354,902 3,103,879 251,023
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Mayor's office 1,734,772 1,884,095 1,777,795 106,300
Engineering 4,023,528 4,056,037 3,807,722 248,315 s`
Data systems 1,453,812 1,453,812 1,383,085 70,727
Personnel services 1,945,661 1,953,213 1,808,567 144,646
Public works administration 1,360,836 1,556,177 1,429,916 126,261
Elections 1,189,325 1,189,325 880,673 308,652
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Total general government 51,738,151 50,619,116 44,283,616 6,335,500
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Public safety:
Police department 45,459,709 49,711,673 48,389,502 1,322,171
Fire department 32,854,361 35,915,587 35,462,590 452,997
Prosecuting attorney 8,116,608 8,793,156 7,560,495 1,232,661
Protective inspection 2,217,840 2,233,312 1,947,998 285,314
Liquor control 1,528,112 1,558,112 1,132,224 425,888
Flood control 1,177,502 1,259,017 1,258,827 190
Civil defense agency 1,067,661 2,070,539 1,671,776 398,763
Animal control 1,209,292 1,929,779 1,929,779 -
Total public safety 93,631,085 103,471,175 99,353,191 4,117,984
Highways and streets:
Mass transit 5,129,651 5,375,651 5,059,597 316,054
(Continued) s
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COUNTY OF HAWAII
General Fund
Statement of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
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For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Expenditures(continued):
Current(continued):
Sanitation:
Environmental management $ 1,579,832 $ 1,881,491 $ 1,591,582 $ 289,909
Health,education and welfare:
Elderly activities 3,423,477 3,473,794 3,034,271 439,523 t
Office of Aging 2,730,129 2,712,257 2,100,834 611,423
Education 65,000 65,000 42,913 22,087
Social programs 1,500,000 1,500,000 1,477,500 22,500
Cemeteries 330,506 379,111 366,329 12,782
Physical examination 102,942 120,958 120,957 1 -
Total health,education and welfare 8,152,054 8,251,120 7,142,804 1,108,316
Culture and recreation:
Community music 433,204 423,304 239,440 183,864
Organized recreation:
Maintenance 6,955,304 6,855,175 6,636,359 218,816
Recreation 2,422,566 2,651,785 2,552,492 99,293
Aquatics 2,204,196 2,199,795 2,024,670 175,125
Hoolulu Park complex 951,280 1,009,180 999,192 9,988
Administration 2,247,209 2,275,509 2,155,718 119,791
Children's zoo 617,311 608,511 589,228 19,283
SummerlIntersession 478,365 478,365 314,517 163,848
Culture and arts 153,906 202,086 183,352 18,734 i
Elderly activities administration, 684,014 706,557 661,931 44,626
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Total culture and recreation 17,147,355 17,410,267 16,356,899 1,053,368
Pension and retirement contributions 21,038,693 20,403,693 20,445,006 (41,313)
Health fund 29,523,500 30,358,500 30,314,170 44,330
Miscellaneous 10,320,000 4,660,461 3,315,005 1,345,456
Total current 238,260,321 242,431,474 227,861,870 14,569,604
(Continued)
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COUNTY OF HAWAII
General Fund
Statement of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
(Concluded)
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
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Expenditures(continued):
Capital Outlay:
Community Development Block
grants(HUD) $ - $ 2,446,152 $ 2,446,152 $ -
HOME Program - 1,014,346 1,014,346 -
Other - - - -
Total capital outlay - 3,460,498 3,460,498 -
Total expenditures 238,260,321 245,891,972 231,322,368 14,569,604
Excess of revenues over expenditures 49,015,244 51,511,143 68,672,363 17,161,220
Other financing uses:
Transfers out:
Sewer Fund -- (20,000) (20,000) -
Capital Projects Fund (6,229,975) (8,109,081) (8,109,081) -
Housing Fund (1,251,612) (1,397,612) (1,397,612) -
Solid Waste Fund (17,302,726) (17,352,726) (17,352,726) -
Golf Course Fund (350,000) (415,792) (415,792) -
Highway Fund (210,000) (545,000) (545,000) -
Self Insurance Fund (1,000,000) (1,000,000) (1,000,000) -
Disaster/Emergency Fund (1,600,000) (1,600,000) (1,600,000) -
Public Access,Open Space,and Natural
Resources Preservation Fund (4,314,000) (4,314,000) (4,165,208) 148,792
Budget Stabilization Fund - -- - -
Debt Service Fund (35,736,486) (35,736,486) (34,672,883) 1,063,603
Total transfers out (67,994,799) (70,490,697) (69,278,302) 1,212,395
Total other financing uses (67,994,799) (70,490,697) (69,278,302) 1,212,395
Excess(deficiency)of revenues and other
sources over expenditures and other uses (18,979,555) (18,979,554) (605,939) 18,373,615
Fund balance at beginning of year 44,610,351 44,610,351 44,610,351 -
Fund balance at end of year $ 25,630,796 $ 25,630,797 $ 44,004,412 $ 18,373,615
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
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Solid Waste Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Intergovernmental $ 1,173,309 $ 1,173,309 $ 1,003,682 $ (169,627)
Charges for services-tipping fees 12,013,000 12,013,000 9,214,024 (2,798,976)
Miscellaneous - - 33,317 33,317
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Total revenues 13,186,309 13,186,309 10,251,023 (2,935,286)
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Expenditures:
Sanitation 28,578,835 28,628,835 25,949,496 2,679,339
Pension and retirement contributions 1,059,800 1,059,800 945,336 114,464
Health fund 630,400 630,400 394,024 236,376
Miscellaneous 220,000 220,000 137,277 82,723
Total expenditures 30,489,035 30,539,035 27,426,133 3,112,902
Deficiency of revenues over expenditures (17,302,726) (17,352,726) (17,175,110) 177,616
Other financing sources:
Transfers in General Fund 17,302,726 17,352,726 17,352,726 -
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Excess of revenues and other sources
over expenditures - - 177,616 177,616
Fund balance at beginning of year 4,895,910 4,895,910 4,895,910 -
Fund balance at end of year $4,895,910 $4,895,910 $5,073,526 $ 177,616
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See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
Proprietary Funds {
Statement of Net Assets
June 30,2008 j
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Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Assets 1
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Current assets:
Cash and cash equivalents(note 3) $ 16,060 $ 197,837 $ 213,897
Restricted cash and cash equivalents(note 3) 11,856 21,162 33,018
Investments(note 3) 700,000 - 700,000
Imprest fund(note 3) 50 100 150
Receivables(note 4) 7,726 49,732 57,458
Prepaid expenses 1,474 - 1,474
Total current assets 737,166 268,831 1,005,997
Noncurrent assets:
Restricted cash and cash equivalents(note 3) 184,327 14,814 199,141
Capital assets(note 6):
Land and site improvements 511,000 503,877 1,014,877
Buildings and equipment 1,232,049 - 1,232,049
Less accumulated depreciation (968,610) - (968,610)
Total capital assets 774,439 503,877 1,278,316
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Total noncurrent assets 958,766 518,691 1,477,457 j
Total assets 1,695,932 787,522 2,483,454 2
Liabilities
Current liabilities: '
Accounts payable 5,098 358,600 363,698
Internal balances(note 5) 2,700 - 2,700
Due to developer - 7,729 7,729
Security deposits payable from restricted assets 11,856 19,778 31,634
Deferred revenue(note 7) 5,212 1,618 6,830
Notes payable,current portion(note 10) 26,798 - 26,798
Total current liabilities 51,664 3871725 439,389
Noncurrent liabilities:
Notes payable(note 10) 944,094 - 944,094
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Total liabilities 995,758 387,725 1,383,483
Net Assets
Invested in capital assets,net of related debt (196,453) 503,877 307,424
Restricted for debt service 184,352 - 184,352
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Unrestricted 712,275 (104,080) 608,195 j
Total net assets $ 700,174 $ 399,797 $ 1,099,971 '
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See accompanying notes to the basic fmancial statements.
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Proprietary Funds
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Statement of Revenues,Expenses,and Changes in Fund Net Assets
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For the Fiscal Year Ended June 30,2008
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Operating revenues:
Rental receipts from tenants $ 110,288 $ 249,747 $ 360,035
Rental subsidy from federal government-HUD 125,795 - 125,795
Laundry receipts 2,400 - 2,400
Miscellaneous - 3,220 3,220
Total operating revenues 238,483 252,967 491,450
Operating expenses:
Utilities 38,634 25,408 64,042
General and administration 82,716 117,934 200,650
Maintenance and repairs 102,332 37,651 139,983
Lease expense - 48,893 48,893
Depreciation(note 6) 33,786 - 33,786
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Total operating expenses 257,468 229,886 487,354
Operating(loss)income (18,985) 23,081 4,096
Nonoperating revenues(expenses):
Investment income 33,762 66 33,828
Interest expense (68,950) - (68,950) a
Total nonoperating revenue(expenses) (35,188) 66 (35,122)
Change in net assets (54,173) 23,147 (31,026) 1
Net assets,beginning of year 754,347 376,650 1,130,997
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Net assets,end of year $ 700,174 $ 399,797 $ 1,099,971
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See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30,2008
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Cash Flows from Operating Activities
Receipts from tenants $ 118,266 $ 254,474 $ 372,740
Receipts from federal government-HUD . 125,795 - 125,795
Payments to suppliers for goods and services (272,636) (227,410) (500,046)
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Net cash provided by(used in)operating activities (28,576) 27,064 (1,512
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable (24,962) - (24,962)
Interest paid on notes payable (68,950) - (68,950)
Purchase of capital assets (5,838) - (5,838)
Net cash used in capital and related financing activities (99,750) - (99,750)
Cash Flows from Investing Activities
Purchase of investments (1,400,000) - (1,400,000)
Proceeds from maturities of investments 1,400,000 - 1,400,000
Interest on investments 33,835 80 33,915
Net cash provided by investing activities 33,835 80 33,915
Net increase(decrease)in cash and cash equivalents (94,491) 27,144 (67,347)
Cash and cash equivalents at beginning of year 306,783 206,769 513,552
Cash and cash equivalents at end of year $ 212,293 $ 233,913 $ 446,206
Reconciliation of Operating(Loss)Income to Net Cash
Provided by(Used in)Operating Activities
Operating(loss)income $ (18,985) $ 23,081 $ 4,096
Adjustments to reconcile operating loss to net cash
provided by(used in)operating activities:
Depreciation expense 33,786 - 33,786
Change in assets and liabilities:
Receivables 479 2,214 2,693
Prepaid expenses (105) - (105) it
Accounts and other payables (47,618) 1,664 (45,954)
Unearned income 3,867 105 3,972
Net cash provided by(used in)operating activities $ (28,576) $ 27,064
Supplemental disclosure of cash flow information-Interest paid $ 68,950 $ - $ 68,950
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
Fiduciary Funds
Statement of Fiduciary Net Assets
June 30,2008
Private-
Purpose Agency
Trusts Funds i
Assets
Cash and cash equivalents(note 3) $ 1,880,747 $ 3,655,354
Investments(note 3) 2,868,795 1,630,130
Receivables:
Due from other agency funds - 2,409
Other receivables 2,727 83,781
Total receivables 2,727 86,190
Restricted cash and cash equivalents(note 3) - 637,000
Total assets 4,752,269 $ 6,008,674
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Liabilities
Due to other agency funds - 2,409
Accrued liabilities - 2,300,082
Advances payable - 229,786
Assets held for benefit of improvement districts - 3,476,397
Total liabilities - $ 6,008,674
Net Assets
Held in trust for other parties 4,752,269 {
Total net assets $ 4,752,269
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See accompanying notes to the basic financial statements.
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COUNTY OF HAWAII
Fiduciary Funds j
Statement of Changes in Fiduciary Net Assets
For the Fiscal Year Ended June 30,2008
Private- a
Purpose
Trusts
Additions
Contributions: j
Puna Geothermal Venture $ 50,000 i
Investment earnings:
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Net decrease in fair value of investments (132,212) 1
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Dividends 48,203
Interest 131,570
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Total additions 97,561
Deductions '
Appraisal fees 97,640
Total deductions 97,640
Change in net assets (79)
Net assets,beginning of year 4,752,348 i
Net assets,end of year $ 4,752,269
See accompanying notes to the basic financial statements.
