HomeMy WebLinkAbout2009 CAFR COMPREHENSIVE
ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2009
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COUNTY OF HAWAII
Hilo, Hawaii
William P. Kenoi
Mayor
William Takaba
Managing Director
Prepared by
The Department of Finance
Nancy E. Crawford
Director of Finance
COUNTY OF HAWAII
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2009
Table of Contents
Page
INTRODUCTORY SECTION
Letter of Transmittal 1
GFOA Certificate of Achievement 7
Organization Chart 8
List of Elected Officials 9
List of Principal Officials 10
FINANCIAL SECTION
Independent Auditors'Report 11
Management's Discussion and Analysis 13
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets 26
Statement of Activities 28
Fund Financial Statements:
Balance Sheet-Governmental Funds 30
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets 31
Statement of Revenues,Expenditures,and Changes in Fund Balances-
Governmental Funds 32
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities 34
Statement of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)-General Fund 36
Statement of Net Assets-Proprietary Funds 40
Statement of Revenues,Expenses,and Changes in Fund Net Assets-
Proprietary Funds 41
Statement of Cash Flows-Proprietary Funds 42
Statement of Fiduciary Net Assets-Fiduciary Funds 43
Statement of Changes in Fiduciary Net Assets-Fiduciary Funds 44
Notes to the Basic Financial Statements 45
Required Supplementary Information 84
FINANCIAL SECTION (Continued)
Pave
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds 86
Combining Statement of Revenues,Expenditures,and Changes in Fund
Balances-Nonmajor Governmental Funds 90
Schedules of Revenues,Expenditures,and Changes in Fund Balances-
Budget and Actual(Budgetary Basis):
Highway Fund 93
Sewer Fund 94
Solid Waste Fund 95
Cemetery Fund 96
Parking Meter Fund 97
Vehicle Disposal Fund 98
Bikeway Fund 99
Workforce Investment Act Fund 100
Golf Course Fund 101
Geothermal Relocation and Community Benefits Fund 102
Beautification Fund 103
Hawaii County Housing Agency 104
Park Dedication Fund 105
Combining Balance Sheet-Agency Funds 106
Combining Statement of Changes in Assets and Liabilities-Agency Funds 108
Combining Statement of Net Assets-Private Purpose Trusts 113
Combining Statement of Changes in Net Assets-Private Purpose Trusts 114
STATISTICAL SECTION
Table 1 -Net Assets by Component 115
Table 2-Changes in Net Assets 116
Table 3 -Fund Balances,Governmental Funds 117
Table 4-Changes in Fund Balance,Governmental Funds 118
Table 5-Real Property Assessed Values by Classification and Tax Rates 119
Table 6-Principal Taxpayers 123
Table 7-Property Tax Levies and Collections 124
Table 8-Ratios of Outstanding Debt by Type 125
Table 9-Ratios of General Bonded Debt Outstanding 126
Table 10-Legal Debt Margin Information 127
Table 11 -Demographic and Economic Statistics 128
Table 12-Principal Employers,County of Hawaii 129
Table 13 -Full-Time Equivalent County Government Employees by Function 130
Table 14-Operating Indicators by Function 131
Table 15-Capital Asset Statistics by Functions 132
INTRODUCTORY SECTION
,MZV OF
William P.Kenoi �°'�c� - Nancy E.Crawford
Mayor Director
Deanna S. Sako
,+,,.f '►` Deputy Director
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County of Hawaii
Finance Department
25 Aupuni Street, Room 2103 • Hilo,Hawaii 96720
(808)961-8234 . Fax(808)961-8569
February 11, 2010
The Honorable Mayor and Members of the Council
County of Hawaii
25 Aupuni Street
Hilo,Hawaii 96720
We transmit herewith the Comprehensive Annual Financial Report for the County of Hawaii,
State of Hawaii (the County), for the fiscal year July 1,2008 to June 30, 2009.
This report was prepared by the County's Department of Finance. The accuracy of the financial
statements and the completeness and fairness of their presentation are the responsibility of the
County government. We believe.the enclosed data are complete and accurate in all material
respects and are reported in a manner designed to present fairly the financial position and results
of operations of the various funds of the County. All disclosures necessary to convey the
maximum understanding of the County's financial activities have been included. Management's
discussion and analysis is also included to aid users of the financial statements.
This report presents the financial position of the County of Hawaii at June 30, 2009 and results
of operations for the fiscal year then ended. The report is divided into three sections:
• The Introductory Section includes this transmittal letter, a Certificate of Achievement for
Excellence in Financial Reporting,the County of Hawai`i's organization chart and lists of
elected and principal officials.
• The Financial Section contains management's discussion and analysis,the basic financial
statements,related notes,the combining and individual fund budgetary financial statements,
and the independent auditors'report.
• The Statistical Section includes selected financial and demographic information, generally
presented on.a multi-year basis.
This report includes all funds of the County of Hawaii, including its component unit,the
Department of Water Supply, established by the County Charter as a semi-autonomous body of
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the County government. This component unit is included in the County's reporting entity
because of its financial relationship with the County.
The County provides a full range of municipal services. These include police and fire protection;
emergency medical care;public prosecutor; culture and recreation; sanitation; social services;
water;planning and zoning; construction and maintenance of highways, streets and
infrastructure;Teal property assessment and tax collection; and general administrative services.
However,the County does not provide such other traditional services as public education,
hospitals and courts. These services are provided by the State government.
The County consists of the island of Hawaii, 4,028 square miles in size. it is twice as large as
the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there is
no other local or municipal government within the County,there are no overlapping taxes and no
overlapping debt. The County has an elected mayor and a nine-member council.
Economic Condition and Outlook
The island of Hawaii, commonly known as the Big Island,-is located 214 miles from Honolulu,
the state capital; 2,200 miles from the west coast of the continental United States; and 4,000
miles from Japan. The city of Hilo on the east side of the island serves as the county seat as well
as the transportation and financial center for the Big Island. Hilo's infrastructure includes Hilo
Harbor, a deep-water port,and Hilo International Airport,which is capable of handling fully-
loaded wide-bodied aircraft. Kailua-Kona and South Kohala, major tourist destination areas on
the west side of the Big Island, are served by flights from the United States mainland,Japan and
Canada through the Kona International Airport. Scheduled freight services are available
between the islands by air and sea transport. Communities on the island are linked by a network
of State and County maintained streets and highways.
The Big Island is the most diversified of the neighbor island economics. As a result it is buffered
to some extent when any one industry lags. However,it seemed that 2009 proved to be a
challenge for most of the major sectors of the island's economy. Ongoing construction projects
of the County, State and the University served to mitigate some of the decline in the construction
industry.
The County's labor force numbered 86,325 at June 2009. The troubled economic situation
facing the County is evident in the increasing unemployment rate,which doubled from the end of
Fiscal Year 2008 (4.5%)to the end of Fiscal Year 2009 (9.9%). As in previous sluggish
economic periods,the sectors of tourism and construction suffered the primary job losses.
Tourism—Despite substantial decreases in the recent year,tourism remains the major industry
on the island. In addition to the mild climate and natural beauty it shares with other areas in the
state,the County features the Hawaii Volcanoes National Park. A popular attraction,the park is
the most visited site in the state, handling over 2 million visitors annually,which became even
more popular with the increased activity of Kilauea Volcano. Total visitors to Hawaii decreased
by almost 19%from 1,517,455 arrivals in Fiscal Year 2008 to 1,229,268 arrivals in Fiscal Year
2009.
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Scientific Research and Development—Due largely to its unique geographic characteristics
which has attracted scientists in fields of astronomy,meteorology,volcanology, and
agriculture/aquaculture, the County has benefited economically by the significant investments
made in scientific research. The total astronomy related capital investment on Mauna Kea
exceeds$600 million and combined annual budgets are about$72 million,while direct
employment has increased slightly from approximately 475 to approximately 525. On July 21,
2009,the TMT Observatory Corporation announced that its board of directors had selected
Mauna Kea over Chile as the preferred site for the Thirty Meter Telescope(TMT). It is
projected that the TMT project will pour an estimated$1.2 billion into the economy over nine
years,resulting in 300 construction jobs and 140 full-time permanent jobs. The Hawaiian
Volcano Observatory in Hawaii Volcanoes National Park and the Natural Energy Laboratory of
Hawaii Authority at Keahole,Kona are also major contributors to international research and the
local economy.
Agriculture—Forestry,nut and fruit orchards, and floral and vegetable farms have successfully
replaced lands where sugar once grew. Agriculture makes a substantial contribution to the
County's economy and produces a variety of goods for export as well as for local consumption
but this sector of the economy did face its own obstacles this past year. Prices for coffee began
to fall toward the end of last season but are expected to rise as the season continues.
Major Initiatives
For the Year
During the year,the County focused on public works,planning, and other issues affecting the
quality of life in the County.
Public Safety—Construction continued on the new Pahoa Fire Station with total costs exceeding
$4.3 million by the end of the year to help meet the growing public safety needs in the Puna-
Pahoa area.
Public Works—The County spent over$20 million in combined Federal and County funds on
the construction of housing for the community, which consisted of the Ainakea Senior
Residences and the Waikoloa Housing projects. Work began on the$50 million, 85,000-square-
foot West Hawaii Civic Center on Kealakehe Parkway in 2008, and is scheduled for completion
in 2011. The center will consolidate under one roof, 28 County departments, currently at
different locations in West Hawaii, and one State agency.
Planning—The Puna District, Kona District,North Kohala District and South Kohala District
Community Development Plan's(CDP)were adopted. In addition,the Action Committees for
each of these CDPs are being formed to implement the plans.
In December 2008, the American Institute of Architects(AIA) selected Downtown Hilo as a
recipient for the 2009 Sustainable Design Assessment Team(SDAT)Program. The SDAT
program is a community assistance program that focuses on assisting communities with
implementing principles of sustainability.
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Environmental Management—The Department commissioned the West Hawaii Resource
Recovery facilities including a new scrap metal facility, organics collection and processing area
and vehicle impound lot. The design plans for the.construction of two (2)new onsite and offsite
sewer collection systems were completed.
For the Future
Public Safety—Expansion and upgrade of Fire and Police facilities around the island are in
progress. The Pahoa Police sub-station is nearing completion with an expected completion date
of May 2010. This facility will provide better service to the Pahoa community as police staffing
including the District Commander and his administrative staff will be available at this facility on
a part time basis and as it will house the Department of Finance,Vehicle Registration and
Licensing Division for the district.
The South Kona Police Station is nearing completion of its design phase. This facility will
improve police service to the South Kona community as personnel assigned to this facility will
be assigned to the district of South Kona as opposed to the current situation in which both
districts of North and South Kona axe treated as one area of command and personnel stationed in
North Kona.
The County has begun the process of hiring a project manager to upgrade the County's current
radio system to meet Federal Communications Commission(FCC)efficiency requirements.
Also,private and public grant applications are currently in process to provide an island-wide
broadband communication system.
Public Works —The Ane Keohokalole Highway or Mid-Level Road will commence
construction in the second quarter of 2010. The$30 million dollar project is being built with
American Reinvestment and Recovery Act(Stimulus Funds). The Ane Keohokalole Highway
will connect Kailua-Kona from Henry Street and Palani Road to the Kealakehe Parkway. The
project will provide construction jobs and enhance further development in the immediate areas.
The Highway is expected to be in service by early 2012. Additionally,the County is working on
several major road projects to enhance traffic flow in West Hawaii.
Planning—The Department will be continuing its public outreach program for the proposed
Community Development Plan for the districts of Kau and Hamakua.
Other Financial Information
Internal Control
The management of the County is responsible for establishing and maintaining an internal
control structure designed to ensure that the assets of the County are protected from loss,theft or
misuse and to ensure that adequate accounting data are compiled to allow for preparation of
financial statements in conformity with generally accepted accounting principles. The internal
control structure is designed to provide reasonable,but not absolute,assurance that these
objectives are met. The concept of reasonable assurance recognizes that(1)the cost of a control
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should not exceed the benefits likely to be derived; and(2)the valuation of costs and benefits
requires estimates and judgments by management.
Budgetary Control
The County maintains budgetary controls to ensure that legal provisions of the annual budget are
complied with and that expenditures do not exceed budgeted amounts.
Activities of the general fund and special revenue funds are included in the annual appropriated
operating budget. Project-length financial plans are adopted for the capital projects fund.
Budgetary control is established at the department level.
Formal budgetary integration is employed as a management control device for the general fund,
special revenue funds, and the capital projects fund. Budgetary control for the debt service fund
is achieved through general obligation bond indenture provisions.
The basis of accounting used for the budgets of the general and special revenue funds differs
from generally accepted accounting principles. Intergovernmental revenues are recognized when
awarded by the granting agency, encumbrances and unexpended allotments are treated as
expenditures for purposes of determining legal compliance with the annual budget, all leases are
treated as operating leases, and accounts payable are not accrued.
The County also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Encumbrances outstanding at fiscal year end are reported as
reservations of fund balances and do not constitute expenditures or liabilities because they will
be honored during the following year. As demonstrated by the statements and schedules
included in the financial section of this report,the County continues to meet its responsibility for
sound financial management.
Cash Management
Cash temporarily idle during the year was invested in savings accounts, money market mutual
funds,certificate of deposits,repurchase agreements, and agency notes. The average yield on
deposits and investments was 2.55%.
The County's policy is to minimize credit and market risks while maintaining a competitive yield
on its portfolio. Accordingly,with the exception of$200,467 held by a rental management
agent,deposits were either insured by federal depository insurance, collateralized, or secured by
irrevocable letters of credit. All collateral on deposit was held for safe keeping with a County-
designated agent in the County's name.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants.
KPMG LLP was selected by the County Council to perform the audit.
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Employee Union Contracts
County employees are members of eight different bargaining units. Seven of the bargaining units
have contracts that run through June 30,2011 and negotiations are still in progress with the
eighth bargaining unit.
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada(GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the County of
Hawaii for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2008.
This was the twenty-first consecutive year that the government has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized comprehensive annual financial report. This report
must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
Comprehensive Annual Financial Report continues to meet the Certificate of Achievement
Program's requirements, and we are submitting it to the GFOA to determine its eligibility for
another certificate.
Acknowledgments
The preparation of this report was made possible by the efficient and dedicated services of the
entire staff of the Department of Finance and fiscal personnel in other departments. I am grateful
for their help in preparing this report. I also thank the Mayor and the members of the County
Council for their interest and support in assuring the continuing sound financial condition of the
County of Hawaii.
R41"_1 57 J��
NANCV E. CRAWF RD
Director of Finance
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Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
County of Hawaii
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
6
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m Monns
km
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NAP President
Executive Director
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County of Hawaii
Organization Chart
County Electorate
County Council Mayor Prosecuting Attorney
County Legislative Office of Mana eg ment:
Clerk Auditor Managing Director
Departments and agencies Agencies under Departments under
under direct supervision administrative supervision commissions and
of the Mayor and/or of the Mayor: administrative supervision
Managing Director: of the Mayor:
Corporation Counsel Civil Defense Civil Service
Finance Office ofAging Police
Planning Mass Transportation Liquor Control
Environmental Management Housing&Community Fire
Research&Development Development Water Supply
Puhlic Works (semi-autonomous)
Parks&Recreation
Data Systems
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County of Hawaii
Elected Officials
Administrative Officers (Term: 2008-2012)
William P. Kenoi Mayor
Jay T. Kimura Prosecuting Attorney
County Council (Term: 2008-2010)
J Yoshimoto Chair
Emily I.Naeole-Beason Vice Chair
Guy Enriques Member
Brenda Ford Member
Kelly Greenwell Member
Pete Hoffman Member
Donald Ikeda Member
Dennis "Fresh"Onishi Member
Dominic Yagong Member
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Principal Officials
June 30, 2009
County Clerk Kenneth Goodenow
Legislative Auditor Colleen Schrandt
Managing Director William Takaba
Deputy Managing Director Walter Lau
Corporation Counsel Lincoln Ashida
Director of Finance Nancy E. Crawford
Planning Director Bobby Jean Leithead-Todd
Director of Personnel Michael R. Ben
Director of Research and Development Randy Kurohara
Chief of Police Harry S. Kubojiri
Fire Chief Darryl Oliveira
Director of Public Works Warren Lee
Director of Environmental Management Lono Tyson
Director of Parks and Recreation Robert Fitzgerald
Manager,Department of Water Supply Milton Pavao
Civil Defense Administrator Quince Mento
Director of Liquor Control Janice A. Pakele
Transit Operations Administrator Thomas Brown
Executive on Aging Alan Parker
Administrator, Office of Housing and
Community Development Stephen Arnett
Director of Data Systems Burt Tsuchiya
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KPMG LLP
PO Box 4150
Honolulu,HI 96812-4150
Independent Auditors'Report
The Chair and Members
County Council
County of Hawaii
State of Hawaii:
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the County of Hawaii, State of Hawaii (the County), as of and for the year ended June 30,
2009,which collectively comprise the County's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the County's management. Our responsibility is to
express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the County's internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation.We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the County
as of June 30, 2009, and the respective changes in financial position, and where applicable, cash flows
thereof, and the respective budgetary comparisons for the general fund for the year then ended in
conformity with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated February 11,
2010 on our consideration of the County's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
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KPMG LLP,a U.S.limited liability partnership,is the U.S.
member firm of KPMG International,a Swiss cooperative.
The management's discussion and analysis on pages 13 through 23 is not a required part of the basic
financial statements but is supplementary information required by U.S. generally accepted accounting
principles. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information.However,we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the County's basic financial statements. The introductory section, the combining and individual
nonmajor fund financial statements and schedules, and the statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The combining and
individual nonmajor fund financial statements and schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a whole. The introductory section and
the statistical section have not been subjected to the auditing procedures applied in the audit of the basic
financial statements,and accordingly,we express no opinion on them.
LLP
February 11, 2010
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MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the County of Hawai`i's(the County)Comprehensive Annual Financial Report
presents a narrative overview and analysis of the financial activities of the County for the fiscal
year ended June 30,2009. We encourage readers to consider the information presented here in
conjunction with additional information that we have furnished in our letter of transmittal.
FINANCIAL HIGHLIGHTS
• The assets of the County exceeded its liabilities at the end of the fiscal year by$526.6 million
(net assets). This amount includes$43.1 million in unrestricted net assets,an increase of
$15.1 million from the prior year.
• The County's total net assets increased by$12 million during the fiscal year.
• As of the close of the current fiscal year,the County's governmental funds reported combined
ending fund balances of$243.6 million,a decrease of$11.0 million from the prior year.
Approximately 21 percent of this total amount, $50.6 million, is available for spending at the
County's discretion(unreserved fund balance).
• At the end of the current fiscal year,unreserved fund balance for the general fund was$44.6
million,or 18.3 percent of total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements comprise three components: (1)
Government-wide financial statements,(2)Fund financial statements,and(3)Notes to the basic
financial statements. This report also contains other supplementary information in addition to
the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the County's finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the County's assets and liabilities,
with the difference between the two reported as net assets. Over time,increases or decreases in
net assets may serve as a useful indicator of whether or not the financial position of the County is
improving or deteriorating.
The statement of activities presents information showing how the County's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus,revenues and expenses arc reported in this statement for some items that will only result in
cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses
pertaining to earned but unused vacation and sick leave.
Both of the government-wide financial statements distinguish functions of the County that are
principally supported by taxes and intergovernmental revenues(governmental activities)from
other functions that arc intended to recover all or a significant portion of their costs through user
fees and charges(business-type activities). The governmental activities of the County include
public safety,highways and streets,health,education and welfare,culture and recreation,
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sanitation and general government. The business-type activities of the County include rental
housing for senior citizens and families.
The government-wide financial statements include not only the County itself(known as the
primary government),but also the Department of Water Supply,a legally separate entity that the
County is financially accountable for. Financial information for this component unit is reported
separately from the financial information presented for the primary government itself.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related
accounts which are used to maintain control over resources that have been segregated for specific
activities or objectives. The County, like other state and local governments,uses fund accounting
to ensure and demonstrate compliance with finance-related legal requirements. All of the funds
of the County can be divided into the following three categories: governmental funds,
proprietary funds,and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements—
i.e.,most of the County's basic services are reported in governmental funds. These
statements,however,focus on(1)how cash and other financial assets can readily be
converted to available resources and(2)the balances left at year-end that are available for
spending. Such information may be useful in determining what financial resources are
available in the near future to finance the County's programs.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements,it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so,readers may better understand the long-term impact of the
government's near-term financing decisions. Both the governmental funds balance sheet
and the governmental funds statement of revenues,expenditures,and changes in fund
balances provide a reconciliation to facilitate this comparison between governmental funds
and governmental activities.
The County maintains several individual governmental funds organized according to their
type(general,special revenue,debt service,and capital projects). Information is presented
separately in the governmental funds balance sheet and in the governmental funds statement
of revenues,expenditures,and changes in fund balances for the general fund and capital
projects fund,which are considered to be major funds. Data from the remaining
governmental funds are combined into a single,aggregated presentation. Individual fund
data for each of the non-major governmental funds is provided in the form of combining
statements elsewhere in this report.
The County adopts an annual appropriated budget for its general fund and special revenue
funds. A budgetary comparison statement has been provided for these funds to demonstrate
compliance with this budget. The budgetary comparison statement for the general fund is
located in the basic financial statements,whereas the budgetary comparison statements for
the nonmajor special revenue funds are presented elsewhere in this report.
Proprietary funds. Proprietary funds are generally used to account for services for which
the County charges outside customers. Proprietary funds provide the same type of
information as shown in the government-wide financial statements, only in more detail. The
County maintains only one type of proprietary funds,enterprise funds. Enterprise funds
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are used to report the same functions presented as business-type activities in the government-
wide financial statements. The County uses enterprise funds to account for the operations of
the Kulaimano Elderly Housing Project and the Ouli Ekahi Affordable Housing Project.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the County. The private-purpose trusts and the agency funds are reported
under the fiduciary funds. Since the resources of these funds are not available to support the
County's own programs,they are not reflected in the government-wide financial statements.