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Notes to the Basic Financial Statements a
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June 30,2008
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The accounting policies of the County of Hawaii(the County)conform to U.S.generally accepted
accounting principles(GAAP)as applicable to local governmental units. The following notes to
the basic financial statements are an integral part of the County's Comprehensive Annual Financial
Report.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Financial Reporting Entity
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The County has implemented Governmental Accounting Standards Board Statement No. 14,
The Financial Reporting Entity(GASB Statement No. 14). All organizations,activities or
functions that meet the criteria in GASB Statement No. 14 for inclusion in the reporting entity
are included from the County's basic financial statements.
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Primary Government The County operates under the Mayor-Council form of government
under a charter that became effective on January 2, 1969,and was amended in 1979, 1982,
1990 and 2000. The County's operations are organized by the following functions: general
government;public safety;highways and streets;sanitation;health,education and welfare;
culture and recreation;pension and retirement contributions;health fund;miscellaneous;
capital outlay;and debt service. The State of Hawaii(the State)assumes full responsibility
for several major functions usually performed by local governments,including education, t
welfare,health and judicial functions. There are no separate city,county or township
governments nor any school districts,special districts,authorities or public corporations with
overlapping authority.
GASB Statement No. 14 defines component units as legally separate organizations for which
the elected officials of the primary government are financially accountable. "Financial
accountability"is the level of accountability that exists if a primary government appoints a
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voting majority of an organization's governing board and is either able to impose its will on
that organization or there is a potential for the organization to provide specific financial
benefits to,or impose specific financial burdens on,the primary government. A primary
government has the ability to impose its will on an organization if it can significantly
influence the programs,projects,activities or level of services performed or provided by the
organization. An organization has a financial benefit or burden relationship with the primary
government if any one of three conditions exist: (1)The primary government is legally
entitled to or can otherwise access the organization's resources;(2)The primary government
is legally obligated or has otherwise assumed the obligation to finance the deficits of,or
provide financial support to,the organization;or(3)The primary government is obligated in
some manner for the debt of the organization.
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As required by GAAP as set forth in GASB Statement No. 14,these basic financial
statements present the County of Hawaii(the primary government)and its component unit,
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
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June 30,2008
the Department of Water Supply. This component unit is included in the County's reporting
entity because of its financial relationship with the County.
Discretely Presented Component Unit The component unit column in the basic financial
statements includes the financial data of the Department of Water Supply(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 Commission,the governing body of the Department,are appointed by
the Mayor of the County and confirmed by the County Council. The Department is granted
corporate powers by state statute and the County Charter. Although the County does not have
the authority to approve or modify the Department's operational and capital budgets,the
County has issued bonds on the Department's behalf that are general obligations of the
County. Because the County is obligated to repay these bonds in the event of default by the
Department,the County is financially accountable for the debts of the Department. See Note
14 for component unit disclosures for the Department. Complete financial statements of the
Department can be obtained from the Department of Water Supply,345 Kekuanaoa Street, {
Suite 20,Hilo,Hawaii 96720.
Basic Financial Statements
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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 assets,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.
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.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
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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.
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The governmental funds in the fund financial statements are presented on a current financial
resource 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 on a different measurement focus and basis of
accounting than the government-wide statements' governmental 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 column of
the government-wide presentation.
The County's fiduciary funds are presented in the fund financial statements by type(private
purpose and agency). Since by definition these assets are being held for the benefit of a third
party(private parties,state government,etc.)and cannot by used to address activities or
obligations of the government,these funds are not incorporated into the government-wide j
statements.
Government-wide and fund financial statements—The government-wide financial
statements(i.e.,the statement of net assets and the statement of changes in net assets)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. 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.
Separate financial statements are provided for governmental funds,proprietary funds,and
fiduciary funds,even though the latter are excluded from the government-wide financial
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
statements. Major individual governmental funds and major individual enterprise funds are j
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,liabilities,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,liabilities,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.
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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.
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.
The County reports the following major proprietary funds:
Kulaimano 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. j
The County reports the following fiduciary funds:
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Notes to the Basic Financial Statements
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June 30,2008
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Private-Purpose Trust Funds—Used to account for funds received from geothermal
developers to mitigate the effects of geothermal energy development. Also used to i
account for investment income on funds received from import businesses at the port of
Hilo and the related expenditures to promote health and safety on the Island of Hawaii.
Agency Funds—Used to account for assets held by the County for other governmental
units and individuals. The agency funds are custodial in nature and do not involve
measurement of results of operations. The County has the following agency funds:
• State Weight Tax Fund
• Improvement District No. 17 Fund
• Improvement District No. 18 Fund
• Improvement District Revolving Fund
• Performance and Refundable Deposits Fund
• Payroll Clearance 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(within
60 days)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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
generally not measurable until actually received. State Revolving Fund loan proceeds are
considered available when collected.
In applying the susceptible to accrual concept to intergovernmental revenues,the legal and
contractual requirements of the numerous 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 unearned revenue in its fund financial statements(see Note 7). Unearned
revenues arise when potential revenue does not meet both the"measurable"and"available"
criteria for recognition in the current period. In subsequent periods,when both revenue
recognition criteria are met,the liability for unearned revenue is removed from the combined
balance sheet and revenue is recognized.
Expenditures are recognized under the modified accrual basis of accounting in the accounting
period in which the fund liability is incurred. Exceptions to this general rule include:
(a)accumulated compensated absences and claims and judgments which are recognized as
expenditures when paid;(b)liabilities related to municipal solid waste landfill closure and
postclosure care costs;and(c)principal and interest on general long-term debt which are i
recognized as expenditures when due.
In accordance with GASB Statement No.20,Accounting and Financial Reporting for j
Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting,
the County applies all applicable GASB pronouncements as well as the following
pronouncements issued on or before November 30, 1989,unless those pronouncements
conflict with or contradict GASB pronouncements;Financial Accounting Standards Board
statements and interpretations,Accounting Principles Board opinions,and Accounting
Research Bulletins of the Committee on Accounting Procedures.
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Encumbrances
The general,special revenue,and capital projects funds follow encumbrance accounting
under which purchase orders,contracts and other commitments are recorded as a reserve of
fund balance and provide authority for the carryover of appropriations to the subsequent year
in order to complete these transactions. Encumbrances outstanding at year-end are reported
as reservations of fund balances and do not constitute expenditures or liabilities because the
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commitments will be honored during the subsequent year.
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Notes to the Basic Financial Statements
June 30,2008
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Unexpended Allotments
Allotment accounting is employed in the general and capital projects funds to reserve
appropriations to complete capital projects that were funded during a given fiscal period.
Unexpended allotments represent reserves of capital projects appropriations that are available
to complete such projects in future fiscal periods.
Cash and Investments
Cash and cash equivalents include cash on hand,amounts in demand deposits and short-term
investments with a maturity date of three months or less from the date acquired by the
County.
Investments consist of time certificates of deposit at financial institutions and bank repurchase
agreements with original maturities exceeding three months. Included are participating
interest-earning investment contracts(repurchase agreements)that have remaining maturities
at the time of purchase of one year or less,as well as nonparticipating interest-earning
investment contracts(time certificates of deposit and repurchase agreements). Both
categories of investments are stated at amortized cost(see Note 3). Investments also consist i
of equity securities in the fiduciary fund financial statements. These investments are stated at j
fair value.
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Real Property Taxes
The County's real property taxes are on levied July 1 each year on assessed valuation as of
January 1. The taxes become a lien on the property assessed as of the levy date. Taxes are
due and payable in two equal annual installments on August 20 and February 20.
Accordingly,real property taxes receivable as of June 30 are delinquent. 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.
Inventories
Inventories consist of materials and supplies and are reported as expenditures at the time of
purchase(purchase method). Police and fire department inventories are stated using the first
in,first out(FIFO)method. Other inventories are stated at average cost.
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Liquor Control 1
Section 281 of the Hawaii Revised Statutes requires that liquor license revenues collected be
used only for costs and expenses directly relating to operational and administrative costs
actually incurred by the liquor commission collecting such fees. The unexpended fees at
June 30,2008 of$1,063,490 are reflected as a reserve of general fund balance.
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Notes to the Basic Financial Statements
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June 30,2008
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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 government 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 estimated fair market value
at the date of donation.
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.
Interest incurred during the construction phase of capital assets of business-type activities is
included as part of the capitalized value of the assets constructed.
Capital assets of the primary government are depreciated using the straight-line method over
the following estimated useful lives of the assets:
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Assets Years
Infrastructure 20 to 100 years
Buildings and improvements 50 to 100 years
Equipment 5 to 40 years
Depreciation is recorded in one enterprise fund,the Kulaimano Elderly Housing Project. It is
computed using the straight-line method over the following estimated useful lives of the
assets:
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Buildings 50 years
Furnishings and equipment 5 to 10 years
Ground and site improvements 20 to 50 years
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Long-term Obligations
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The County reports long-term debt of governmental funds at face value on the government-
wide statement of net assets. Certain other governmental fund obligations not expected to be
financed with current available resources are also reported on the government-wide statement
of net assets. Long-term debt and other obligations financed by the proprietary funds are j
reported as liabilities in those funds.
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Notes to the Basic Financial Statements
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June 30,2008
Compensated Absences
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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 j
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 assets along
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts. In prior years,the following funds have been used to
liquidate this liability for compensated absences: General Fund,Highway Fund,Sewer Fund,
Solid Waste Fund,Vehicle Disposal Fund,Golf Course Fund and the Housing Agency.
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 i
the Employees'Retirement System of the State of Hawaii. Accumulated sick leave at
June 30,2008 totaled$61,174,828 for the primary government. 1
Leases
Leases transferring substantially all of the risks and benefits of ownership are recorded as
capital leases;other leases are operating leases(see Note 8). Capital leases are recorded as
capital asset additions at their estimated fair market value at the inception of the lease and the
related present value of the future minimum lease obligations is recorded as long-term debt.
Operating lease expenditures and expenses are recognized when the lease obligation is paid.
Retirement Plan Contributions
The County's contribution to the Employees'Retirement System of the State of Hawaii
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includes the normal cost plus the level annual payment required to amortize the unfunded s
actuarial accrued liability.The County's policy is to fund its required contribution annually
(see Note 13). '
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COUNTY OF HAWAII {
Notes to the Basic Financial Statements
June 30,2008
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Operating Revenues and Expenses
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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.
Use of Estimates
The preparation of the basic financial statements in conformity with GAAP requires -
management to make estimates and assumptions that affect the reported amounts of assets and s
liabilities,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.
2. STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY
Annual Budget
The County follows these procedures in establishing its operating and capital budgets:
• On or before March 1,the Mayor submits to the County Council proposed operating and
capital projects budgets for the fiscal year commencing the following July 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
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Notes to the Basic Financial Statements
June 30,2008
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 2007-2008 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$10.1 million in the general fund and$7.6
million in the special revenue funds. Legally adopted budgets include the General Fund,
Highway Fund, Sewer Fund,Solid Waste Fund,Cemetery Fund,Parking Meter Fund,
Vehicle Disposal Fund,Bikeway Fund,Workforce Investment Act Fund,Golf Course
Fund,Geothermal Relocation Revolving Fund,Beautification Fund,Housing Agency
and Park Dedication 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.
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• The accompanying statement of revenues,expenditures and changes in fund balances—
budget and actual(budgetary basis)for the general fund presents a comparison of the
legally adopted budget with actual data on a budgetary basis. Accounting principles j
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.
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COUNTY OF HAWAII
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Notes to the Basic Financial Statements
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June 30,2008
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Budget to GAAP Reconciliation
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The following is a summary of the adjustments necessary to convert fund balances of the
County's general fund and solid waste fund from a GAAP basis to a budgetary basis at
June 30,2008:
s
Solid Waste
General Fund Fund
Ending fund balance—GAAP basis $48,870,351 $6,767,440
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 12,518,470 1,849,367
Ending encumbrances and unexpended allotments (14,465,089) (3,543,281)
Other adjustments -I2919. 220) --
Ending fund balance—Non-GAAP budgetary basis 44.004.412 5 073 526
3. 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. 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.
Cash
The County maintains approximately 18 bank accounts for various purposes at locations
throughout the state. Bank deposits are under the custody of the Director of Finance. For
financial statement reporting purposes,cash and short-term investments consist of cash,time
certificate of deposit,and money market accounts. Cash and short-term investments also
include repurchase agreements and U.S.government securities with original maturities of
three months or less.