The accounting used for fiduciary funds is much like that used for proprietary funds.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Other Supplementary Information
In addition to the basic financial statements and accompanying notes,this report also presents
supplementary information,including the combining statements referred to earlier in connection
with nonmajor governmental funds and budget comparison statements for the nonmajor special
revenue funds. This supplementary information is presented immediately following the notes to
the basic financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Condensed Schedule of Net Assets
June 30,2009 and 2008
Primary Government
Governmental Activities Business-type Activities Total
2009 2008 2009 2008 2009 2008
Assets:
Current and other assets $287,338,601 $295,415,507 $1,189,499 $ 1,202,438 $288,528,100 $296,617,945
Capital assets,net 661,265,646 608,669,449 1,249,251 1,278,316 662,514,897 609,947,765
Total assets $948,604,247 $904,084,956 $2,438,750 $2,480,754 $951,042,997 $906,565,710
Liabilities:
Long-term liabilities
outstanding 393,196,221 361,199,734 944,124 970,892 394,140,345 362,170,626
Other liabilities 29,927,036 29,403,624 395,058 409,891 30,322,094 29,813,515
Total liabilities $423,123,257 $390,603,358 $1,339,182 $1,380,783 $424,462,439 $391,984,141
Net assets:
Invested in capital assets,net
of related debt 419,615,479 419,174,559 305,127 307,424 419,920,606 419,481,983
Restricted 63,408,379 66,977,935 184,643 184,352 63,593,022 67,162,287
Unrestricted 42,457,132 27,329,104 609,798 608,195 43,066,930 27,937,299
Total net assets $525,480,990 $513,481,598 $1,099,568 $1,099,971 $526,580,558 $514,581,569
- 15 -
Analysis of Net Assets
As noted earlier,net assets may serve over time as a useful indicator-of a government's financial
position. In the case of the County,assets exceeded liabilities by$526.6 million at the close of
the most recent fiscal year.
By far the largest portion of the County's net assets(80 percent)reflects its investment in capital
assets(e.g., land, buildings,infrastructure,and equipment) less any related debt used to acquire
those assets that is still outstanding. The County uses these capital assets to provide services to
citizens; consequently,these assets are not available for future spending. Although the County's
investment in its capital assets is reported net of related debt,it should be noted that the resources
needed to repay this debt must be provided from other sources,since the capital assets themselves
cannot be used to liquidate these liabilities.
An additional portion of the County's net assets(12 percent)represents resources that are subject
to external restrictions on how they may be used.
At the end of the current fiscal year,the County is able to report positive balances in all three
categories of net assets,both for the government as a whole,as well as for its separate
governmental and business-type activities.
The County's net assets increased by$12 million during the current fiscal year. Although real
property tax valuations increased approximately$19 million,the offsetting decrease represents
the degree to which increases in ongoing expenses have outstripped similar increases in ongoing
revenues.
The County's current and other assets decreased by$8.1 million during the current fiscal year.
Approximately$13.6 million of the decrease is due to a decrease in cash and investments,which
is offset by a$3.9 million increase in receivables. The decrease in cash and investments is
primarily due to the spending of proceeds from previously issued bonds. The majority of the
increase in receivables is due to an increase in the amount of real property taxes uncollected at
fiscal year end.
The County's net capital assets increased by$52.6 million due to the large amount of capital
improvement projects done by the County during the current fiscal year. See further discussion
of the increase in capital assets on page 21.
The County's long-term liabilities outstanding increased by$32 million due to the new general
obligation bonds issued during the current year offset by principal payments. See further
discussion of the increase in long-term debt outstanding on page 22.
The County's other liabilities increased by$0.5 million primarily due to increases in accounts
payable and accrued liabilities($1.6 million)offset by decreases in other liabilities($.9 million)
and unearned revenue($.2 million).
- 16 -
Condensed Schedule of Changes in Net Assets
For the Fiscal Years Ended June 30,2009 and 2008
Primary Government
Governmental Activities Business-type Activities Total
2009 2008 2009 2008 2009 2008
Revenues:
Program revenues:
Chat ges for set vices $ 38,432,997 $ 42,557,486 $ 371,511 $ 365,655 $ 38,804,508 $ 42,923,141
Operating grants and contributions 42,273,795 46,117,399 135,674 125,795 42,359,469 46,243,194
Capital giants and contributions 15,728,186 9,327,408 - - 15,728,186 9,327,408
General revenues:
Property taxes 229,262,980 210,217,690 229,262,980 210,217,690
Other taxes 29,009,085 25,296,206 29,009,085 25,296,206
Grants and contributions,mrrestricted 17,888,019 19,395,089 17,888,019 19,395,089
Investment earnings 8,369,221 11,454,850 17,861 33,828 8,387,082 11,488,678
Miscellaneous 2,749,335 7,801,194 - - 2,749,335 7,801,194
Total revenues 383,713,618 372,167,322 525,046 525,278 384,188,664 372,692,600
Expenses:
General government 69,968,534 68,794,961 - 69,968,534 68,794,961
Public safety 144,755,837 137,500,608 144,755,837 137,500,608
Highways and streets 36,466,541 33,577,707 36,466,541 33,577,707
Health,education and welfare 33,783,223 14,986,972 525,449 556,304 34,258,672 15,543,276
Culture and recreation 32,633,418 20,450,172 - - 32,633,418 20,450,172
Sanitation 40,191,704 41,254,728 40,191,704 41,254,728
interest on long-term debt 13,914,969 13,117,325 13,914,969 13,117,325
Total expenses 371,714,226 329,682,473 525,449 556,304 372,189,675 330,238,777
inerease(decrease)in net assets 11,999,392 42,484,849 (403) (31,026) 11,998,989 42,453,823
Net assets at beginning ofyear 513,481,598 470,996,749 1,099,971 1,130,997 514,581,569 472,127,746
Net assets at end ofyear $525,480,990 $513,481,598 $ 1,099,568 $ 1,099,971 $526,580,558 $514,581,569
Analysis of Changes in Net Assets
Governmental activities. Governmental activities increased the County's net assets by
$12 million or basically all of the total growth in net assets of the County.
Total revenues increased by$11.5 million(3 percent). The County's property taxes increased by
$19 million(9 percent)during the year. Most of this increase is attributable to the increase in
assessed values. Miscellaneous revenues decreased by$5 million (65 percent)mostly due to the
lack of real property sales in the current year. Investment earnings and operating grants and
contributions decreased by$3.1 million(27 percent)and$3.9 million(8 percent),respectively.
The decrease in investment earnings was a result of lower interest rates
Total expenses increased by$42 million(13 percent). The majority of the expense categories
increased and this was partly due to negotiated pay raises and related employee benefits.
Increases are also due to an increase in capital expenditures for this fiscal year. For the most part,
other fluctuations in expenses closely paralleled inflation and growth in demand for services.
- 17 -
Expenses and Program Raven u as-Gavernme ntal Activities
Year Ended June 30,2009
160,000,000
140,000,000
■6 peises
126,000,000 o woPaR�re�en��
106,000,000
80,000,000
60,000,000
46,000,000
20,000,000
General Publlcsafety Highwaysand Health, Cullumand Sanllalion Interest on
govemment 3reels educatu n and —cation leng4—debt
v lf-
Revenues by Source-Governmental Activities
Year Ende d J une 30,2009
Investment earnings Miscellaneous
1%
%
Grants a nd mrtrlbutlons not
restricted to sp eclflc
programs
Olhertaxe s� Operating grantsand
7% Charges for co irtribdlons
11
Ce pltal g ra nn an d
—Hbulions
4%
Property taxes
60%
O
The charts above illustrate the County's governmental expenses and revenues by function,and its
revenues by source. As shown, public safety is the largest function in expense(39 percent),
followed by general government(19 percent)and highways and streets(10 percent). General
revenues such as property and other taxes are not shown by program,but are effectively used to
support program activities countywide. For governmental activities overall,without regard to
programs,property taxes are the largest single source of funds(60 percent),followed by
operating grants and contributions(11 percent)and charges for services(10 percent).
Business-type activities. Business-type activities decreased the County's net assets by$403.
Expenses for health,education and welfare account for all of the$525,449 of expenses. Charges
for services were$371,511,operating grants and contributions were$135,674 and investment
earnings were$17,861. Expenses decreased$30,855 (6 percent)due primarily to a decrease in
repairs and maintenance($29,402).
FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the County's governmental funds is to provide information
on near-term inflows,outflows,and balances of spendable resources. Such information is useful
in assessing the County's financing requirements. In particular,unreserved fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
As of the end of the current fiscal year,the County's governmental funds reported combined
ending fund balances of$243.6 million,a decrease of$10.9 million in comparison with prior
year. Approximately 21 percent of this total amount($50.6 million)constitutes unreserved fund
balance,which is available for spending at the County's discretion. The remainder of the fund
balance is reserved to indicate that it is not available for new spending because it has already been
committed 1)to liquidate contracts and purchase orders for last fiscal year($124.3 million), 2)to
pay debt service($22.8 million),or 3)for a variety of other restricted purposes($45.8 million).
The general fund is the chief operating fund of the County. At the end of the current fiscal year,
unreserved fund balance of the general fund was$44.6 million,while total fund balance reached
$59.6 million. As a measure of the general fund's liquidity,it may be useful to compare both
unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund
balance represents 18 percent of total general fund expenditures,while total fund balance
represents 24 percent of that same amount.
The fund balance of the County's general fund increased by$10.7 million during the current
fiscal year. Key factors in this increase are as follows:
• An increase of$17.5 million(8 percent)in property tax revenue due to increasing property
values.
• An increase of$2.9 million(7 percent)in general government expenditures due primarily to
increases in expenditures for finance($2.2 million). The increase of$2.2 million in finance
is primarily due to the transfer of the County's real property leases to the Property
Management division in finance from all the other County departments.
- 19 -
• An increase of$2.8 million(3 percent) in public safety expenditures due primarily to
increases in expenditures for police($.6 million),fire($.8 million)and civil defense($1.6
million). Increases were noted in many of the grant-funded programs as well as in salaries
and wages due to negotiated pay increases.
The fund balance of the County's capital projects fund decreased by$24.7 million during the
current fiscal year. The decrease is primarily due to the combined total of the fund's main
revenue sources of bond proceeds($50.2 million),intergovernmental revenue($6.8 million),
transfers in($4.0 million)and state revolving fund loan proceeds($.3 million)being less than
capital expenditures($86.0 million)for the current fiscal year.
Although the fund balance of the capital projects fund was$120.5 million at the end of the
current fiscal year,the unreserved portion of the fund balance was a negative$20.1 million. This
was due to a change in the County's procedures regarding the issuance of bonds,in that the
County defers the issuance of bonds until the funds are actually needed even though the project
will be allotted so that work may begin.
The debt service funds,included in other governmental funds, have combined total fund balances
of$22.8 million,all of which is reserved for the payment of debt service. The net increase in the
combined fund balances during the current year in the debt service funds was $.7 million
(3 percent).
Proprietary funds. The County's proprietary funds provide the same type of information found
in the government-wide financial statements,but in more detail.
Unrestricted net assets of the Kulaimano Elderly Housing Project(Kulaimano)at the end of the
year amounted to$700,676,and the unrestricted net deficit of the Ouli Ekahi Affordable Housing
Project(Ouli Ekahi)amounted to $90,878. The net assets for Kulaimano decreased by$13,605
and the net assets for Ouli Ekahi increased by$13,202. Other factors concerning the finances of
these two funds have already been addressed in the discussion of the County's business-type
activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget were primarily the result
of a$16.4 million increase in appropriations,of which$16.3 million is due to increases in the
appropriations for capital and operating grants and contributions.
Differences between the final budget and the actual(budgetary basis)resulted in$10.7 million
less revenues than expected and$23.9 million less expenditures than appropriated. This is
primarily due to the following factors:
• $4.5 million negative variance in taxes and assessments revenue resulting from collections
being less than expected.
• $6.9 million negative variance in intergovernmental revenue,including$2.3 million in
federal grants and$4.6 million in state grants.
• $20.6 million is due to the increased efforts by each department to control costs during the
budget year due to the tough financial situation facing the County. Amount consists
primarily of variances in the following functions: general government($7.9 million),public
-20 -
safety($8.0 million),health,education and welfare($1.7 million)and culture and education
($2.0 million).
• $3.0 million is due to lower than anticipated payments needing to be made in cash in lieu of
vacation payments,unemployment,workers compensation and pension related payments.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The County's investment in capital assets for its governmental and business-type
activities as of June 30, 2009 amounts to$662.5 million (net of accumulated depreciation). This
investment in capital assets includes land,buildings and improvements,equipment,and
infrastructure assets,which consists of primarily roads and bridges. The total increase in the
County's investment in capital assets for the current fiscal year was nine percent.
Major capital asset events during the current fiscal year included the following:
• Construction continued on both phases of the Hawaii County Building Improvements Project;
construction in progress as of the end of the current fiscal year had reached$17.3 million.
• Construction continued on the Waikoloa Housing Project;construction in progress as of the
end of the current fiscal year had reached$24.8 million.
• Construction continued on the East Hawaii Regional Sort Station; construction in progress as
of the end of the current fiscal year had reached$6.5 million.
• Construction continued on the Pahoa Fire Station; construction in progress as of the end of
the current fiscal year had reached$4.4 million.
• Construction began on the West Hawaii Civic Center;construction in progress as of the end
of the current fiscal year had reached$10.9 million.
• Construction was completed on the Aupuni Center Parking Improvements Project;
construction in progress of$3.9 million was transferred to Infrastructure.
• Construction was completed on the Hoolulu Park Accessibility Improvements Project;
construction in progress of$5.2 million was transferred to Buildings&Improvements.
• Construction was completed on the Isaac Hale Park Expansion Improvements; construction in
progress of$4.6 million was transferred to Buildings&Improvements.
• Construction was completed on the Keaukaha Gymnasium Complex Project;construction in
progress of$4.3 million was transferred to Buildings&Improvements.
• Construction was completed on the Laiopua Connector Road Project;construction in progress
of$10.4 million was transferred to Infrastructure.
• Construction was completed on the One Pauahi Place Project; construction in progress of
$9.5 million was transferred to Buildings&Improvements.
• Construction was completed on the Puamako Street Extension Project;construction in
progress of$35.7 million was transferred to Infrastructure.
-21 -
Capital Assets
(net of depreciation)
As of June 30,2009 and 2008
Primary Government
Governmental Activities Business-type Activities Total
2009 2008 2009 2008 2009 2008
Land $ 28,644,734 S 28,187,574 $ 753,877 $ 753,877 $ 29,398,611 $ 28,941,451
Infrastructure assets 226,557,289 162,915,082 - - 226,557,289 162,915,082
Ground and site improvements - - 78,843 82,598 78,843 82,598
Buildings and improvements 256,229,424 247,018,221 403,575 428,189 256,632,999 247,446,410
Equipment 49,486,543 45,506,721 12,956 13,652 49,499,499 45,520,373
Construction work in progress 100,347,656 125,041,851 100,347,656 125,041,851
Total $661,265,646 S 608,669,449 $ 1,249,251 $ 1,278,316 $662,514,897 $609,947,765
Additional information on the County's capital assets can be found in note 6 to the basic financial
statements.
Long-term debt. Long-term debt is comprised of bonds of$291.4 million and State Revolving
Fund loans of$26.7 million. At the end of the current fiscal year,the County had total bonded
debt outstanding of$291.4 million. This entire amount was comprised of general obligation
bonds which are backed by the full faith and credit of the County.
The County's total bonded debt increased by$34.3 million(1 33 percent)during the current fiscal
year due to the issuance of$50 million in bonds which was offset by normal principal reduction.
The County maintained an"AA-"rating from Standard&Poor's,an"Al"rating from Moody's
and an"A+"rating from Fitch for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue to 15 percent of
the total assessed value of all county real property as established for tax purposes on the last tax
assessment rolls. The current debt limitation for the County is $4.4 billion,which is in excess of
the County's outstanding general obligation debt. Currently the County's outstanding debt
represents seven percent of our debt limitation.
At the end of the current fiscal year,the County also had loans outstanding from the State Water
Pollution Control Revolving Fund amounting to$26.7 million and notes payable to the U.S.
Department of Agriculture,Farmers Home Administration amounting to $.9 million.
Additional information on the County's long-term debt can be found in note 10 to the basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• The unemployment rate for the County at the end of the current fiscal year is at 11.5 percent,
which is up from last year's rate at the same time of 6.0 percent.
• The number of visitors to the County for the current fiscal year was 1,229,268,down by
almost 19.0 percent from the previous year's count of 1,517,455.
Both of these factors were considered in preparing the County's budget for the 2010 fiscal year.
-22 -
At the end of the current fiscal year,unreserved fund balance in the general fund was$44.6
million. The County has appropriated$16.1 million of this amount for spending in the 2010
fiscal year budget.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the County's finances for all
those with an interest in the government's finances. Questions concerning any of the information
provided in this report or requests for additional information should be addressed to the Director
of Finance,County of Hawaii,25 Aupuni Street, Suite 2103,Hilo,Hawaii 96720.
-23 -
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BASIC FINANCIAL STATEMENTS
COUNTY OF HAWAII
Statement of Net Assets
June 30,2009
Primary Government
Governmental Business-type Component
Activities Activities Total Unit
Assets
Current assets:
Cash and cash equivalents(notes 3 and 14) $127,051,551 $ 197,145 $127,248,696 $ 34,143,524
Restricted cash and cash equivalents(note 3) - 33,844 33,844 -
Investments(notes 3 and 14) 79,776,164 700,000 80,476,164 2,363,441
Receivables,net(note 4) 34,656,701 58,823 34,715,524 4,990,830
Receivable from improvement district
(notes 4 and 10) 92,699 - 92,699 -
Internal balances(note 5) 1,350 (1,350) - -
Inventories 2,825,603 - 2,825,603 1,326,061
Prepaid expenses - 1,550 1,550 195,319
Other 2,872,419 - 2,872,419 -
Total current assets 247,276,487 990,012 248,266,499 43,019,175
Investments(note 3) 36,834,059 - 36,834,059 -
Restricted cash and cash equivalents(note 3) - 199,487 199,487 -
Restricted investments(note 14) - - - 14,132,135
Loans receivable,excluding current portion - - - 249,006
Receivable from improvement district, excluding
current portion(notes 4 and 10) 3,228,055 - 3,228,055 -
Deferred charges - - - 7,656,168
Capital assets(notes 6, 8 and 14):
Utility plant in service,net - - - 184,331,786
Infrastructure assets,net 226,557,289 - 226,557,289 -
Ground and site improvements, net - 78,843 78,843 -
Buildings and improvements,net 256,229,424 403,575 256,632,999 -
Equipment,net 49,486,543 12,956 49,499,499 -
Construction work in progress 100,347,656 - 100,347,656 32,940,806
Land 28,644,734 753,877 29,398,611 1,714,727
Total capital assets,net 661,265,646 1,249,251 662,514,897 218,987,319
Total noncurrent assets 701,327,760 1,448,738 702,776,498 241,024,628
Total assets 948,604,247 2,438,750 951,042,997 284,043,803
(Continued)
-26-
COUNTY OF HAWAII
Statement of Net Assets
June 30,2009
(Concluded)
Primary Government
Governmental Business-type Component
Activities Activities Total Unit
Liabilities
Current liabilities:
Accounts payable and accrued liabilities $ 10,781,229 $ 390,927 $ 11,172,156 $ 2,713,754
Unearned revenue(note 7) 8,646,261 4,131 8,650,392 -
Interest due on long-term debt 6,446,974 - 6,446,974 1,268,576
Bonds and loans payable,current portion net
(notes 10 and 14) 19,268,720 28,734 19,297,454 2,518,000
Compensated absences,current portion(note 10) 8,278,701 - 8,278,701 1,503,598
Claims and judgments,current portion
(notes 10, 12 and 14) 3,611,994 - 3,611,994 54,807
Capital leases,current portion(notes 8 and 10) 1,427,134 - 1,427,134 -
Landfill costs payable,current portion
(notes 9 and 10) 183,380 - 183,380 -
Customers'deposits for service connections - - - 629,890
Other 4,052,572 - 4,052,572 -
Total current liabilities 62,696,965 423,792 63,120,757 8,688,625
Noncurrent liabilities:
Bonds and loans payable,net
(notes 10 and 14) 301,358,890 915,390 302,274,280 39,591,178
Compensated absences(note 10) 21,928,396 - 21,928,396 1,203,389
Claims and judgments(notes 10, 12 and 14) 14,065,715 - 14,065,715 190,193
Capital leases(notes 8 and 10) 2,752,671 - 2,752,671 -
Landfill costs payable(notes 9 and 10) 20,320,620 - 20,320,620 -
Customers'deposits payable from
restricted assets - - - 14,132,135
Total noncurrent liabilities 360,426,292 915,390 361,341,682 55,116,895
Total liabilities 423,123,257 1,339,182 424,462,439 63,805,520
Net Assets
Invested in capital assets,net of
related debt 419,615,479 305,127 419,920,606 195,151,646
Restricted for:
Capital projects 40,589,436 - 40,589,436 -
Debt service(note 10) 22,818,943 184,643 23,003,586 -
Unrestricted 42,457,132 609,798 43,066,930 25,086,637
Total net assets $525,480,990 $ 1,099,568 $526,580,558 $ 220,238,283
See accompanying notes to the basic financial statements.
-27 -
COUNTY OF HAWAII
Statement of Activities
For the Fiscal Year Ended June 30,2009
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Proerams Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government $ 69,968,534 $ 5,442,950 $ 1,978,368 $ 4,453,624
Public safety 144,755,837 4,846,834 20,314,296 50,831
Highways and streets 36,466,541 9,636,799 635,709 10,954,010
Health,education and welfare 33,783,223 532,832 18,365,635 34,563
Culture and recreation 32,633,418 1,557,597 56,870 118,118
Sanitation 40,191,704 16,415,985 922,917 117,040
Interest on long-term debt 13,914,969 - - -
Total governmental activities 371,714,226 38,432,997 42,273,795 15,728,186
Business-type activities:
Health,education and welfare 525,449 371,511 135,674 -
Total primary government $ 372,239,675 $ 38,804,508 $ 42,409,469 $ 15,728,186
Component unit:
Water(note 14) $ 46,956,962 $ 39,890,495 $ - $ 11,246,419
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.