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The carrying amount of the County's unrestricted and restricted deposits(cash,time
certificates of deposit,and money market accounts)as of June 30,2008 was$125,083,864
and$302,801,respectively,for the primary government and$5,536,101 and$637,000,
respectively,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$217,499,441 at June 30,2008. Of that amount,$217,298,205
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$201,236
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Notes to the Basic Financial Statements
June 30,2008
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 demand or
checking accounts and time certificates of deposit,the County requires,in accordance with
State statutes,that the depository banks pledge collateral based on the available bank balances
to limit its exposure to custodial credit risk. 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
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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 U.S.government securities(all rated AAA),while equity
securities are held by the fiduciary fund. -
The County's investments and maturities at June 30,2008 are as follows:
Maturity(in years)
Fair Value Less than 1 1 -5
Investments—Primary Government: I
Certificates of deposit $ 69,329,225 $ 69,329,225 $ --
U.S.government securities 63,635,164 63,635,164 --
$132.964.389 $132.964,389 $
Investments—Fiduciary Funds:
Certificates of deposit $ 2,285,235 $ 2,285,235 $ --
U.S.government securities $ 1,241,244 $ 1,241,244 $ --
3.526.479 3.526.479 $ --
Equity securities $ 972.446
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Interest Rate Risk: As a means of limiting its exposure to fair value losses arising from rising
interest rates,the County's investment policy generally limits maturities on investments to not
more than five years from the date of investment.
Credit Risk: The County's investment policy limits investments in state and U.S.Treasury
securities,time certificates of deposit,U.S.government or agency obligations,repurchase
agreements,commercial paper,bankers' acceptances,and money market funds,or other
securities maintaining a Triple-A rating.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
Custodial Risk: For an investment,custodial risk is the risk that,in the event of failure of the
counterparty,the County will not be able to recover the value of its investments or collateral
securities that are in the possession of an outside party. The County's investments are held by
its fiscal agent and the securities held by the fiduciary fund are held by the County. In
addition,the County requires the institutions to set aside in safekeeping,certain types of
securities to collateralize repurchase agreements.
Concentration of Credit Risk. The County's investment policy contains no limitations on the
amount that can be invested in any one issuer beyond that stipulated by the Hawaii Revised
Statutes.
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Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets amounted to
$939,801 at June 30,2008 and consist of the following:
Primary government $302,801
Fiduciary funds 637.000
939 801 .
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The County entered into a capital lease to purchase a new financial accounting computer
system. Upon execution of the lease documents,the leasing company deposited into an
escrow account in the County's name the full lease proceeds. As progress billings are
received for the new system,the County will authorize withdrawals from this escrow
account to pay the bills. The balance in this account at June 30,2008 was$70,642.
Tenant security deposits received by the County for the Kulaimano Elderly Housing
Project and the Ouli Ekahi Affordable Housing Project are recorded as restricted assets.
Such funds amounted to$11,856 and$21,162,respectively,at June 30,2008.
Restricted amounts set aside by the Kulaimano Elderly Housing Project under its loan
agreement with the Farmers Home Administration totaled$184,327 at June 30,2008.This
amount is restricted for debt service,or for other purposes with prior approval from the
Farmers Home Administration. An operating reserve fund was established by the Ouli
Ekahi Affordable Housing Project pursuant to an agreement with the developer of the
project. This restricted reserve amounted to$14,814 at June 30,2008.
The Improvement District No. 17 Fund has restricted$637,000 as a bond reserve at
June 30,2008 to comply with the requirements of its Kaloko Subdivision bond issuance.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
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4. RECEIVABLES
Receivables as of June 30,2008,for the County's individual major funds and nonmajor funds
in the aggregate,including the applicable allowances for uncollectible accounts,are as
follows:
Governmental activities:
Solid Capital Nonmajor
General Waste Projects Governmental
Fund Fund Fund Funds Total
Receivables:
Real property taxes $9,536,438 $ -- $ -- $ -- $ 9,536,438
Accounts receivable:
Sewer -- -- -- 1,823,392 1,823,392
Solid waste -- 3,791,366 -- -- 3,791,366
Capital projects -- -- 855,019 -- 855,019
Intergovernmental 8,076,217 741,299 6,271,541 1,382,538 16,471,595
Gross receivables 17,612,655 4,532,665 7,126,560 3,205,930 32,477,810
Less: allowance for
uncollectibles CLZ8Q 719) -- 79(4280) (2,074,999)
Net total receivables S 17.612.655 2 24S 7.126.560 $2 411 30.402.811
During fiscal year 2005,the County issued$3,887,493 in general obligation bonds on behalf
of Improvement District No. 18,an agency fund. At June 30,2008,the outstanding balance
of$3,719,135 is reflected in the government-wide statement of net assets as a receivable(see
Note 10).
Business-type activities:
Enterprise
Funds
Receivables:
Accounts receivable:
Rent $55,010
Other 2,448
Gross receivables 57,458
Less: allowance for
uncollectibles
Net total receivables 57 458
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
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5. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30,2008:
Receivable Fund Payable Fund Amount
General fund Solid waste fund $ 18,410
Other governmental funds 448,169
466,579
Capital projects fund General fund 227,268
Other governmental funds 284,191
511,459
Other governmental funds General fund 41,728
Other governmental funds 18,869
60,597
Total $1,038,635 {
Other governmental funds Enterprise funds �2
The above interfund balances result from the time lag between the dates that interfund goods i
and services are provided or reimbursable expenditures occur,transactions are recorded,and
payment between funds are made.
Transfers for the fiscal year ended June 30,2008 consisted of the following:
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Transfers out:
Nonmajor
General Governmental
Fund Funds Total
Transfers in:
Solid waste fund $ 17,352,726 $ -- $ 17,352,726
Capital projects fund 8,109,081 5,870,838 13,979,919
Nonmajor governmental funds 33,596,734 -- 33,596,734
59.058.541 $64,929,379
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 nonmajor governmental funds have made transfers to the
capital projects fund for the construction of various projects.
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Notes to the Basic Financial Statements
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June 30,2008
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30,2008 for the County was as follows:
Balance Balance
June 30, Retirements/ June 30,
2007 Additions Transfers 2008
Governmental activities:
Capital assets not being depreciated:
Land $ 22,999,168 $ 5,188,406 $ -- $ 28,187,574
Construction work in
progress 109.766,441 34.639.863 (19,364,453) 125,041,851
Total capital assets not
being depreciated 132.765,609 39,828.269 (19.364.453) 153,229,425
Capital assets being depreciated: t
Buildings and
improvements 268,415,009 30,839,538 -- 299,254,547
Equipment 84,513,840 15,441,236 (2,858,039) 97,097,037
Infrastructure 271,186,361 17.681.201 288,867,562
Total capital assets
being depreciated 624.115.210 63,961,975 (2,858,039) 685,219,146
Less accumulated depreciation for:
Buildings and
improvements (48,737,946) (3,498,380) -- (52,236,326) {
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Equipment (48,276,217) (5,923,793) 2,609,694 (51,590,316)
Infrastructure (113.944,886) (12.007,594) -- (125,952,480)
Total accumulated
depreciation (210,959.049) (21,429,767) 2.609,694 (229.779,122)
Total capital assets,
being depreciated,
net 413,156,161 42,532,208 (248,345) 455,440,024
Governmental
activities capital
assets,net 21 82.360.477 ($19.612.798) 608.669.449
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
Balance Balance ?
June 30, Retirements/ June 30,
2007 Additions Transfers 2008
Business-type activities:
Capital assets not being depreciated:
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Land $ 753,877 $ -- $ -- $ 753,877 a
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Capital assets being depreciated:
Buildings and
improvements 1,136,008 -- -- 1,136,008
Ground and site
improvements 261,000 -- -- 261,000
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Equipment 94,496 5,839 (4,294 96,041
Total capital assets j
being depreciated 1,491,504 5,839 (4,294) 1,493,049
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Less accumulated depreciation for: j
Buildings and
improvements (683,204) (24,615) -- (707,819) }
Ground and site
improvements (174,648) (3,754) -- (178,402)
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Equipment (81,266) (5,417) 4,294 (82,389)
Total accumulated
depreciation (939,118) (33,786) 4,294 (968,610) 1
Total capital assets,
being depreciated,
net 552,386 L27,947) -- 524,439
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Business-type
activities capital
assets,net ($27,947) -- 1 27 316
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Notes to the Basic Financial Statements
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June 30,2008
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government $ 1,617,260
Public safety 2,068,658
Highways and streets 13,229,748
Sanitation 3,174,713
Health,education and welfare 221,186
Culture and recreation 1,118,202
Total depreciation expense—governmental activities 21.429.767
Business-type activities:
Kulaimano Elderly Housing Project $33,786
Total depreciation expense—business-type activities 33 786
7. DEFERRED REVENUE
Deferred revenue consists of the following at June 30,2008
Solid Capital Other Total
General Waste Projects Governmental Governmental
Fund Fund Fund Funds Funds
Real property taxes $9,875,581 $ -- $ -- $ -- $ 9,875,581
Liquor control revenue 117,050 -- -- -- 117,050
Sewer revenue -- -- -- 1,029,112 1,029,112
Solid waste revenue -- 2,522,645 -- -- 2,522,645
Intergovernmental 2,328,674 -- 6,065,660 -- 8,394,334
Total presented in
fund financial
statements 12,321,305 2,522,645 6,065,660 1,029,112 21,938,722
Less adjustments for
accrual of revenues (9,536,437) (2,510,647) (1,029,112) X13,076,1961
Total government-
wide financial
statements $ 11,998 60 S -- 8.862.526
Enterprise j
Funds
Unearned rental income
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
8. LEASES
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The County leases machinery and equipment under noncancellable leases expiring at various
dates through April 2013 which meet the criteria for capitalization. These capital leases are
financed from general fund resources.
The estimated value of the leased machinery and equipment at the inception of the capital
leases and accumulated depreciation,amounting to$12,938,291 and$4,860,948,respectively,
and the related present value of the remaining obligations under the capital leases amounting
to$4,606,527 at June 30,2008 are included in capital assets and long-term debt,respectively.
The County also leases land,office facilities and other equipment under noncancellable
operating leases expiring through May 2022. Expenditures for such operating leases were
$2,164,542 for the fiscal year ended June 30,2008.
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The future minimum obligations under capital and operating leases at June 30,2008 are as
follows:
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Governmental
Activities-
Capital Operating
Leases Leases
Year Ending June 30:
2009 $1,536,906 $2,395,865 1
2010 1,335,064 2,023,717
2011 1,022,443 1,866,096
2012 860,754 1,036,573
2013 191,659 865,974
2014-2018 -- 859,069
2019-2022 -- 754
Total minimum lease payments 4,946,826 $9,048,048
Less amount representing
interest (340,299)
Obligations under capital leases 4 606 527 I
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste,the County recognizes a portion of the closure and postclosure care costs in each
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Notes to the Basic Financial Statements
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June 30,2008
operating period. The liability for these costs is included in the government-wide statement
of net assets. The amount recognized each year is based on the landfill capacity used as of
the balance sheet date. At June 30,2008,the County recognized a liability of$11,956,000,
based on the use of 88%of the estimated capacity of the landfill. During the fiscal year
ended June 30,2008,$69,696 was spent on closure of the landfill. The remaining$1,851,775
in estimated cost of closure and postclosure care will be recognized as the remaining
estimated capacity is used. The estimated remaining useful life of the landfill is
approximately four years. These amounts are based on what it would cost to perform the
required closure and postclosure care in 2008. Actual costs at that time may be higher due to
inflation,changes in technology,or changes in regulations.
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The percentage of estimated capacity used as of June 30,2008 reflects revised estimates
regarding the landfills total capacity from previous years. Historically, landfill capacity
estimates were based on volumes going into the landfill which did not account for
decomposition,settlement and corrosion.
The County's permit to operate the landfill expired October 9, 1998. The County filed for an
extension which was approved by the state until permitted capacity is reached. In accordance
with state statute,the County is allowed to continue operations provided that the County acts
consistently with the permit previously granted and the extension application,plans, j
specifications and all other information contained therein.
Kealakehe In October 1993,the County closed its Kealakehe landfill in Kona. Under state
and federal requirements,the County would have to monitor and maintain this site for ten
years from the closure date. However,the County anticipates monitoring and maintaining the
site for thirty years because there is presently a subterranean fire which requires active
management. The estimated cost of closure and postclosure is$15,250,000,based on what it
would cost to perform the required closure and postclosure care in 2008. Actual costs may be
higher due to inflation,changes in technology,or changes in regulations. Through
June 30,2008,$6,956,347 was spent on closure and postclosure care of the landfill. The
remaining estimated liability of$8,294,000 is included in the government-wide statement of
net assets. During the year ended June 30,2008,$92,375 was spent on closure of the landfill.