-28 -
Net(Expense)Revenue and Changes in Net Assets
Primary Government
Governmental Business-type Component
Activities Activities Total Unit
$ (58,093,592) $ - $ (58,093,592) $ -
(119,543,876) - (119,543,876) -
(15,240,023) - (15,240,023) -
(14,850,193) - (14,850,193) -
(30,900,833) - (30,900,833) -
(22,735,762) - (22,735,762) -
(13,914,969) - (13,914,969) -
(275,279,248) - (275,279,248) -
(18,264) (18,264) -
(275,279,248) (18,264) (275,297,512) -
- - - 4,179,952
229,262,980 - 229,262,980 -
10,228,607 - 10,228,607 -
11,118,365 - 11,118,365 -
7,662,113 - 7,662,113 -
17,888,019 - 17,888,019 -
8,369,221 17,861 8,387,082 932,621
2,749,335 - 2,749,335 -
287,278,640 17,861 287,296,501 932,621
11,999,392 (403) 11,998,989 5,112,573
513,481,598 1,099,971 514,581,569 215,125,710
$ 525,480,990 $ 1,099,568 $526,580,558 $220,238,283
-29-
COUNTY OF HAWAII
Governmental Funds
Balance Sheet
June 30,2009
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Assets
Cash and cash equivalents(note 3) $17,210,630 $ 60,263,601 $ 49,577,320 $127,051,551
Investments(note 3) 38,684,453 60,627,701 17,298,069 116,610,223
Receivables,net(note 4) 12,941,034 723,958 2,463,887 16,128,879
Due from other governmental
funds(note 5) 743,332 302,647 642,361 1,688,340
Due from other nongovernmental
funds(note 5) - - 1,350 1,350
Receivables from other
governments(note 4) 8,251,229 9,091,346 1,185,247 18,527,822
Inventories 2,825,603 - - 2,825,603
Other 667,135 - 633,168 1,300,303
Total assets $81,323,416 $ 131,009,253 $ 71,801,402 $284,134,071
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 2,484,492 $ 4,694,169 $ 3,602,568 $ 10,781,229
Due to other governmental
funds(note 5) 41,831 259,552 1,386,957 1,688,340
Deferred revenue(note 7) 15,784,236 5,536,903 2,730,044 24,051,183
Other- 3,434,610 - 617,962 4,052,572
Total liabilities 21,745,169 10,490,624 8,337,531 40,573,324
Fund balances:
Reserved for:
Encumbrances 10,831,607 98,957,648 14,556,243 124,345,498
Inventories 2,825,603 - - 2,825,603
Taxicab investigations 56,992 - - 56,992
Liquor control 1,260,070 - - 1,260,070
Unexpended allotments - 41,662,350 - 41,662,350
Debt service(note 10) - - 22,818,943 22,818,943
Unreserved,reported in:
General fund 44,603,975 - - 44,603,975
Special revenue funds - - 26,088,685 26,088,685
Capital projects funds - (20,101,369) - (20,101,369)
Total fund balances 59,578,247 120,518,629 63,463,871 243,560,747
Total liabilities and fund balances $81,323,416 $ 131,009,253 $ 71,801,402 $284,134,071
See accompanying notes to the basic financial statements.
- 30-
COUNTY OF HAWAII
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets
June 30, 2009
Total fund balances-governmental funds $243,560,747
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 28,644,734
Infrastructure assets,net 226,557,289
Buildings and improvements,net 256,229,424
Equipment,net 49,486,543
Construction work in progress 100,347,656
Total capital assets 661,265,646
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) 15,404,923
Excess contributions over Other Postemployment Obligation(OPEB) 1,572,116
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
Bonds and loans payable,net of receivable
from improvement district (317,306,857)
Accrued interest on bonds (6,446,974)
Capital leases (4,179,805)
Compensated absences (30,207,097)
Claims and judgments (17,677,709)
Landfill closure/postclosure costs (20,504,000)
Total long-term liabilities (396,322,442)
Net assets of governmental activities $525,480,990
See accompanying notes to the basic financial statements.
- 31 -
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues,Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2009
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Revenues
Property tax $225,858,382 $ - $ - $225,858,382
Public service company tax 10,228,607 - - 10,228,607
Fuel tax - - 7,662,113 7,662,113
Public utility franchise tax - - 11,118,365 11,118,365
Licenses and permits 5,897,305 - 9,074,404 14,971,709
Intergovernmental 46,502,485 6,832,460 17,534,214 70,869,159
Charges for services 5,191,673 - 16,211,993 21,403,666
Investment earnings 8,833,653 - 80,302 8,913,955
Miscellaneous 3,511,776 80,684 2,097,601 5,690,061
Total revenues 306,023,881 6,913,144 63,778,992 376,716,017
Expenditures
Current:
General government 45,872,984 - 9,096 45,882,080
Public safety 101,343,315 - 6,196,238 107,539,553
Highways and streets 4,036,242 - 13,122,848 17,159,090
Sanitation 966,392 - 34,058,635 35,025,027
Health,education and welfare 7,086,707 - 17,508,830 24,595,537
Culture and recreation 17,827,992 - 1,025,514 18,853,506
Pension and retirement
contributions(note 13) 24,770,545 - 4,099,125 28,869,670
Employees'health insurance 17,540,502 - 1,578,724 19,119,226
Other post employment benefits 14,950,000 - - 14,950,000
Miscellaneous 5,518,545 - 738,496 6,257,041
Debt service:
Principal 239,899 - 19,509,234 19,749,133
Interest 18,330 - 12,772,189 12,790,519
Capital outlay 3,341,887 86,025,796 - 89,367,683
Total expenditures 243,513,340 86,025,796 110,618,929 440,158,065
Excess(deficiency)of revenues
over expenditures 62,510,541 (79,112,652) (46,839,937) (63,442,048)
(Continued)
- 32 -
COUNTY OF HAWAII
Governmental Funds
Statement of Revenues,Expenditures,and Changes in Fund Balances
For the Fiscal Year Ended June 30,2009
(Concluded)
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Other Financing Sources(Uses),including transfers
Sale of assets $ 58,253 $ - $ - $ 58,253
Increase in capital leases(notes 8 and 10) 32,086 - 994,080 1,026,166
State Revolving Fund loans(note 10) - 279,545 - 279,545
Sale of bonds(note 10) - 50,184,863 - 50,184,863
Transfers in(note 5) - 3,981,566 52,714,976 56,696,542
Transfers out(note 5) (52,834,783) - (3,861,759) (56,696,542)
Total other financing sources(uses) (52,744,444) 54,445,974 49,847,297 51,548,827
Net change in fund balances 9,766,097 (24,666,678) 3,007,360 (11,893,221)
Fund balance at beginning of year 48,870,351 145,185,307 60,456,511 254,512,169
Increase in reserve for inventories 941,799 - - 941,799
Fund balance at end of year $ 59,578,247 $120,518,629 $63,463,871 $243,560,747
See accompanying notes to the basic financial statements.
- 33 -
COUNTY OF HAWAII
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30,2009
Net change in fund balances-total governmental funds $ (11,893,221)
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds.
However,in the statement of activities,the cost of capital assets is
allocated over their estimated useful lives as depreciation expense. In
the current period,these amounts are:
Capital outlay and dedicated property 79,222,942
Depreciation expense and loss on disposals (26,626,745)
Excess of capital outlay over depreciation expense 52,596,197
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:
General obligation bonds,net of refunding (50,000,000)
Premium on bond issuance (184,863)
Deferred amount on refunding of bonds -
SRF loan obligations (279,545)
Capital lease obligations (1,026,166)
Total debt proceeds (51,490,574)
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
Bond principal retirement,net of refunding 15,337,800
SRF loan repayment 2,958,443
Capital lease payments 1,452,888
Total long-term debt repayment 19,749,131
Because some revenues will not be collected for several months after the
County's fiscal year end,they are not considered"available"revenues and
are "deferred" in the governmental funds. Unearned revenues increased by
this amount this year. 2,328,726
(Continued)
- 34-
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, 2009
(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:
Increase in inventory $ 941,799
Increase in Other Postemployment Obligation(OPEB) 1,572,116
Increase in compensated absences (2,237,036)
Decrease in claims and judgments 1,810,702
Increase in landfill closure/po stclo sure care costs (254,000)
Amortization of premium from bond issuance 275,628
Amortization of deferred amount on refunding of bonds (248,721)
Net increase in accrued interest (1,151,355)
Net additional expenditures 709,133
Change in net assets of governmental activities $ 11,999,392
See accompanying notes to the basic financial statements.
- 35 -
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 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Taxes and assessments:
Real property taxes $ 232,244,000 $ 232,244,000 $ 225,858,382 $ (6,385,618)
Public service company taxes 8,305,000 8,305,000 10,228,607 1,923,607
Total taxes and assessments 240,549,000 240,549,000 236,086,989 (4,462,011)
Licenses and permits:
Nonbusiness licenses and permits 4,055,797 4,055,797 2,923,510 (1,132,287)
Business licenses 1,711,576 1,711,576 1,483,723 (227,853)
Street use 1,635,000 1,635,000 1,490,072 (144,928)
Total licenses and permits 7,402,373 7,402,373 5,897,305 (1,505,068)
intergovernmental:
Federal:
Programs for the aged 2,374,410 2,613,683 1,442,623 (1,171,060)
Community development block grants - 3,047,364 3,047,364 -
HOME program grant - 989,346 989,346 -
Law enforcement 1,913,307 4,774,682 3,755,442 (1,019,240)
Other 2,956,449 10,383,703 10,295,105 (88,598)
Total federal 7,244,166 21,808,778 19,529,880 (2,278,898)
State:
State General Fund-Act 185,
SLH 1990 20,110,000 20,110,000 17,388,813 (2,721,187)
Emergency medical services 13,565,711 13,565,711 12,892,433 (673,278)
Other 4,584,851 6,273,655 5,055,502 (1,218,153)
Total State 38,260,562 39,949,366 35,336,748 (4,612,618)
Total intergovernmental revenue 45,504,728 61,758,144 54,866,628 (6,891,516)
Charges for current services:
General government 4,299,995 4,299,995 3,965,584 (334,411)
Culture and recreation 873,070 873,070 821,017 (52,053)
Highways and streets 242,500 242,500 308,582 66,082
Public safety 153,878 153,878 96,490 (57,388)
Total charges for current services 5,569,443 5,569,443 5,191,673 (377,770)
Fines and forfeitures 1,732,500 1,732,500 2,022,557 290,057
Rents 70,500 70,500 92,280 21,780
(Continued)
-36-
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 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues(continued):
Interest and penalties $ 6,650,000 $ 6,650,000 $ 8,405,247 $ 1,755,247
Miscellaneous 4,353,375 4,514,375 5,010,129 495,754
Total revenues 311,831,919 328,246,335 317,572,808 (10,673,527)
Expenditures:
Current:
General government:
Finance 13,610,016 13,613,118 11,195,484 2,417,634
General government building 6,241,167 6,295,776 4,725,814 1,569,962
Legislative 5,890,539 5,037,040 4,334,824 702,216
Automotive equipment 4,847,184 4,497,184 3,974,520 522,664
Law 3,093,616 3,093,616 2,833,941 259,675
Research and development 3,147,217 3,452,143 3,174,987 277,156
Planning and zoning 3,888,723 3,980,311 3,282,398 697,913
Mayor's office 1,888,537 2,069,037 1,945,433 123,604
Engineering 2,800,987 3,056,987 2,733,185 323,802
Data systems 1,578,029 1,578,029 1,382,435 195,594
Personnel services 2,116,180 2,123,956 1,910,184 213,772
Public works administration 1,308,145 1,310,905 1,163,362 147,543
Elections 1,348,672 1,348,672 902,189 446,483
Total general government 51,759,012 51,456,774 43,558,756 7,898,018
Public safety:
Police department 50,798,492 52,323,657 49,002,870 3,320,787
Fire department 37,187,821 37,786,952 36,295,091 1,491,861
Prosecuting attorney 9,053,649 9,308,799 7,374,534 1,934,265
Protective inspection 2,489,170 2,437,441 2,114,199 323,242
Liquor control 1,663,076 1,707,576 1,283,145 424,431
Flood control 1,017,502 1,367,502 1,311,206 56,296
Civil defense agency 721,483 3,782,700 3,319,546 463,154
Animal control 2,051,119 2,070,119 2,070,119 -
Total public safety 104,982,312 110,784,746 102,770,710 8,014,036
Highways and streets:
Mass transit 4,983,244 5,971,056 5,854,975 116,081
(Continued)
-37-
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 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Expenditures(continued):
Current(continued):
Sanitation:
Environmental management $ 1,676,793 $ 1,676,793 $ 890,516 $ 786,277
Health,education and welfare:
Elderly activities 3,513,699 3,672,128 3,284,256 387,872
Office of Aging 2,692,827 2,814,413 1,490,057 1,324,356
Education 65,000 65,000 62,112 2,888
Social programs 1,500,000 1,500,000 1,500,000 -
Cemeteries 354,134 378,109 362,656 15,453
Physical examination 133,825 133,825 133,825 -
Total health,education and welfare 8,259,485 8,563,475 6,832,906 1,730,569
Culture and recreation:
Community music 468,294 410,294 248,084 162,210
Organized recreation:
Maintenance 7,702,799 7,720,065 7,240,271 479,794
Recreation 2,598,909 2,648,304 2,601,774 46,530
Aquatics 2,395,151 2,400,151 2,258,594 141,557
Hoolulu Park complex 987,848 990,048 955,546 34,502
Administration 3,250,052 3,232,751 2,484,442 748,309
Children's zoo 673,327 700,327 676,530 23,797
Summer/intersession 498,365 507,415 300,947 206,468
Culture and arts 161,979 225,179 208,072 17,107
Elderly activities administration 725,798 737,123 592,169 144,954
Total culture and recreation 19,462,522 19,571,657 17,566,429 2,005,228
Pension and retirement contributions 25,637,204 25,637,204 24,562,221 1,074,983
Health fund 33,750,000 32,776,000 32,490,502 285,498
Miscellaneous 5,236,000 6,072,066 4,117,033 1,955,033
Total current 255,746,572 262,509,771 238,644,048 23,865,723
(Continued)
-38 -
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 30,2009
(Concluded)
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Expenditures(continued):
Capital Outlay:
Community Development Block
grants(HUD) $ - $ 3,107,364 $ 3,107,364 $ -
HOME Program - 1,014,346 989,484 24,862
Other - 51374,200 5,374,200 -
Total capital outlay - 9,495,910 9,471,048 24,862
Total expenditures 255,746,572 272,005,681 248,1 15,096 23,890,585
Excess of revenues over expenditures 56,085,347 56,240,654 69,457,712 13,217,058
Other financing uses:
Transfers out:
Sewer Fund - - - -
Capital Projects Fund - (119,807) (119,807) -
Housing Fund (1,501,860) (1,516,860) (1,516,860) -
Solid Waste Fund (19,147,721) (19,150,221) (19,150,221) -
Golf Course Fund (433,418) (433,418) (433,418) -
Highway Fund - (18,000) (18,000) -
Self Insurance Fund (1,000,000) (1,000,000) (1,000,000) -
Disaster/Emergency Fund (1,000,000) (1,000,000) (1,000,000) -
Public Access,Open Space,and Natural
Resources Preservation Fund (4,738,000) (4,738,000) (4,517,173) 220,827
Budget Stabilization Fund (1,000,000) (1,000,000) (1,000,000) -
Debt Service Fund (43,379,348) (43,379,348) (35,151,414) 8,227,934
Total transfers out (72,200,347) (72,355,654) (63,906,893) 8,448,761
Total other financing uses (72,200,347) (72,355,654) (63,906,893) 8,448,761
Excess(deficiency)of revenues and other
sources over(under)expenditures and other uses (16,115,000) (16,115,000) 5,550,819 21,665,819
Fund balance at beginning of year 48,870,351 48,870,351 48,870,351 -
Fund balance at end of year $ 32,755,351 $ 32,755,351 $ 54,421,170 $ 21,665,819
See accompanying notes to the basic financial statements.
-39-
COUNTY OF HAWAII
Proprietary Funds
Statement of Net Assets
June 30,2009
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Assets
Current assets:
Cash and cash equivalents(note 3) $ - $ 196,995 $ 196,995
Restricted cash and cash equivalents(note 3) 11,703 22,141 33,844
Investments(note 3) 700,000 - 700,000
Tmprest fund(note 3) 50 100 150
Receivables(note 4) 7,536 51,287 58,823
Prepaid expenses 1,550 - 1,550
Total current assets 720,839 270,523 991,362
Noncurrent assets:
Restricted cash and cash equivalents(note 3) 184,643 14,844 199,487
Capital assets(note 6):
Land and site improvements 511,000 503,877 1,014,877
Buildings and equipment 1,233,943 - 1,233,943
Less accumulated depreciation (999,569) - (999,569)
Total capital assets 745,374 503,877 1,249,251
Total noncurrent assets 930,017 518,721 1,448,738
Total assets 1,650,856 789,244 2,440,100
Liabilities
Current liabilities:
Bank overdraft 3,402 - 3,402
Accounts payable 1,115 346,208 347,323
Internal balances(note 5) 1,350 - 1,350
Due to developer - 7,729 7,729
Security deposits payable from restricted assets 11,703 20,770 32,473
Deferred revenue(note 7) 2,593 1,538 4,131
Notes payable,current portion(note 10) 28,734 - 28,734
Total current liabilities 48,897 376,245 425,142
Noncurrent liabilities:
Notes payable(note 10) 915,390 - 915,390
Total liabilities 964,287 376,245 1,340,532
Net Assets
Invested in capital assets,net of related debt (198,750) 503,877 305,127
Restricted for debt service 184,643 - 184,643
Unrestricted 700,676 (90,878) 609,798
Total net assets $ 686,569 $ 412,999 $ 1,099,568
See accompanying notes to the basic financial statements.
-40-
COUNTY OF HAWAII
Proprietary Funds
Statement of Revenues,Expenses,and Changes in Fund Net Assets
For the Fiscal Year Ended June 30,2009
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Operating revenues:
Rental receipts from tenants $ 110,408 $ 254,060 $ 364,468
Rental subsidy from federal government-HUD 135,674 - 135,674
Laundry receipts 2,778 - 2,778
Miscellaneous - 4,265 4,265
Total operating revenues 248,860 258,325 507,185
Operating expenses:
Utilities 34,799 32,836 67,635
General and administration 87,122 116,540 203,662
Maintenance and repairs 57,046 53,535 110,581
Lease expense - 42,225 42,225
Depreciation(note 6) 34,055 - 34,055
Total operating expenses 213,022 245,136 458,158
Operating income 35,838 13,189 49,027
Nonoperating revenues(expenses):
Investment income 17,848 13 17,861
Interest expense (67,144) - (67,144)
Loss on disposal of fixed assets (147) - (147)
Total nonoperating revenue(expenses) (49,443) 13 (49,430)
Change in net assets (13,605) 13,202 (403)
Net assets,beginning of year 700,174 399,797 1,099,971
Net assets,end of year $ 686,569 $ 412,999 $ 1,099,568
See accompanying notes to the basic financial statements.
-41 -
COUNTY OF HAWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2009
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Cash Flows from Operating Activities
Receipts from tenants $ 110,558 $ 257,678 $ 368,236
Receipts from federal government-HUD 135,674 - 135,674
Payments to suppliers for goods and services (184,376) (257,528) (441,904)
Net cash provided by(used in)operating activities 61,856 150 62,006
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable (26,768) - (26,768)
Interest paid on notes payable (67,144) - (67,144)
Purchase of capital assets (5,137) - (5,137)
Net cash used in capital and related financing activities (99,049) - (99,049)
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 17,894 17 17,911
Net cash provided by investing activities 17,894 17 17,911
Net increase(decrease)in cash and cash equivalents (19,299) 167 (19,132)
Cash and cash equivalents at beginning of year 212,293 233,913 446,206
Cash and cash equivalents at end of year $ 192,994 $ 234,080 $ 427,074
Reconciliation of Operating(Loss)Income to Net Cash
Provided by(Used in)Operating Activities
Operating(loss)income $ 35,838 $ 13,189 $ 49,027
Adjustments to reconcile operating loss to net cash
provided by(used in)operating activities:
Depreciation expense 34,055 - 34,055
Change in assets and liabilities:
Receivables 144 (1,559) (1,415)
Prepaid expenses (76) - (76)
Accounts and other payables (5,486) (11,400) (16,886)
Unearned income (2,619) (80) (2,699)
Net cash provided by(used in)operating activities $ 61,856 $ 150 $ 62,006
Supplemental disclosure of cash flow information-Interest paid $ 67,144 $ - $ 67,144
See accompanying notes to the basic financial statements.
-42 -
COUNTY OF HAWAII
Fiduciary Funds
Statement of Fiduciary Net Assets
June 30,2009
Private-
Purpose Agency
Trusts Funds
Assets
Cash and cash equivalents(note 3) $ 3,864,164 $ 4,761,222
Investments(note 3) 815,560 1,421,046
Receivables:
Due from other agency funds - 1,082
Other receivables 649 263,327
Total receivables 649 264,409
Restricted cash and cash equivalents(note 3) - 637,000
Total assets 4,680,373 $ 7,083,677
Liabilities
Due to other agency funds - 1,082
Accrued liabilities - 3,520,224
Advances payable - 325,634
Assets held for benefit of improvement districts - 3,236,737
Total liabilities - $ 7,083,677
Net Assets
Held in trust for other parties 4,680,373
Total net assets $ 4,680,373
See accompanying notes to the basic financial statements.
-43 -
COUNTY OF HAWAII
Fiduciary Funds
Statement of Changes in Fiduciary Net Assets
For the Fiscal Year Ended June 30,2009
Private-
Purpose
Trusts
Additions
Contributions:
Puna Geothermal Venture $ 50,000
Investment earnings:
Net decrease in fair value of investments (156,886)
Dividends 49,705
Interest 75,889
Total additions 18,708
Deductions
Appraisal fees 90,604
Total deductions 90,604
Change in net assets (71,896)
Net assets,beginning of year 4,752,269
Net assets, end of year $ 4,680,373
See accompanying notes to the basic financial statements.
-44-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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
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.
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,
welfare, health and judicial functions. There are no separate city,county or township
governments nor any school districts, special districts,authorities or public corporations with
overlapping authority.
GASB Statement No. 14 defines component units as legally separate organizations for which
the elected officials of the primary government are financially accountable. "Financial
accountability"is the level of accountability that exists if a primary government appoints a
voting majority of an organization's governing board and is either-able to impose its will on
that organization or there is a potential for the organization to provide specific financial
benefits to,or impose specific financial burdens on,the primary government. A primary
government has the ability to impose its will on an organization if it can significantly
influence the programs,projects,activities or level of services performed or provided by the
organization. An organization has a financial benefit or burden relationship with the primary
government if any one of three conditions exist: (1)The primary government is legally
entitled to or can otherwise access the organization's resources; (2)The primary government
is legally obligated or has otherwise assumed the obligation to finance the deficits of,or
provide financial support to,the organization;or(3)The primary government is obligated in
some manner for the debt of the organization.