The County is providing financial assurance for postclosure care and remediation through self
insurance as explained below.
Pu'uanahulu In May 1993,the County contracted with a private company to construct and
operate a new landfill on County land at Pu'uanahulu in West Hawaii. The present contract
calls for County employees to perform the daily operations of the landfill,and for the private
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terms of the contract,the County has no responsibility for
remediation,closure or postclosure care. Accordingly,no liability for this landfill is included
in the County's financial statements.
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Notes to the Basic Financial Statements
June 30,2008
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Financial Assurance For fiscal year 2008,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.
10. LONG-TERM DEBT
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General Obligation Bonds
The County issues general obligation bonds to provide funds for the acquisition and
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construction of major capital facilities. These bonds have been issued by the County for the
primary government,component unit activities(see Note 14)and an improvement district.
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The following is a summary of general obligation bond transactions reported in the
government-wide statement of net assets for the County for the fiscal year ended June 30,
2008:
Bonds Issue Bond Balance Bond Balance Due within
Authorized Amount June 30,2007 Issues Retirements June 30 2008 no a year
1993 Ref&PI $86,770,000 $31,270,000 $ — ($ 4,530,000) $26,740,000 $ 4,790,000
1999 Series A 30,000,000 2,990,000 — (1,455,000) 1,535,000 1,535,000
2001 Series A 23,000,000 2,647,826 — (622,826) 2,025,000 645,652
2003 Series A 36,310,000 34,870,000 — (1,470,000) 33,400,000 1,505,000
2004 Series A 30,000,000 30,000,000 (1,130,000) 28,870,000 1,165,000
2004 Ref Series B 19,545,000 17,945,000 — (1,665,000) 16,280,000 1,735,000 j
2004 Ref Series C 5,050,140 4,146,188 — (465,812) 3,680,376 479,648
2004 PI Series A 2,776,400 2,742,083 - (35,947) 2,706,136 37,655
2004 PI Series B 920,000 907,754 - (12,782) 894,972 13,341
2004 PI Series C 191,093 155,100 - (37,073) 118,027 38,185 j
2006 Series A 25,000,000 25,000,000 - (757,500) 24,242,500 797,500
2007 Series A 85,000,000 85,000,000 - - 85,000,000 2,685,000
2007 Series B 20,820,000 20,820,000 20,820,000 —
2007 Series C 10.787,388 10.787,388 10,787388
376,170,021 269,281,339 (12,181,940) 257,099,399 15,426,981 t
Add unamortized
premium 5,420,154 4,859,956 (271,008) 4,588,948 271,008 a
Less deferred amount
on refunding (2828,759) (2,428,521) 248.722 (2379.799) (248,7L2)
378.761.416 271.712.774 $ — (112.204226) 259.508.548 1 44 2 I
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Notes to the Basic Financial Statements
June 30,2008
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General obligation bonds payable reported on the government-wide statement of net assets at
June 30,2008 are comprised of the following individual issues:
Public improvement and/or refunding bonds:
1993 Refunding&PI at 5.5%to 5.6%,due through 2013 $ 26,740,000
1999 Series A at 5.75%to 6.0%,due through 2009 1,535,000
2001 Series A at 4.0%to 4.5%,due through 2010 2,025,000
2003 Series A at 2.0%to 5.125%,due through 2023 33,400,000
2004 Series A at 3.0%to 5.25%,due through 2024 28,870,000
2004 Refunding Series B at 3.5%to 5.0%,due through 2015 16,280,000
2004 Refunding Series C at 2.5%to 3.7%,due through 2014 3,680,376
2004 PI Series A at 4.75%,due through 2039 2,706,136
2004 PI Series B at 4.375%,due through 2039 894,972
2004 PI Series C at 3.0%,due through 2010 118,027
2006 Series A at 4.0%to 5.0%,due through 2026 24,242,500
2007 Series A at 4.0%to 5.0%,due through 2027 85,000,000
2007 Series B at 3.75%to 5.0%,due through 2018 20,820,000
2007 Series C at 4.0%to 5.0%,due through 2021 10,787,388
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Total general obligation bonds payable $257.099.399
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
Governmental Activities
Fiscal year ending June 30: Principal Interest j
2009 $ 15,426,981 $ 11,765,031
2010 16,198,683 11,008,188
2011 16,950,530 10,264,615
2012 17,757;789 9,476,301
2013 18,591,566 8,630,305
2014-2018 65,714,435 32,185,141
2019-2023 60,310,418 17,423,539
2024—2028 44,173,666 4,710,526
2029-2033 695,157 382,110
2034—2038 872,865 200,261
2039—2040 407,309 19,168
Total 257.099.399 $106.065.185 '
Bond Premiums
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At June 30,2008,total unamortized bond premiums were$4,588,948,which is being
amortized over the remaining life of the respective bond issues.
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Notes to the Basic Financial Statements
June 30,2008
Bonds Authorized and Unissued
The County Council has authorized the issuance of$87 million in general obligation bonds to -
finance specified capital improvement projects. At June 30,2008,$47 million was not yet
issued.
Subsequent Events On July 3,2008,the County Council authorized the issuance of
$114,588,700 in general obligation bonds to finance specified capital improvement
projects. In addition,on October 27,2008,the County Council authorized the issuance
of$8,000,000 in general obligation bonds to finance the Kaloko Housing Project.
On December 10,2008,the County issued$50,000,000 in general obligation bonds
(2008 Series A). The interest rates on the 2008 Series A range from 4%to 6%and are
due through 2028. The bonds were authorized as noted above.
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 fifteen projects
approved for funding with these loans. The schedule below shows the County's SRF
transactions for the fiscal year ended June 30,2008:
Loans Approved Loan Balance Loan Balance Due within
Authorized Amount June 30,200 Additions Retirements June 30,2008 one year
Hilo WWTP $12,724,311 $4,549,874 $ ($ 712,283) $3,837,591 $ 730,090
Waiakea Mill 1,300,000 533,689 (70,711) 462,978 72,479
Waiakea
Houselots 459,321 164,911 - (25,817) 139,094 26,462
Waiakea
Houselots II 5,024,266 3,478,981 (250,506) 3,228,475 257,062
Ainako A&B 2,239,174 962,168 (119,882) 842,286 122,364
Kalanianaole 1,499,944 771,686 -- (81,080) 690,606 83,548
Kalanianaole RH 5,000,000 1,392,359 79,900 (65,043) 1,407,216 71,205
AM Drive A&B 3,210,243 1,363,885 -- (178,813) 1,185,072 183,818
Alii Drive C&D 3,780,000 1,835,297 — (199,835) 1,635,462 203,973
AM DriveE&F 2,112,654 1,176,371 -- (115,400) 1,060,971 118,912
Waiaha Bay 3,697,893 1,859,444 (196,753) 1,662,691 202,259
Kealakehe 1,300,071 532,717 -- (70,583) 462,134 72,347
HolualoaBay 3,080,000 1,744,740 (161,126) 1,583,614 166,029
Paukaa CCS 2,143,448 1,454,555 -- (105,978) 1,348,577 108,643
Cesspool
Conversion 8,908,035 6,254,922 1,836,140 (302,487) 7,788,575 405,355
Pahoehoe 2,817,760 2,171,152 - (130,308) 2,040,844 133,716
59.297.120 $30.246.751 1.916.040 ($2.786.6051 2 1
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Notes to the Basic Financial Statements
June 30,2008
The loans bear interest at 0.50%to 3.02%,exclusive of a 1.00%loan fee for all loans except
for the Hawaii County Cesspool Conversion Project which is subject to a 0.25%loan fee,and
require payments through fiscal year 2027. Debt service to maturity for disbursements to date
on these projects are as follows:
Governmental Activities
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Fiscal year ending June 30: Principal Interest
2009 $2,958,262 $ 879,670 !
2010 3,023,040 808,140 1
2011 3,092,648 731,637
2012 3,163,930 653,303
2013 3,237,315 568,059
2014-2018 8,612,614 1,214,815
2019-2023 3,610,954 217,697
2024—2027 1,677,423 28,026
Total 29.376.186 1 1
Other General Long-Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30,2008:
Balance Deductions Balance Due within
June 30,2007 Additions &Payments June 30,2008 one ye ar
Governmental activities:
Compensated absences $25,748,158 $13,109,420 ($10,887,517) $27,970,061 $7,375,050
Claims and judgments {
(see Note 12) 18,308,292 5,267,442 (4,087,323) 19,488,411 3,671,816
Capital leases
(see Note 8) 4,085,735 2,187,502 (1,666,710) 4,606,527 1,380,474
's
Landfill costs payable
(see Note 9) 21,241,000 - (991,000) 20.250,000 178,202
Total 69.383.185 $20,564,364 ($17.632.5501 72314.999 12.605.542
Fund Balances-Debt Service Funds
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The fund balance in the debt service funds at June 30,2008 includes$20,375,906,which is
available for principal payments on general obligation bonds and$1,783,140,which is
reserved for the payment of interest on the bonds.
Enterprise Fund Notes Payable
The Kulaimano Elderly Housing Project(Project)is indebted to the U.S.Department of
Agriculture,Farmers Home Administration on two notes payable with balances aggregating
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
4
June 30,2008
$970,892 at June 30,2008. The notes,which mature in September 2029,are repayable in
monthly installments of$7,826 including interest and are collateralized by substantially all of
the Project's property and equipment. Although the stated annual rate of interest on the notes
is 9%,such rate is reduced to 7%for as long as the Project has a U.S.Department of Housing
and Urban Development Section 8 Housing Assistance Payment contract in effect for all or
part of the units within the Project.
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The following is a summary of enterprise fund notes payable transactions for the fiscal year
ended June 30,2008:
Balance at June 30,2007 $995,854
Deductions (24,962)
Balance at June 30,2008 970,892
Less current portion 2( 6,798)
Note payable,net of
current portion 944 094
The following is a summary of the annual maturities for the enterprise fund notes payable:
Business-type Activities
Fiscal year ending June 30: Principal Interest
2009 $ 26,798 $ 67,114
2010 28,736 65,176
2011 30,813 63,099
2012 33,041 60,871
2013 35,429 58,483
2014-2018 219,472 250,088
2019-2023 311,129 158,431
2024—2027 285,474 36,443
Total $_759,705
Special Assessment Bonds
The County has outstanding special assessment bonds for one improvement district. In 1991,
the County issued$14 million of special assessment bonds for Improvement District No. 17,
Kaloko Subdivision,to finance a roadway and water system. In 2001,the County refunded
the remaining bonds outstanding of$6,370,000. The bonds mature annually through 2011
and bear interest at 7.375%.
Total special assessment bonds payable were$3,200,000 at June 30,2008. These are not
general obligation bonds and the County is not obligated in any manner for the repayment of
these bonds. The bonds are secured by a first lien on the land benefited by the improvements,
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
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June 30,2008
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and are to be repaid from the annual assessments levied against the owners of the land. The
County acts as an agent for the property owners within the improvement districts to collect
assessments receivable,forward payments to bond-paying agents at appropriate dates and,if
required,administer foreclosure proceedings. Accordingly,these bonds are not reflected on
the County's government-wide statement of net assets.
The following is a summary of special assessment bond transactions for Improvement District
No. 17,Kaloko Subdivision,for the fiscal year ended June 30,2008:
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Balance at June 30,2007 $3,870,000
Deductions (670,000)
Balance at June 30,2008 3 200 000
The following is a summary of the annual maturities for the special assessment bonds:
Year ending June 30: Principal Interest
2009 $ 715,000 $209,634
2010 770,000 154,875
2011 8253000 96,059
2012 890,000 32,820
Total 3 20 $4233$$ j
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The County has issued general obligation bonds on behalf of Improvement District No. 18 for
water improvements(see Note 4). 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 bonds mature annually through 2039 and bear interest at 3.0% 1
to 4.75%. Total general obligation bonds payable included in the government-wide statement
of net assets were$3,719,135 at June 30,2008.