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,
-45 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
the Department of Water Supply(the Department). This component unit is included in the
County's reporting entity because of its financial relationship with the County.
Discretely Presented Component Unit The component unit column in the basic financial
statements includes the financial data of the Department,a legally independent agency of the
County that is accounted for as an enterprise fund. It is reported in a separate column to
emphasize that it is legally separate from the County. The members of the Water
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
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 30,2009
The fund financial statements' emphasis is on the major funds in either the governmental or
business-type categories. Nonmajor funds(by category)are summarized into a single
column.
The governmental funds in the fund financial statements are presented 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
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
-47-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
Activities in funds—The financial transactions of the County are recorded in individual
funds. Each fund is accounted for by providing a separate set of self-balancing accounts that
comprises its assets, 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
Analvsis—fbr 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.
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:
Kulainiano 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.
The County reports the following fiduciary funds:
Private-Purpose Trust Funds—Used to account for funds received from geothermal
developers to mitigate the effects of geothermal energy development. Also used to
account for investment income on funds received from import businesses at the port of
Hilo and the related expenditures to promote health and safety on the island of Hawaii.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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.
Modifzed 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,tines and forfeitures,penalties and
miscellaneous revenues are recorded as revenues when received in cash because they are
generally not measurable until actually received. State Revolving Fund loan proceeds are
considered available when collected.
-49-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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
recognized as expenditures when due.
In accordance with GASB Statement No. 20,Accounting and Financial Reporting for
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.
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
commitments will be honored during the subsequent year.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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
investment contracts(U.S. government sponsored agency issues and negotiable certificates of
deposit)as well as nonparticipating investment contracts(time certificates of deposit and
repurchase agreements). Both categories of investments are stated at amortized cost(see Note
3). Investments also consist of equity securities in the fiduciary fund financial statements.
These investments are stated at fair value based on closing quoted prices.
Real Property Taxes
The County's real property taxes are levied on July 1 each year on assessed valuation as of
January 1. The taxes become a lien on the property assessed as of the levy date. Taxes are
due and payable in two equal annual installments on August 20 and February 20.
Accordingly,real property taxes receivable as of June 30 are delinquent. Each delinquent
installment bears interest at I%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.
Liquor Control
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 30,2009 of$1,260,070 are reflected as a reserve of general fund balance.
- 51 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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:
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:
Buildings and improvements 50 years
Equipment 5 to 10 years
Ground and site improvements 20 to 50 years
Long-term Obligations
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
reported as liabilities in those funds.
- 52-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Compensated Absences
Employees earn vacation credit at the rate of one and three-quarter working days for each
month of service. Up to ninety days of vacation leave credits can be accumulated per
employee. In addition,employees who work overtime can elect to take compensatory time off
instead of overtime pay. The time off is earned at the rate of one-and-a-half hours for each
hour of overtime worked. There is no statutory limit to the amount of compensatory time off
an employee can accumulate. Both compensatory time off and vacation credits are converted
to pay upon termination of employment.
A liability for these amounts is reported in the Governmental Funds only if they have
matured,for example, as a result of employee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government-wide statement of net 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
the Employees' Retirement System of the State of Hawaii. Accumulated sick leave at
June 30,2009 totaled$62,073,088 for the primary government.
Leases
Leases transferring substantially all of the risks and benefits of ownership are recorded as
capital leases; other leases are operating leases(see Note 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
includes the normal cost plus the level annual payment required to amortize the unfunded
actuarial accrued liability. The County's policy is to fund its required contribution annually
(see Note 13).
- 53 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Operating Revenues and Expenses
Revenues and expenses are distinguished between operating and nonoperating items for the
proprietary funds. Operating revenues generally result from providing services in connection
with the proprietary funds'principal ongoing operations. The principal operating revenues of
the proprietary funds are fees charged to residents for rent and rental subsidies received from
the federal government.
Operating expenses include the costs associated with providing housing for tenants, such as
utilities,lease rent,and maintenance and repairs;administrative expenses; and depreciation
on capital assets. All revenues and expenses not meeting these definitions are reported as
nonoperating revenues and expenses.
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
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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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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 2008-2009 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$16.4 million in the general fund and$7.4
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.
• 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
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.
- 55 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Budget to GAAP Reconciliation
The following is a summary of the adjustments necessary to convert fund balances of the
County's general fund from a GAAP basis to a budgetary basis at June 30,2009:
General Fund
Ending fund balance—GAAP basis $59,578,247
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 14,465,089
Ending encumbrances and unexpended allotments (10,831,607)
Other adjustments (8,790,559)
Ending fund balance—Non-GAAP budgetary basis $54,421,170
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 27 checking and savings accounts for various funds and with various
financial institutions. Bank deposits are under the custody of the Director of Finance. For
financial statement reporting purposes,cash and short-term investments consist of cash,time
certificate of deposit,and money market accounts. Cash and short-term investments also
include repurchase agreements and government sponsored securities with original maturities
of three months or less.
The carrying amount of the County's unrestricted and restricted deposits(cash,time
certificates of deposit,and money market accounts)as of June 30,2009 was$127,248,696
and$233,331,respectively, for the primary government and$8,625,386 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$240,843,002 at June 30,2009. Of that amount, $240,642,535
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$200,467
represent deposits held by a management agent and were uncollateralized. Accordingly,these
- 56-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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
The County holds investments both for its own benefit and on behalf of some of the Fiduciary
Funds. The County's investments of funds not required for immediate payments are
predominately comprised of government sponsored securities(all rated AAA)and certificates
of deposit,while equity securities and certificates of deposit are held by the fiduciary fund.
The County's investments and maturities at June 30,2009 are as follows:
Maturity(in years)
Fair Value Less than 1 1 —5
Tnvestments—Primary Government:
Certificates of deposit $ 92,310,326 $ 55,476,267 $36,834,059
Government sponsored securities 24,999,897 24,999,897 --
117.310,223 80.476.164 36.834.059
investments—Fiduciary Funds:
Certificates of deposit $ 1,421,046 $ 198,003 $1,223,043
Government sponsored securities -- -- --
1.421.046 198.003 $1,223,043
Equity securities L 815.560
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.
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
- 57-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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.
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets amounted to
$870,331 at June 30,2009 and consist of the following:
Primary government $233,331
Fiduciary funds 637,000
870 331
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$11,703 and$22,141,respectively,at June 30, 2009.
Restricted amounts set aside by the Kulaimano Elderly Housing Project under its loan
agreement with the Farmers Home Administration totaled$184,643 at June 30, 2009. 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$14,844 at June 30, 2009.
The Improvement District No. 17 Fund has restricted$637,000 as a bond reserve at
June 30,2009 to comply with the requirements of its Kaloko Subdivision bond issuance.
- 58 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
4. RECEIVABLES
Receivables as of June 30,2009,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:
Capital Nonmajor
General Projects Governmental
Fund Fund Funds Total
Receivables:
Real property taxes $12,941,034 $ -- $ -- $12,941,034
Accounts receivable:
Sewer -- -- 2,045,682 2,045,682
Solid waste -- -- 2,172,295 2,172,295
Capital projects -- 723,958 -- 723,958
Intergovernmental 8,251,229 9,091,346 1,185,247 18,527,822
Gross receivables 21,192,263 9,815,304 5,403,224 36,410,791
Less: allowance for
uncollectibles (1,754,090) (1,754,090)
Net total receivables $21,192,263 9 815 304 $3,649,134 $34,656,701
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 30,2009,the outstanding balance
of$3,320,754 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 $56,342
Other 2,481
Gross receivables 58,823
Less: allowance for
uncollectibles
Net total receivables 58 823
- 59-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
5. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30,2009:
Receivable Fund Payable Fund Amount
General fund Capital projects fund $ 223,908
Other governmental funds 519,424
743,332
Capital projects Fund Other governmental funds 302,647
Other governmental funds General fund 41,831
Capital projects fund 35,644
Other governmental funds 564,886
642,361
Total $1,688,340
Other governmental funds Enterprise funds
The above interfund balances result from the time lag between the dates that interfund goods
and services are provided or reimbursable expenditures occur,transactions are recorded,and
payment between funds are made.
Transfers for the fiscal year ended June 30, 2009 consisted of the following:
Transfers out:
Nonmaj or
General Governmental
Fund Funds Total
Transfers in:
Capital projects fund $ 119,807 $3,861,759 $ 3,981,566
Nonmajor governmental funds 52,714,976 -- 52,714,976
52.834.783 3.861.759 56.696.542
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.
- 60-
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30,2009 for the County was as follows:
Balance Balance
June 30, Retirements/ June 30,
2008 Additions Transfers 2009
Governmental activities:
Capital assets not being depreciated:
Land $ 28,187,574 $ 458,861 $ (1,701) $ 28,644,734
Construction work in
progress 125,041,851 62,743,166 (87,437,361) 100,347,656
Total capital assets not
being depreciated 153,229,425 63,202,027 (87,439,062) 128,992,390
Capital assets being depreciated:
Buildings and
improvements 299,254,547 13,329,303 -- 312,583,850
Equipment 97,097,037 10,941,241 (4,439,719) 103,598,559
Infrastructure 288,867,562 79,187,732 368,055,294
Total capital assets
being depreciated 685,219,146 103,458,276 (4,439,719) 784,237,703
Less accumulated depreciation for:
Buildings and
improvements (52,236,326) (4,118,100) -- (56,354,426)
Equipment (51,590,316) (6,651,898) 4,130,198 (54,112,016)
Infrastructure (125,952,480) (15,545,525) -- (141,498,005)
Total accumulated
depreciation (229,779,122) (26,315,523) 4,130,198 (251,964,447)
Total capital assets,
being depreciated,
net 455,440,024 77,142,753 (309,521) 532,273,256
Governmental
activities capital
assets,net $608,669,449 $140,344,780 ($87.748.5831 $661,265,646
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Balance Balance
June 30, Retirements/ June 30,
2008 Additions Transfers 2009
Business-type activities:
Capital assets not being depreciated:
Land $ 753,877 $ $ $ 753,877
Capital assets being depreciated:
Buildings and
improvements 1,136,008 -- -- 1,136,008
Ground and site
improvements 261,000 -- -- 261,000
Equipment 96,041 5,138 (3,244) 97,935
Total capital assets
being depreciated 1,493,049 5,1383 244 1,494,943
Less accumulated depreciation for:
Buildings and
improvements (707,819) (24,614) -- (732,433)
Ground and site
improvements (178,402) (3,755) -- (182,157)
Equipment (82,389) (5,686) 3,096 (84,979)
Total accumulated
depreciation (968,610) (34,055) 3,096 (999,569)
Total capital assets,
being depreciated,
net 524,439 (28,9171 148 495,374
Business-type
activities capital
assets,net $1,278,316 28 917 148 $1,249,251
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government $ 1,994,736
Public safety 2,319,813
Highways and streets 17,090,062
Sanitation 3,345,552
Health, education and welfare 352,523
Culture and recreation 1,212,837
Total depreciation expense—governmental activities 26.315.523
Business-type activities:
Kulaimano Elderly Housing Project $34,055
Total depreciation expense—business-type activities 34 055
7. DEFERRED REVENUE
Deferred revenue consists of the following at June 30,2009
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
Real property taxes $ 13,282,484 $ -- $ -- $ 13,282,484
Liquor control revenue 183,700 -- -- 183,700
Sewer revenue -- -- 1,164,768 1,1 64,768
Housing revenue -- -- 254,159 254,159
Solid waste revenue -- -- 1,311,117 1,311,117
Intergovernmental 2,318,052 5,536,903 -- 7,854,955
Total presented in
fund financial
statements 15,784,236 5,536,903 2,730,044 24,051,183
Less adjustments for
accrual of revenues (12,941,035) -- X2,463,887) (15,404,922)
Total government-
wide financial
statements 2,843,201 $5,536,903 266,157 8,646,261
Enterprise
Funds
Unearned rental income 4 131
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
8. LEASES
The County leases machinery and equipment under noncancellable leases expiring at various
dates through November 2014 which meet the criteria for capitalization. These capital leases
are financed from the resources of various funds.