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,for the fiscal year ended June 30,2008: x
Balance at June 30,2007 $3,804,937
Additions --
Deductions (85,802
Balance at June 30,2008 3.719.135
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
The following is a summary of the annual maturities for the improvement district general s
obligation bonds:
Year ending June 30: Principal Interest
2009 $ 89,181 $ 169,479
2010 92,699 165,889
2011 96,362 162,149
2012 58,449 158,883
2013 61,168 156,101
2014-2018 351,280 734,006
2019-2023 440,999 642,195
2024—2028 553,666 526,902
2029-2033 695,157 382,110
2034—2038 872,865 200,261
2039—2040 407,309 19,169
Total 3,.719.13 5 $3,317,144
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments— Contractual commitments for capital projects,expenses,and
supplies at June 30,2008,except in the enterprise funds,are reflected in the balance sheets as
fund balance reserved for encumbrances. Contractual commitments for the enterprise funds
were immaterial.
Intergovernmental revenues— The County has received federal and state grants for specific
purposes that are subject to review and audit by grantor agencies. Such audits could lead to
requests for reimbursement to the grantor agency for expenditures disallowed under terms of
the grants. In the opinion of management of the County,disallowed costs,if any,would not
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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 assets(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 affect on the financial
condition of the County.
ADA compliance—The County has entered into two stipulated agreements(or Consent
Decrees)approved by the federal district court judges to implement provisions of the
Americans with Disabilities Act("ADA"). With respect to the first stipulated agreement
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
relating to curb cuts,the County,with the help of a consultant,surveyed 669 intersections,
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then ranked them in order of priority. A transition plan,along with a funding commitment,
was approved by the County Council. The total cost of all curb cuts was estimated to be$6.2
million. The cost of the first phase of the plan was$3 million,to be used in high priority
areas such as government facilities,schools,and hospitals. The remaining cost will cover
curb cuts at parks and in low-density single family residential areas. All corrective action
was to be completed by July 2005,with an estimated 682 ramps to be completed. Funding
allocated so far for this effort is$10.6 million. Since the proposed timetable proved to be too
ambitious,the parties amended the agreement to require contracting by July 2005,rather than
completion by that date. Pursuant to the April 2005 Stipulation of the Parties and Order of
the Court,all curb ramps for 2005 and most curb ramps for 2004 were deferred. In the first
phase,construction of curb ramps commenced in 2000 and ended in 2004,whereby 229 curb
ramps were completed. In the second phase, 153 proposed curb ramps were deferred and 161
curb ramps were to be constructed. As of May 21,2008,there were approximately 204 curb
ramps(which included at least 151 of the 161 curb ramps that were required by the amended
transition plan)installed in Hilo,Waikoloa and Kona at a total cost of close to$4.8 million.
We will be seeking closure of this matter with the federal district court. In addition,the '
Department of Public Works has developed and advertised Procedures for Requesting New
Curb Ramps or Modifications to Existing Curb Ramps within the County Streets.
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The second stipulated agreement relates to the Department of Parks and Recreation(the Parks
Department). The agreement required the Parks Department to establish practices,policies
and procedures regarding its programs,and prepare a transition plan by the middle of the year
2000. The self-evaluation and transition plan for programs,practices and procedures has !
been completed and approved by the County Council. The cost impact of implementation is
not material because the necessary modifications are primarily procedural. This is an
ongoing effort. The second part of this stipulated agreement is the reevaluation of all County
facilities,which was completed and accepted by the County Council on June 30,2000.
Approximately 240 County facilities were surveyed as part of this effort. The tentative I
completion date of all necessary repairs and renovations is 12 years from the date the County
Council accepted the self-evaluation. The original estimated cost of the facilities repairs was
$14.8 million,which would have been spent over the 12-year period. Funding allocated
initially for facilities repairs was$17.5 million,with another$4 million of federal funding
anticipated through community development block grants over the next 2 years. Since 2000,
the Department of Parks and Recreation has requested$2 to$3 million a year for the different
park facilities'ADA projects,and recently,the Department of Public Works has requested an
additional$2 million a year for the other County ADA facilities' project. Because of the
substantial hardships predominantly incurred in the funding and cost aspects of the
implementation of the Original Transition Plan,the learning curve process,and the timing
and scheduling of the different stages of work for each project,the parties are currently
working on a plan to ensure implementation of a Transition Plan with the assistance of a
federal district court Monitor and an ADA Specialist,to obtain extensions on the initial
deadlines for completion that were set in the Original Transition Plan and to establish a
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
Revised Transition Plan to satisfy the requirements of the ADA. In addition,the County's
ADA coordinator(Equal Opportunity Officer)has access to an identifiable account of at least
$50,000 to handle requests for reasonable accommodations for County departments;and once j
the procedures for these requests are finalized,they will be publicized in the newspaper and
other media formats(including internet access).
12. RISK MANAGEMENT
The County is exposed to various risks of losses related to torts;theft of,damage to,and
destruction of assets;errors and omissions;injuries to employees;and natural disasters. The j
County maintains fire and commercial multiple peril insurance on County facilities,flood
insurance on selected structures,medical malpractice insurance for emergency medical
technicians,general liability insurance for water safety officers,aviation liability for
helicopter operations,automobile coverage on transit buses and County Police fleet vehicles,
and no-fault insurance coverage for privately owned police vehicles. There was no reduction
in insurance coverage during the year from coverage in the prior year. During the past three -
fiscal years,the amount of settlements in cases covered by insurance has not exceeded the
insurance coverage. The County is substantially self-insured for its vehicles as well as for all
other perils including workers'compensation and general liability.
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 assets. At June 30,2008,the amount of
this liability was$19,488,411. This is the County's best estimate based on available '
information. Changes in the reported liability since June 30,2006 are given below.
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General Workers' Total
Liabili Compensation Liabilily
Balance at June 30,2006 $7,693,376 $13,647,017 $21,340,393
Incurred claims(including IBNR)* 403,514 1,092,369 1,495,883 j
Claim payments (2,093,882) (2,434,102) (4,527,984)
Balance at June 30,2007 $6,003,008 $12,305,284 $18,308,292
Incurred claims(including IBNR)* 3,736,161 1,531,281 5,267,442
Claim payments (1,481,697) (2,605,626) (4,087,323)
Balance at June 30,2008 $8,257,472 $11,230,939 $19,488,411
*Net of new claims liability and old claims resolved at less than previous estimate.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
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June 30,2008
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13. EMPLOYEE BENEFIT PLANS
Pension Plan
Plan description All eligible employees of the County are required by Chapter 88 of the
Hawaii Revised Statutes(HRS)to become members of the Employees'Retirement System of
the State of Hawaii(the ERS),a cost-sharing multiple-employer defined benefit pension
plan. The ERS provides retirement,survivor,and disability benefits with multiple benefit
structures known as the contributory,hybrid,and noncontributory plans. All contributions,
benefits,and eligibility requirements are established by Chapter 88,HRS,and can be
amended by legislative action.
The ERS regards the County,including its component unit,as one employer. Therefore,
separate information for the primary government and its component unit is not available. All
information given below on the pension plan is for the reporting entity as a whole,including
both the primary government and its component unit.
Employees covered by Social Security on June 30, 1984 were given the option of joining the
noncontributory plan or remaining in the contributory plan. All new employees hired after
June 30, 1984 and before July 1,2006,who are covered by Social Security,were generally
required to join the noncontributory plan. Qualified employees in the contributory and
noncontributory plan were given the option of joining the hybrid plan effective July 1,2006,
or remaining in their existing plan. Starting July 1,2006,all new employees covered by
Social Security are required to join the hybrid plan. '
The three plans provide a monthly retirement allowance equal to the benefit multiplier
percentage(1.25%or 2.00%)multiplied by the average final compensation(AFC)multiplied
by years of credited service. 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,if the employee became
a member prior to January 1, 1971. The AFC for members hired on or after this date is based
on the three highest paid years of service,excluding the payment of salary in lieu of vacation.
For postretirement increases,every retiree's original retirement allowance is increased by i
2.5%on 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.).
The following summarizes the three plan provisions relevant to the general employees of the
respective plan:
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Notes to the Basic Financial Statements
June 30,2008
Contributory Plan General employees in the contributory plan are required to contribute
7.8%of their salary and are fully vested for benefits upon receiving 5 years of credited
service. The County may also make contributions for these members. Under the _
contributory plan,employees may retire with full benefits at age 55 and 5 years of
credited service,or may retire early at any age with at least 25 years of credited service
and reduced benefits. The benefit multiplier is 2.0%for employees covered by Social
Security.
Police officers,fire fighters and certain other members that are not covered by Social
Security contribute 12.2%of their salary and receive a retirement benefit using the j
benefit multiplier of 2-1/2%for qualified service,up to a maximum of 80%of AFC. $
These members may retire at age 55 with 10 years of credited service or at any age with
25 years of credited service,provided the last 5 years of credited service is in any of the
qualified occupations.
Hybrid Plan General employees in the hybrid plan are required to contribute 6.0%of
their salary and are fully vested for benefits upon receiving 5 years of credited service.
The County may also make contributions for these members. Employees may retire with
full benefits at age 62 and 5 years of credited service or at age 55 and 30 years of
credited service,or may retire at age 55 and 20 years of credited service with reduced
benefits. The benefit multiplier used to calculate retirement benefits is 2.0%.
{
Noncontributory Plan General employees in the noncontributory plan are fully vested
upon receiving 10 years of credited service. The County is required to make all
contributions for these members. Employees may retire with full benefits at age 62 and
10 years of credited service or age 55 and 30 years of credited service or age 55 and 20
years of credited service with reduced benefits. The benefit multiplier used to calculate
retirement benefits is 1.25%.
The ERS funding policy provides for periodic employer contributions at actuarially
determined rates,expressed as a percentage of annual covered payroll,such that the employer
contributions,along with employee contributions and an actuarially determined rate of
investment return,are adequate to accumulate sufficient assets to pay benefits when due. The
funding method used to calculate the total employer contribution required is the entry age
normal actuarial cost method. Effective July 1,2005,employer contribution rates are a fixed
percentage of compensation,including the normal cost plus amounts required to pay for the
unfunded actuarial accrued liability. Employers contribute 15.75%for police officers and fire
fighters,and 13.75%for all other employees. These rates increase,as of July 1,2008,to i
19.70%for police officers and fire fighters,and 15.00%for all other employees. Employer
rates are set by statute based on the recommendation of the ERS actuary resulting from an
experience study conducted every five years.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
The required pension contributions by the County for the years ended June 30,2008,2007,
and 2006 were$18,222,311,$16,337,218 and$15,452,562,respectively,which equal the
required contributions for each year. Measurement of assets and actuarial valuations are
made for the ERS as a whole and are not separately computed for individual participating
employers such as the County.
The ERS issues a Comprehensive Annual Financial Report(CAFR)that includes financial
statements and required supplementary information,which may be obtained by writing to the
Employees'Retirement System of the State of Hawaii,201 Merchant Street,Suite 1400,
Honolulu,Hawaii 96813.
Post-Retirement Benefits
In addition to providing pension benefits,the County is required by state statute(HRS
Chapter 87A)to contribute to the Hawaii Employer-Union Health Benefits Trust Fund(the
EUTF). The EUTF is an agent,multiple-employer defined benefit plan providing certain
healthcare and life insurance benefits to all qualified retirees,active employees,their
dependents and their beneficiaries.The EUTF was established on July 1,2003 to design,
provide,and administer medical,prescription drug,dental,vision,chiropractic,dual-coverage
medical and prescription drug,and group life benefits.
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.
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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.
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For employees hired after June 30,2001,and who retire with fewer than 10 years of service,
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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. s
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Notes to the Basic Financial Statements
June 30,2008
For active employees,the employee's contributions are based upon negotiated collective
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bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
The County's annual other postemployment benefit(OPEB)cost is calculated based on the
annual required contribution(ARC)of the employer,which is an amount actuarially
determined in accordance with the parameters of Governmental Accounting Standards Board
Statement No.45,Accounting and Financial Reporting by Employers for Postemployment
Benefits Other than Pensions(GASB Statement No.45). GASB Statement No.45 addresses
the failure of previous financial reporting practices to measure and recognize the cost of
OPEB during the periods when employees render the services or to provide relevant
information about OPEB obligations and the extent to which progress is being made in
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funding those obligations. The ARC represents a level of funding that,if paid on an ongoing
basis,is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities(or funding excess)over a period not to exceed thirty(30)years. The current ARC
rate is 18.4%of annual covered payroll. -
The following section shows the County's Annual OPEB cost for the year ended June 30,
2008,the amount actually contributed to the plan,and changes in the net OPEB obligation:
Annual required contribution $23,426,000
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB Cost 23,426,000
Contributions made (23,504,313)
Net OPEB obligation(asset) (78,313)
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The annual OPEB cost,the percentage of annual OPEB cost contributed to the plan,and the
net OPEB obligation for the year ended June 30,2008 were as follows:
Percentage of Annual Net OPEB
Fiscal Year OPEB Cost Obligation
Ended Annual OPEB Cost Contributed (Asset)
6/30/08 $23,426,000 100% ($78,313)
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COUNTY OF HAWAII
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Notes to the Basic Financial Statements
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June 30,2008
The schedule of funding progress based on the actuarial valuation date of July 1,2007,is as
follows:
Actuarial accrued liability $275,828,000
Actuarial value of plan assets -
Unfunded actuarial accrued liability(UAAL) $275,828,000
Funded Ratio
Covered payroll(active plan members) $127,420,000
UAAL as a percentage of covered payroll 216% ±
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment,mortality,and the healthcare cost trend. {
Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared s
with past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan(the
plan as understood by the employer and plan members)and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing of benefit costs
between the employer and plan members to that point. The actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets,consistent with the long-term
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perspective of the calculations.
In the July 1,2007 actuarial valuation,the entry cost actuarial cost method was used. The
actuarial assumptions included an 8.0%discount rate,which is based on the County's
anticipated funding level,and an annual healthcare cost trend rate of 9.5%initially,reduced
by decrements to an ultimate rate of 5.0%after six years. The assumptions also include a
3.5%increase in payroll. The UAAL is being amortized as a level percentage of projected
payroll on an open basis. The remaining amortization period at July 1,2007 was 30 years.
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.
Deferred Compensation Plan
County employees are permitted to participate in a deferred compensation plan of the State of
Hawaii,adopted pursuant to Internal Revenue Code(IRC)section 457. The plan permits
eligible employees to defer a portion of their salary until future years by contributing to a
fund managed by a plan administrator. The deferred compensation amounts are not available
to employees until termination,retirement,death,or unforeseeable emergency.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
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June 30,2008
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All plan assets are held in a trust fund to protect them from claims of general creditors and
from diversion to any uses other than paying benefits to participants and beneficiaries. The
County has no responsibility for loss due to the investment or failure of investment of funds
and assets in the plans,but does have the duty of due care that would be required of an
ordinary prudent investor. Therefore,in accordance with GASB Statement No.32,
Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Plans,deferred compensation plan assets are not reported in the accompanying
basic financial statements.
14. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30,2008,cash,time certificates of deposit,money market funds,and repurchase
agreements of$65,821,953,with bank balances of$66,713,626 were held by the County on
behalf of the Department. These balances were fully insured or collateralized with securities
held by the County's agent in the County's name.
The deposits and investments include investments received by the Department that are
refundable or restricted as to use,and is recorded as a restricted asset. Such funds amounted
to$19,739,823 at June 30,2008.
At June 30,2008,the Department's investment portfolio consists primarily of repurchase
agreements,certificates of deposit,and a discounted note held by the County on behalf of the
Department.
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. Construction period interest is capitalized on utility plan constructed
with tax-exempt debt.
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COUNTY OF HAWAII
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Notes to the Basic Financial Statements
June 30,2008
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:
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Structures and improvements 40 to 50 years
Machinery and equipment 5 to 20 years
Water systems 10 to 40 years '
The capital assets of the Department at June 30,2008 were as follows: j
Utility plant in service $298,638,467
Less: accumulated depreciation (148,973,775)
149,664,692
Land and rights 1,116,933
Construction in progress 54,199,264
Net capital assets $204,980,889
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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$35,823,543
at June 30,2008.
General obligation bonds payable issued on behalf of the Department and other long-term j
debt at June 30,2008 are comprised of the following: 1
Public improvement bonds:
1993 Series A at 5.05%to 5.6%,due through 2013 $3,755,000
1998 Series A at 4.5%,due through 2033 381,495
2001 Series A at 4.0%to 5.5%,due through 2010 1,080,000
2004 Series D at 4.5%,due through 2039 252,312
2006 Series A at 4.0%to 5.0%,due through 2026 24,242,500
2008 Series A at 4.125%,due through 2043 50,000
Total public improvement bonds 29,761,307
Public improvement refunding bonds: {
2004 Series at 5.0%,due through 2015 309,624
2007 Series at 4.0%to 5.0%,due through 2021 5,752,612
Total public improvement refunding bonds 6,062,236
State revolving fund loan,interest at 0.41%to 1.37%,
due through 2027 5,423,551
Total &4 1.247.094
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2008
At June 30,2008,future principal payments for long-term debt are scheduled as follows:
Fiscal year ending June 30:
2009 $ 2,236,000
2010 2,337,000
2011 2,446,000
2012 2,586,000 {
2013 2,701,000
2014-2018 10,332,000
2019-2023 11,164,000
2024—2028 7,225,000
2029—2033 131,000
2034—2038 60,000
2039—2043 29.094
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Total $41,247,094
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Contributions in Aid of Construction
Effective July 1,2000,the Department adopted GASB Statement No.33,Accounting and
Financial Reporting for Nonexchange Transactions,which requires the Department to j
recognize contributions in aid of construction as nonoperating revenues. Contributions in aid
of construction were previously recognized as contributed capital. The Department
recognized$5,673,845 of contributions in aid of construction as nonoperating revenues for
the fiscal year ended June 30,2008.
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Commitments and Contingent Liabilities
Claims and judgments—The Department is self-insured for workers' compensation and
other perils. The liability at June 30,2008 for workers' compensation claims of$116,000
was estimated based on a combination of case-by-case review and the application of historical
experience to outstanding claims.
Construction contracts—The Department is obligated under construction contracts for the
utility plant and other projects. Such commitments approximated$24,071,000 at
June 30,2008.
Post-Retirement Benefits
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Effective July 1,2007,the Department of Water Supply adopted the provisions of GASB
Statement No.45. This statement addresses how state and local governments should account
for and report their costs and obligations related to postemployment benefits,healthcare,and
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COUNTY OF HAWAII
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Notes to the Basic Financial Statements
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June 30,2008
other nonpension benefits.The Department's annual required contribution for its
postemployment benefit obligation for the year ended June 30,2008 was$1,493,000.The
Department made contributions of$544,923 during the year ended June 30,2008 and
recorded a postemployment benefit liability of$948,077 at June 30,2008,which was paid in
July 2008.
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NONMAJOR GOVERNMENTAL FUNDS
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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 sewerage systems. Financing
is provided by charges to users for sewer services.
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 INVESTMENT ACT FUND-Used to account for employment and training services
provided to economically disadvantaged adults,dislocated workers and youth. Financing is provided by
federal grants.
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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.
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GEOTHERMAL RELOCATION REVOLVING FUND-Used to account for the County's share of
geothermal resource royalties received from the operator of a geothermal power plant located in the County.
The funds are earmarked for a geothermal relocation program.
BEAUTIFICATION FUND-Used to accumulate moneys for the beautification of highways and disposal of
abandoned vehicles within the County. Financing is provided by assessments on vehicle registrations.
HAWAII COUNTY HOUSING AGENCY-Used to account for Federal and County moneys used to provide
public housing assistance within the County.
PARK DEDICATION FUND-Used to account for moneys deposited with the County by subdividers to
provide land for parks and playgrounds in subdivisions.
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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COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2008
Special Revenue Funds
Parking Vehicle
Highway Sewer Cemetery Meter Disposal
Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents $ 9,137,665 $ 8,614,498 $60,659 $127,199 $3,618,378
Investments - - - - -
Imprest fund - 200 - - -
Receivables:
Due from other governments 46,652 1,285 - - -
Due from other governmental funds - 14,690 - - -
Due from other nongovernmental funds - 2,700 - - -
Trade,net of allowance for doubtful accounts - 1,029,112 - - -
Other 659,628 - - - -
706,280 1,047,787 - - -
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Total assets $ 9,843,945 $ 9,662,485 $60,659 $127,199 $3,618,378
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Liabilities and Fund Balances
Liabilities:
Accounts payable $ 256,985 $ 568,338 $ - $ - $ 41,829
Due to other governmental funds 325,659 1,841 - - -
Unearned revenue - 1,029,112 - - -
Accrued liabilities 124 26,144 - - -
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Total liabilities 582,768 1,625,435 - - 41,829
Fund balances:
Reserved for:
Encumbrances 4,069,640 1,637,896 - - 264,469
Debt service - - - - - d
Unreserved: 5,191,537 6,399,154 60,659 127,199 3,312,080
Total fund balances 9,261,177 8,037,050 60,659 127,199 3,576,549
Total liabilities and fund balances $ 9,843,945 $ 9,662,485 $60,659 $127,199 $3,618,378
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Special Revenue Funds '
Workforce Golf Geothermal Reloo. Beauti- Park
Bikeway Investment Course &Community fication Housing Dedication
Fund Act Fund Fund Benefits Fund Fund Agency Fund
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$438,947 $ - $ 71,531 $ 3,254,974 $ 880,623 $ 1,357,634 $ -
3,215,134 84,056
- - 2,000 - - 200 -
1,272,837 - - - 61,764 -
- - - 45,907 -
- 38,995 3,746 282,775 - 83,123 -
1,311,832 3,746 282,775 - 190,794
$438,947 $ 1,311,832 $ 77,277 $ 3,537,749 $ 880,623 $ 4,763,762 $ 84,056
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$ - $ - $ 416 $ - $ - $ 21,106 $ -
419,126 4,603 - - - -
- - - - 181,604 - {
419,126 5,019 - - 202,710 -
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3,307 892,706 37,455 30,893 3,264,432 -
435,640 - 34,803 3,537,749 849,730 1,296,620 84,056
438,947 892,706 72,258 3,537,749 880,623 4,561,052 84,056
$438,947 $ 1,311,832 $ 77,277 $ 3,537,749 $ 880,623 $ 4,763,762 $ 84,056 j
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(Continued)
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COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2008
(Concluded)
Debt Service Funds Total
Bond Nonmajor
Interest Redemption Governmental
Fund Fund Funds
Assets
Cash and cash equivalents $1,855,661 $20,615,906 $ 50,033,675
Investments - - 3,299,190
Imprest fund - - 2,400
Receivables:
Due from other governments - - 1,382,538
Due from other governmental funds - - 60,597 it
Due from other nongovernmental funds - - 2,700
Trade,net of allowance for doubtful accounts - - 1,029,112
Other - - 1,068,267
- 3,543,214
Total assets $1,855,661 $20,615,906 $ 56,878,479
Liabilities and Fund Balances
Liabilities: j
Accounts payable $ - $ - $ 888,674
Due to other governmental funds - - 751,229
Deferred revenue - - 1,029,112
Accrued liabilities 72,521 240,000 520,393
Total liabilities 72,521 240,000 3,189,408
Fund balances:
Reserved for:
Encumbrances - - 10,200,798
Debt service 1,783,140 20,375,906 22,159,046
Unreserved: - - 21,329,227
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Total fund balances 1,783,140 20,375,906 53,689,071
Total liabilities and fund balances $1,855,661 $20,615,906 $ 56,878,479
See accompanying independent auditors'report.
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COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2008
Special Revenue Funds
Parking Vehicle
Highway Sewer Cemetery Meter Disposal
Fund Fund Fund Fund Fund
Revenues
Fuel tax $ 7,887,998 $
Public utility franchise tax 9,026,841 - - - -
Licenses and permits 6,970,181 - - - 2,061,984
Intergovernmental 522,500 1,170 - - -
Charges for services - 6,335,318 - 14,482 248
Investment earnings - - - - -
Miscellaneous 623,388 6,160 10,250 - 890
Total revenues 25,030,908 6,342,648 10,250 14,482 2,063,122
Expenditures
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Current:
Public safety 5,114,080 - - - -
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Highways and streets 13,259,580 - - - -
Sanitation - 5,985,778 - - 1,027,639
Health,education and welfare - - - - -
Culture and recreation - - - - -
Pension and retirement contributions 1,695,143 399,213 - - 27,228
Employees'health insurance 636,276 157,441 - - 16,784 j
Miscellaneous 397,645 558,418 - - -
Debt service:
Principal - - - - -
Interest - - - - -
Total expenditures 21,102,724 7,100,850 - - 1,071,651
Excess(deficiency)of revenues
over expenditures 3,928,184 758,202 10,250 14,482 991,471
Other Financing Sources(Uses)
Transfers in 545,000 20,000 - - - '
Increase in capital leases - - - - -
Transfers out (5,870,838) - - - -
Total other financing sources(uses) (5,325,838) 20,000 - - -
Net change in fund balances (1,397,654) (738,202) 10,250 14,482 991,471
Fund balances at beginning of year 10,658,831 8,775,252 50,409 112,717 2,585,078
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Fund balances at end of year $ 9,261,177 $ 8,037,050 $ 60,659 $127,199 $3,576,549
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Special Revenue Funds
Workforce Golf Geothermal Retoe. Beauti- Park
Bikeway Investment Course &Community fication Housing Dedication
Fund Act Fund Fund Benefits Fund Fund Agency Fund
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52,853 - - - 171,833 - -
3,198,908 - - - 13,162,194 -
- - 743,194 - - - -
- _ - 267,262 3,098
- 949,138 - 150,086 -
52,853 3,198,908 743,194 949,138 171,833 13,579,542 3,098
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823 - - - 94,966 - -
2,306,202 - - - 15,427,696 -
- 893,215 - - - -
- 142,496 - - 462,442 -
- 63,733 - - 135,455 -
- 5,882 - - - -
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- - - - 1,712 -
- - - - 256 -
823 2,306,202 1,105,326 - 94,966 16,027,561 -
52,030 892,706 (362,132 949,138 76,867 2,448,019) 3,098
415,792 - - 1,397,612 -
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- 415,792 - - 1,397,612 -
52,030 892,706 53,660 949,138 76,867 (1,050,407) 3,098
386,917 - 18,598 2,588,611 803,756 5,611,459 80,958
$ 438,947 $ 892,706 $ 72,258 $ 3,537,749 $ 880,623 $4,561,052 $ 84,056 j
(Continued)
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COUNTY OF HAWAII
Nonmajor Governmental Funds
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Combining Statement of Revenues,Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2008
(Concluded)
Debt Service Funds Total
Bond Nonmajor
Interest Redemption Governmental
Fund Fund Funds
Revenues
Fuel tax $ - $ - $ 7,887,998
Public utility franchise tax - - 9,026,841
Licenses and permits - - 9,256,851
Intergovernmental - - 16,884,772
Charges for services - - 7,093,242
Investment earnings - - 270,360
Miscellaneous - - 1,739,912
Total revenues - - 52,159,976
Expenditures
Current:
Public safety - - 5,114 080
Highways and streets - - 13,355,369
Sanitation - - 7,013,417
Health,education and welfare - - 17,733,898
Culture and recreation - - 893,215
Pension and retirement contributions - - 2,726,522
Employees'health insurance - - 1,009,689
Miscellaneous - - 961,945
Debt service:
Principal - 14,892,743 14,894,455
Interest 12,927,693 - 12,927,949
Total expenditures 12,927,693 14,892,743 76,630,539
Excess(deficiency)of revenues
over expenditures 12,927,693) (14,892,743) (24,470,563)
Other Financing Sources(Uses)
Transfers in 12,940,306 18,278,024 33,596,734
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Increase in capital leases - - -
Transfers out - - (5,870,838)
Total other financing sources(uses) 12,940,306 18,278,024 27,725,896
Net change in fund balances 12,613 3,385,281 3,255,333
Fund balances at beginning of year 1,770,527 16,990,625 50,433,738
Fund balances at end of year $ 1,783,140 $20,375,906 $53,689,071
See accompanying independent auditors'report.
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Highway Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance i
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
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Revenues:
Taxes:
Fuel tax $ 8,185,000 $8,185,000 $ 7,887,998 $ (297,002)
Public utility franchise tax 8,595,000 8,595,000 9,026,841 431,841
Total taxes 16,780,000 16,780,000 16,914,839 134,839
Licenses and permits-motor vehicle weight taxes 6,768,904 6,768,904 6,970,181 201,277
Intergovernmental 320,774 320,774 522,500 201,726
Charges for current services 200,000 200,000 372,767 172,767
Miscellaneous 120,837 120,837 250,621 129,784
Total revenues 24,190,515 24,190,515 25,030,908 840,393 _
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Expenditures:
Public safety-traffic engineering 6,529,867 6,553,867 5,840,778 713,089
Highways and streets 10,753,089 11,800,685 11,181,743 618,942
Highways and streets-mass transit 1,122,907 1,912,544 1,087,844 824,700
Pension and retirement contributions 1,645,896 1,725,896 1,695,143 30,753
Health fund 817,596 817,596 636,276 181,320
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Miscellaneous 1,519,265 1,939,265 847,154 1,092,111 I
Total expenditures 22,388,620 24,749,853 21,288,938 3,460,915
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Excess(deficiency)of revenues over expenditures 1,801,895 (559,338) 3,741,970 4,301,308
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Other financing uses-transfers in(out)-
General Fund 210,000 335,000 545,000 210,000
Capital Projects Fund (5,428,000) (5,998,000) (5,870,838) 127,162
Total other financing uses (5,218,000) (5,663,000) (5,325,838) 337,162
Deficiency of revenues over expenditures
and other uses (3,416,105) (6,222,338) (1,583,868) 4,638,470
Fund balance at beginning of year 10,658,831 10,658,831 10,658,831 -
Fund balance at end of year $ 7,242,726 $4,436,493 $ 9,074,963 $ 4,638,470
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Sewer Fund j
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Charges for current services-sewer fees $ 6,588,560 $ 6,588,560 $ 6,335,318 $ (253,242)
Intergovernmental - 1,170 1,170
Miscellaneous 200 200 6,160 5,960
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Total revenues 6,588,760 6,588,760 6,342,648 (246,112)
Expenditures:
Sanitation 6,625,257 6,645,257 5,920,086 725,171
Pension and retirement contributions 507,073 507,073 399,213 107,860
Health fund 239,198 239,198 157,441 81,757
Miscellaneous 2,674,912 2,674,912 1,199,877 1,475,035
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Total expenditures 10,046,440 10,066,440 7,676,617 2,389,823
Excess(deficiency)of revenues over expenditures (3,457,680) (3,477,680) (1,333,969) 2,143,711
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Other financing sources:
Transfers in-General Fund - 20,000 20,000 -
Excess(deficiency)of revenues and other
sources over expenditures (3,457,680) (3,457,680) (1,313,969) 2,143,711
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Fund balance at beginning of year 8,775,252 8,775,252 8,775,252 -
Fund balance at end of year $ 5,317,572 $ 5,317,572 $ 7,461,283 $ 2,143,711
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See accompanying independent auditors'report. j
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Cemetery Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-miscellaneous-sale of cemetery plots $ 10,000 $ 10,000 $ 10,250 $ 250
Expenditures-health,education and welfare 10,000 10,000 - 10,000
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Excess of revenues over expenditures - - 10,250 10,250
Fund balance at beginning of year 50,409 50,409 50,409 - r
Fund balance at end of year $ 50,409 $ 50,409 $ 60,659 $ 10,250
See accompanying independent auditors'report.
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Parking Meter Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-
Charges for current services-highways and streets $ - $ - $ 14,482 $ 14,482
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Expenditures-
Highways and streets - - - -
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Excess of revenues over expenditures - - 14,482 14,482
Fund balance at beginning of year 112,717 112,717 112,717 -
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Fund balance at end of year $ 112,717 $ 112,717 $ 127,199 $ 14,482
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Vehicle Disposal Fund ,
Schedule of Revenues,Expenditures and Changes in Fund Balance- "
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues: j
Licenses and permits-vehicle disposal fee $2,052,000 $2,052,000 $2,061,984 $ 9,984
Charges for services-towing charges - - 248 248
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Miscellaneous - - 890 890
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Total revenues 2,052,000 2,052,000 2,063,122 11,122
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Expenditures: {
Sanitation 2,703,203 2,703,203 1,049,937 1,653,266
Pension and retirement contributions 35,300 35,300 27,228 8,072
Health fund 20,700 20,700 16,784 3,916
Total expenditures 2,759,203 2,759,203 1,093,949 1,665,254
Excess(deficiency)of revenues over expenditures (707,203) (707,203) 969,173 1,676,376
Fund balance at beginning of year 2,585,078 2,585,078 2,585,078 -
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Fund balance at end of year $1,877,875 $ 1,877,875 $3,554,251 $ 1,676,376 }
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See accompanying independent auditors'report.
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COUNTY OF HAWAII s
Bikeway Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Original Actual Variance
and Final (Budgetary Positive
Budget Basis) (N(Negative)
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Revenues-licenses and permits-
bicycle tax $ 20,000 $ 52,853 $ 32,853 's
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Expenditures-highways and streets 171,000 898 170,102
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Excess(deficiency)of revenues over expenditures (151,000) 51,955 202,955
Fund balance at beginning of year 386,917 386,917 -
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Fund balance at end of year $235,917 $438,872 $202,955 j
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See accompanying independent auditors'report.
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Workforce Investment Act Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
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Budget and Actual(Budgetary Basis) }
For the Fiscal Year Ended June 30,2008
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Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative) j
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Revenues-intergovernmental-federal grants $ - $ 1,009,137 $ 929,648 $ (79,489)
Expenditures-health,education and welfare - 1,009,137 929,648 79,489
Excess of revenues over expenditures
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Fund balance at beginning of year - - - -
Fund balance at end of year $ - $ - $ - $ -
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See accompanying independent auditors'report.
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COUNTY OF HAWAII {
Golf Course Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance- {
Budget and Actual(Budgetary Basis)
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For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Charges for services $ 764,103 $ 764,103 $ 743,194 $ (20,909)
Miscellaneous - - -
Total revenues 764,103 764,103 743,194 (20,909)
Expenditures:
Culture and recreation 877,802 895,722 876,200 19,522
Pension and retirement contributions 140,301 150,301 142,496 7,805
Health fund 80,000 80,000 63,733 16,267
Miscellaneous 16,000 16,000 5,883 10,117 j
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Total expenditures 1,114,103 1,142,023 1,088,312 53,711
Deficiency of revenues over expenditures (350,000) (377,920) (345,118) 32,802
Other financing sources:
Transfers in-General Fund 350,000 377,920 415,792 37,872 j
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Excess of revenues and other sources
over expenditures - - 70,674 70,674
Fund balance at beginning of year 18,598 18,598 18,598 -
Fund balance at end of year $ 18,598 $ 18,598 $ 89,272 $ 70,674
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See accompanying independent auditors'report.
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COUNTY OF HAWAII
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Geothermal Relocation and Community Benefits Fund j
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Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Original Actual Variance j
and Final (Budgetary Positive
Budget Basis) (Negative) j
Revenues-miscellaneous-geothermal royalties $ 300,000 $ 949,138 $ 649,138 i
Expenditures-general government 300,000 -- (300,000)
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Excess of revenues over expenditures - 949,138 949,138
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Fund balance at beginning of year 2,588,611 2,588,611 -
Fund balance at end of year $ 2,588,611 $ 3,537,749 $ 949,138
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See accompanying independent auditors'report.
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COUNTY OF HAWAII
Beautification Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
I
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
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Revenues-licenses and permits-highway 1
beautification $160,000 $160,000 $ 171,833 $ 11,833
Expenditures-highways and streets 225,000 225,000 126,545 98,455
Excess(deficiency)of revenues over expenditures (65,000) (65,000) 45,288 110,288
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Fund balance at beginning of year 803,756 803,756 803,756 -
Fund balance at end of year $738,756 $738,756 $ 849,044 $ 110,288
See accompanying independent auditors'report.
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COUNTY OF HAWAII
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Hawaii County Housing Agency
Schedule of Revenues,Expenditures and Changes in Fund Balance-
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Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2008
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative) i
Revenues:
Intergovernmental-
Federal-HUD-Voucher program $ 11,268,000 $ 13,768,000 $ 12,699,340 $ (1,068,660) j
State-Hmis Transitional&
Homeownership Program - 450,000 450,000 -
Other 53,141 53,141 12,854 (40,287)
Interest earned 2,330 2,330 267,262 264,932
Resale of property - - 150,000 150,000
Other - - 86 86
Total revenues 11,323,471 14,273,471 13,579,542 (693,929)
Expenditures:
Health,education and welfare 11,943,253 16,726,239 15,735,554 990,685
Pension and retirement contributions 486,400 486,400 462,442 23,958
Health Fund 143,300 143,300 135,455 7,845
Miscellaneous 2,130 2,130 - 2,130
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Total expenditures 12,575,083 17,358,069 16,333,451 1,024,618
Deficiency of revenues over expenditures (1,251,612) (3,084,598) (2,753,909) 330,689
Other financing sources:
Transfers in-General Fund 1,251,612 1,397,612 1,397,612 -
Excess(deficiency)of revenues and other
sources over expenditures - (1,686,986) (1,356,297) 330,689
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Fund balance at beginning of year 5,611,459 5,611,459 5,611,459 -
Fund balance at end of year $ 5,611,459 $ 3,924,473 $ 4,255,162 $ 330,689 {
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See accompanying independent auditors'report.
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COUNTY OF HAWAII
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Park Dedication Fund f
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
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Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-interest $ - $ - $ 3,098 $ 3,098
Expenditures-culture and recreation - - - -
Excess of revenues over expenditures - - 3,098 3,098
Fund balance at beginning of year 80,958 80,958 80,958 -
Fund balance at end of year $80,958 $80,958 $84,056 $3,098
See accompanying independent auditors'report.
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COUNTY OF HAWAII
Agency Funds
Combining Balance Sheet
June 30,2008
5
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Performance
State Improvement Improvement Improvement and
Weight District District District Refundable
Tax No. 17 No. 18 Revolving Deposits
Assets
Cash and cash equivalents $ (189) $ 840,004 $ 368,444 $ - $ 229,702
Investments - - 1,241,244 388,886 -
Due from other agency funds - - - -Other receivables 189 33,775 10,199 - 2,029
Restricted assets-
cash and cash equivalents - 637,000 - - -
Total assets $ - $ 1,510,779 $ 1,619,887 $ 388,886 $ 231,731
Liabilities
Due to other agency funds $ - $ - $ - $ - $ 1,945
Accrued liabilities - 38,254 13,701 - -
Customer advances and deposits - - - - 229,786
Assets held for the benefit of
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improvement districts - 1,472,525 1,606,186 388,886 -
Total liabilities $ - $ 1,510,779 $ 1,619,887 $ 388,886 $ 231,731
See accompanying independent auditors'report.
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Non-Profit Organ and Business
Flexible Lapsed License Tissue Improvement
Payroll Spending Warrants Plates Education District
Clearance Account Fund Fund Fund 1 -Kailua Total
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$ 1,718,871 $ 355,777 $ 128,431 $ 1,285 $ 447 $ 12,582 $ 3,655,354
- - - - - - 1,630,130
2,409 - - - 2,409
-- - 23,691 - - 13,898 83,781
- - - - - 637,000
$ 1,718,871 $ 355,777 $ 154,531 $ 1,285 $ 447 $ 26,480 $ 6,008,674
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$ 444 $ - $ - $ 20 $ - $ - $ 2,409 j
1,718,427 355,777 154,531 1,265 447 17,680 2,300,082
- - - - 229,786
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- - - - 8,800 3,476,397
$ 1,718,871 $ 355,777 $ 154,531 $ 1,285 $ 447 $ 26,480 $ 6,008,674
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COUNTY OF HAWAII
Agency Funds
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Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2008
Balance Balance
July 1, June 30,
2007 Additions Deductions 2008
State Weight Tax Fund
Assets
Cash and cash equivalents $ 870,041 $ 10,395,738 $ 11,265,968 $ (189)
Misc.Receivables-due from State of Hawaii $ - $ 189 $ -- 189
Total assets $ 870,041 $ 10,395,927 $ 11,265,968 -
Liabilities
Vouchers payable $ - $ 11,265,968 $ 11,265,968 $ -
Accrued liabilities-due to State of Hawaii 870,041 10,395,927 11,265,968
Total liabilities $ 870,041 $ 21,661,895 $ 22,531,936 $ -
Improvement District No.17
Assets
Cash and cash equivalents $ 844,758 $ 958,742 $ 963,496 $ 840,004 r
Restricted assets-cash and cash equiv. 637,000 - - 637,000
Other receivables 34,846 924,984 926,055 33,775
Total assets $ 1,516,604 $ 1,883,726 $ 1,889,551 $1,510,779 '
Liabilities
Vouchers payable $ - $ 1,350 $ 1,350 $ -
Accrued liabilities 39,483 904,009 905,238 38,254
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Assets held for the benefit
of improvement districts 1,477,121 931,939 936,535 1,472,525
Total liabilities $1,516,604 $ 1,837,298 $ 1,843,123 $ 1,510,779
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COUNTY OF HAWAII
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Agency Funds
Combining Statement of Changes in Assets and Liabilities
1
For the Fiscal Year Ended June 30,2008
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Balance Balance
July 1, June 30,
2007 Additions Deductions 2008
Improvement District No.18
Assets
Cash and cash equivalents $ 356,547 $ 559,897 $ 548,000 $ 368,444
Investments 1,072,456 168,788 - 1,241,244
Other receivables 10,283 406,992 407,076 10,199
Total assets $1,439,286 $ 1,135,677 $ 955,076 $1,619,887 {
Liabilities
Vouchers payable $ - $ 47,023 $ 47,023 $ -
Accrued liabilities 13,549 410,494 410,342 13,701
Assets held for the benefit
of improvement districts 1,425,737 559,872 379,423 1,606,186
Total liabilities $1,439,286 $ 1,017,389 $ 836,788 $1,619,887
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Improvement District Revolving Fund ;
Assets
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Investments $ 374,553 $ 14,333 $ - $ 388,886 I
Liabilities
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Assets held for the benefit
of improvement districts $ 374,553 $ 14,333 $ - $ 388,886
Performance and Refundable
Deposits Fund
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Assets 1
Cash and cash equivalents $ 189,429 $ 467,950 $ 427,677 $ 229,702
Other receivables 4,151 2,029 4,151 2,029
Total assets $ 193,580 $ 469,979 $ 431,828 $ 231,731
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Liabilities
Vouchers payable $ - $ 351,542 $ 351,542 $ -
Due to other agency funds 1,680 1,945 1,680 1,945
Accrued liabilities - - - -
Customer advances and deposits 191,900 461,688 423,802 229,786
Total liabilities $ 193,580 $ 815,175 $ 777,024 $ 231,731
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COUNTY OF HAWAII
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Agency Funds
Combining Statement of Changes in Assets and Liabilities
1
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For the Fiscal Year Ended June 30,2008 j
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Balance Balance
July 1, June 30,
2007 Additions Deductions 2008
Payroll Clearance Fund
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Assets
Cash and cash equivalents $1,601,902 $203,169,119 $203,052,150 $1,718,871 a
Due from other funds - 195,691,662 195,691,662 -
Other receivables - - - -
Total assets $1,601,902 $ 398,860,781 $ 398,743,812 $ 1,718,871
Liabilities
Vouchers payable $ - $ 89,578,822 $ 89,578,822 $ -
Payroll refunds payable - - - -
Due to other agency funds 545 444 545 444
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Accrued liabilities 1,601,357 222,075,309 221,958,239 1,718,427
Total liabilities $1,601,902 $311,654,575 $ 311,537,606 $ 1,718,871
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Flexible Spending Account
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Assets
Cash and cash equivalents $ 338,911 $ 412,225 $ 395,359 $ 355,777
Liabilities
Accrued liabilities $ 338,911 $ 412,225 $ 395,359 $ 355,777 J
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Lapsed Warrants Fund
Assets
1
Cash and cash equivalents $ 112,788 $ 16,804 $ 1,161 $ 128,431
Due from other agency funds 2,245 2,409 2,245 2,409
Other receivables 14,559 23,691 14,559 23,691
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Total assets $ 129,592 $ 42,904 $ 17,965 $ 154,531
Liabilities
Vouchers payable $ - $ 1,162 $ 1,162 $ -
Accrued liabilities 129,592 33,327 8,388 154,531
Total liabilities $ 129,592 $ 34,489 $ 9,550 $ 154,531
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COUNTY OF HAWAII
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Agency Funds
Combining Statement of Changes in Assets and Liabilities
1
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For the Fiscal Year Ended June 30,2008
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Balance Balance
July 1, June 30,
2007 Additions Deductions 2008
Non-Profit License Plates Fund
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Assets
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Cash and cash equivalents $ 1,045 $ 5,170 $ 4,930 $ 1,285
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Liabilities
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Vouchers payable $ - $ 4,885 $ 4,885 $ -
Due to other agency funds 20 20 20 20
Due to non-profit agency 1,025 5,150 4,910 1,265 r
Total liabilities S 1,045 $ 10,055 $ 9,815 $ 1,285
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Organ and Tissue Education Fund _
Assets
Cash and cash equivalents $ 443 $ 2,057 $ 2,053 $ 447
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Liabilities
Vouchers payable $ - $ 2,053 $ 2,053 $ - 1
Accrued'liabilities-due to State of Hawaii 443 1,703 1,699 447
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Total liabilities $ 443 $ 3,756 $ 3,752 $ 447
Business Improvement District 1-Kailua
Assets
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Cash and cash equivalents $ - $ 442,416 $ 429,834 $ 12,582
Misc.Receivables-BID 1-Kailua Assessment - 451,548 442,748 8,800
Misc.Receivable-Due from KVBID - 5,000 - 5,000
Other receivables - 98 - 98
Total assets $ -- $ 899,062 $ 872,582 $ 26,480
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Liabilities
Vouchers payable $ - $ 426,990 $ 426,990 $ -
Due to KVBID - 12,702 - 12,702
Due to other agency funds - 4,978 - 4,978
Assets held for the benefit
of improvement districts - 440,932 432,132 8,800
Total liabilities $ -- $ 885,602 $ 859,122 $ 26,480
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COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2008
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Balance Balance
July 1, June 30,
2007 Additions Deductions 2008
Total-All Agency Funds
Assets
Cash and cash equivalents $4,315,864 $216,430,118 $217,090,628 $3,655,354
Investments 1,447,009 183,121 - 1,630,130
Due from other agency funds 2,245 2,409 2,245 2,409
Misc.Receivables-due from State of Hawaii - 189 - 189
Misc.Receivables-BID 1-Kailua Assessment - 451,548 442,748 8,800
Misc.Receivable-Due from KVBID - 5,000 - 5,000
Other receivables 63,839 1,357,794 1,351,841 69,792
Restricted assets-cash and cash equiv. 637,000 - - 637,000
Total assets $6,465,957 $218,430,179 $218,887,462 $6,008,674
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Liabilities
Vouchers payable $ - $ 101,679,795 $ 101,679,795 $ -
Payroll refunds payable - - -
Due to other agency funds 2,245 7,387 2,245 7,387
Due to non-profit agency 1,025 5,150 4,910 1,265
Accrued liabilities 2,122,892 223,835,364 223,677,566 2,280,690
Accrued liabilities-due to State of Hawaii 870,484 10,397,630 11,267,667 447
Due to KVBID - 12,702 - 12,702
Customer advances and deposits 191,900 461,688 423,802 229,786 j
Assets held for the benefit
of improvement districts 3,277,411 1,947,076 1,748,090 3,476,397
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Total liabilities $6,465,957 $338,346,792 $338,804,075 $6,008,674
See accompanying independent auditors'report. {
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COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Assets
June 30,2008
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Shippers' Total
Geothermal Wharf Private-
Asset Trust Purpose
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Assets Fund Fund Trusts
Cash and cash equivalents $ - $ 1,880,747 $ 1,880,747
Investments 1,896,349 972,446 2,868,795
Receivables - 2,727 2,727
Total assets 1,896,349 2,855,920 4,752,269
Liabilities
Accrued liabilities - - -
Total liabilities - - -
Net Assets
Held in trust for other parties 1,896,349 2,855,920 4,752,269
Total net assets $ 1,896,349 $ 2,855,920 $ 4,752,269
See accompanying independent auditors'report.
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COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Assets
For the Fiscal Year Ended June 30,2008
Shippers' Total
Geothermal Wharf Private-
Asset Trust Purpose
Fund Fund Trusts
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Additions
Contributions: j
Puna Geothermal Venture $ 50,000 $ - $ 50,000 '•
Investment earnings:
Net decrease in fair value of investments - (132,212) (132,212)
Dividends - 48,203 48,203
Interest 67,426 64,144 131,570
Total additions 117,426 (19,865) 97,561
Deductions
Grant payments - 97,640 97,640
Total deductions - 97,640 97,640
Change in net assets 117,426 (117,505) (79)
Net assets,beginning of year 1,778,923 2,973,425 4,752,348
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Net assets,end of year $ 1,896,349 $ 2,855,920 $ 4,752,269
See accompanying independent auditors'report.
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