The estimated value of the leased machinery and equipment at the inception of the capital
leases and accumulated depreciation,amounting to$13,495,247 and$5,424,834,respectively,
and the related present value of the remaining obligations under the capital leases amounting
to$4,179,805 at June 30,2009 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
$3,067,342 for the fiscal year ended June 30,2009.
The future minimum obligations under capital and operating leases at June 30,2009 are as
follows:
Governmental
Activities-
Capital Operating
Leases Leases
Year Ending June 30:
2010 $1,544,296 $2,936,527
2011 1,234,927 2,755,452
2012 1,074,222 1,647,020
2013 405,127 1,451,303
2014 139,240 909,894
2015-2019 2,398 2,987,916
2020-2022 -- 393
Total minimum lease payments 4,400,210 12.688.505
Less amount representing
interest (220,405)
Obligations under capital leases 4 179 805
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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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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 30,2009,the County recognized a liability of$12,349,000,
based on the use of 90%of the estimated capacity of the landfill. During the fiscal year
ended June 30,2009, $37,614 was spent on closure of the landfill. The remaining$1,421,161
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 2009. Actual costs at that time may be higher due to
inflation,changes in technology,or changes in regulations.
The percentage of estimated capacity used as of June 30,2009 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,
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 2009. Actual costs may be
higher due to inflation,changes in technology,or changes in regulations. Through
June 30,2009,$7,094,605 was spent on closure and postclosure care of the landfill. The
remaining estimated liability of$8,155,000 is included in the government-wide statement of
net assets. During the year ended June 30,2009, $138,258 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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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Financial Assurance For fiscal year 2009,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
General Obligation Bonds
The County issues general obligation bonds to provide funds for the acquisition and
construction of major capital facilities. These bonds have been issued by the County for the
primary government,component unit activities(see Note 14)and an improvement district.
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,
2009:
Bonds Tssue Bond Balance Bond Balance Due Within
Authorized Amount June 30,2008 Issues Retirements June 30,2009 One Year
1993 Ref&PI $86,770,000 $26,740,000 $ is 4,790,000) $21,950,000 $ 5,045,000
1999 Series A 30,000,000 1,535,000 (1,535,000)
2001 Series A 23,000,000 2,025,000 (645,652) 1,379,348 675,000
2003 Series A 36,310,000 33,400,000 (1,505,000) 31,895,000 1,550,000
2004 Series A 30,000,000 28,870,000 (1,165,000) 27,705,000 1,200,000
2004 Ref Series B 19,545,000 16,280,000 (1,735,000) 14,545,000 1,810,000
2004 Ref Series C 5,050,140 3,680,376 (479,648) 3,200,728 493,484
2004 PI Series A 2,776,400 2,706,136 (346,855) 2,359,281 39,443
2004 PT Series B 920,000 894,972 (13,341) 881,631 13,925
2004 PI Series C 191,093 1 18,027 (38,185) 79,842 39,331
2006 Series A 25,000,000 24,242,500 (797,500) 23,445,000 837,500
2007 Series A 85,000,000 85,000,000 (2,685,000) 82,315,000 2,790,000
2007 Series B 20,820,000 20,820,000 20,820,000 1,705,000
2007 Series C 10,787,388 10,787,388 10,787,388
2008 Series A 50,000,000 50,000,000 50,000,000
426,170,021 257,099,399 5(l,ll(1(1,(l(1(l (15,736,181) 291,363,218 16,198,683
.Add unamorlized
premium 5,605,017 4,588,948 184,863 (275,630) 4,498,181 280,251
Less deferred amount
on refimding (2,828,759) (2,179,799) 248,722 (1,931,077) (248,722)
$428,946,279 $259 508 548 $50,184,863 ($15.763.0891 $293.930.322 $16 230 212
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
General obligation bonds payable reported on the government-wide statement of net assets at
June 30,2009 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 $ 21,950,000
2001 Series A at 4.0%to 4.5%,due through 2010 1,379,348
2003 Series A at 2.0% to 5.125°/x,due through 2023 31,895,000
2004 Series A at 3.0%to 5.25°/x,due through 2024 27,705,000
2004 Refunding Series B at 3.5%to 5.0%,due through 2015 14,545,000
2004 Refunding Series C at 2.5%to 3.7%,due through 2014 3,200,728
2004 PI Series A at 4.75°/x,due through 2039 2,359,281
2004 PI Series B at 4.375°/x,due through 2039 881,631
2004 PI Series C at 3.0°/x,due through 2010 79,842
2006 Series A at 4.0%to 5.0°/x,due through 2026 23,445,000
2007 Series A at 4.0%to 5.0°/x,due through 2027 82,315,000
2007 Series B at 3.75%to 5.0°/x,due through 2018 20,820,000
2007 Series C at 4.0%to 5.0°/x,due through 2021 10,787,388
2008 Series A at 4.0%to 5.75°/x,due through 2028 50,000,000
Total general obligation bonds payable 291.363.218
Annual debt service requirements to maturity for the above general obligation bonds arc as
follows:
Governmental Activities
Fiscal year ending June 30: Principal Tnterest
2010 $ 16,198,683 $ 13,766,607
2011 18,615,530 12,744,016
2012 19,492,789 11,887,703
2013 20,401,566 10,968,543
2014 15,115,470 9,980,949
2015-2019 76,648,392 38,923,628
2020—2024 73,216,883 21,492,182
2025—2029 50,134,446 5,564,823
2030—2034 727,535 275,543
2035—2039 762,022 88,812
2040 49,902 1,094
Total 291363218 125.693.900
Bond Premiums
At June 30,2009, total unamortized bond premiums were$4,498,181,which are being
amortized over the remaining life of the respective bond issues.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Bonds Authorized and Unissued
The County Council has authorized the issuance of$209.6 million in general obligation bonds
to finance specified capital improvement projects. At June 30,2009, $119.6 million was not
yet issued.
Subsequent Events On October 9,2009,the County issued a$5,000,000 general
obligation bond anticipation note(Series A,Note R-1). The note carries a fixed rate of
1.25%and matures on February 25,2010. In addition,on December 3,2009,the County
Council authorized the issuance of$31,000,000 in general obligation bonds for the
Department to finance specified capital improvement projects.
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 30,2009:
Loans Approved Loan Balance Loan Balance Due Within
Authorized Amount June 30,2008 Additions Retirements June 30,2009 One Year
Hilo WWTP $12,724,311 $3,837,591 $ ($ 730,089) $3,107,502 $ 748,342
WaiakeaMill 1,300,000 462,978 (72,479) 390,499 74,291
Waiakea
Houselots 459,321 139,094 (26,462) 112,632 27,124
Waiakea
Houselots II 5,024,266 3,228,475 (257,062) 2,971,413 263,830
Ainako A&B 2,239,174 842,286 (122,364) 719,922 124,898
Kalanianaole 1,499,944 690,606 (83,548) 607,058 86,090
Kalanianaole RH 5,000,000 1,407,216 6,834 (71,387) 1,342,663 72,619
Idii Drive A&B 3,210,243 1,185,072 (183,819) 1,001,253 188,964
Idii Drive C&D 3,780,000 1,635,462 (203,973) 1,431,489 208,196
Alii Drive E&F 2,112,654 1,060,971 (118,911) 942,060 122,530
Waiaha Bay 3,697,893 1,662,691 (202,258) 1,460,433 207,921
Kealakehe 1,300,071 462,134 (72,346) 389,788 74,156
Holualoa Bay 3,080,000 1,583,614 (166,029) 1,417,585 171,081
PaukaaCCS 2,143,448 1,348,577 (108,643) 1,239,934 111,182
Cesspool
Conversion 8,908,035 7,788,575 272,711 (405,356) 7,655,930 420,046
Pahoehoe 2,817.760 2,040,844 -- (133,717) 1,907.127 137,238
$59,297,120 529.376.186 S 279.545 ($2958.443) $26.697.288 $3,038.508
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:
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
Governmental Activities
Fiscal year ending June 30: Principal Interest
2010 $3,038,508 $ 810,019
2011 3,107,840 733,752
2012 3,179,202 655,298
2013 3,252,674 569,926
2014 2,473,811 413,893
2015-2019 7,388,369 886,514
2020—2024 3,070,684 159,184
2025—2027 1,186,200 13,651
Total $26,697,288 4 242 237
Other General Long-Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30,2009:
Balance Deductions Balance Due Within
June 30,2008 Additions and Pam June 30,2009 One Year
Governmental activities:
Compensated absences $27,970,061 $13,681,933 ($11,444,897) $30,207,097 $8,278,701
Claims and judgments
(see Note 12) 19,488,411 3,928,102 (5,738,804) 17,677,709 3,611,994
Capital leases
(see Note 8) 4,606,527 1,026,166 (1,452,888) 4,179,805 1,427,134
Landfill costs payable
(see Note 9) 20,250,000 254,000 -- 20,504,000 183,380
Total $72,314,999 $18,890,201 ($18.636.5891 $72,568,611 $13,501,209
Fund Balances-Debt Service Funds
The fund balance in the debt service funds at June 30,2009 includes$21,202,480,which is
available for principal payments on general obligation bonds and$1,616,463,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
$944,124 at June 30,2009. 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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
and Urban Development Section 8 Housing Assistance Payment contract in effect for all or
part of the units within the Project.
The following is a summary of enterprise fund notes payable transactions for the fiscal year
ended June 30,2009:
Balance at June 30,2008 $970,892
Deductions (26,768)
Balance at June 30,2009 944,124
Less current portion (28,734)
Note payable,net of
current portion 915 390
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
2010 $ 28,734 $ 65,178
2011 '30,811 63,101
2012 33,038 60,874
2013 35,426 58,486
2014 37,987 55,925
2015-2019 235,320 234,240
2020—2024 333,596 135,964
2025—2027 209,212 18,895
Total 944 124 692 663
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°/x.
Total special assessment bonds payable were$2,485,000 at June 30,2009. These are not
general obligation bonds and the County is not obligated in any manner for the repayment of
these bonds. The bonds are secured by a first lien on the land benefited by the improvements,
and are to be repaid from the annual assessments levied against the owners of the land. The
County acts as an agent for the property owners within the improvement districts to collect
assessments receivable,forward payments to bond-paying agents at appropriate dates and,if
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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 30,2009:
Balance at June 30,2008 $3,200,000
Deductions (715,000)
Balance at June 30, 2009 2 485 000
The following is a summary of the annual maturities for the special assessment bonds:
Year ending June 30: Principal Interest
2010 $ 770,000 $154,875
2011 825,000 96,059
2012 890,000 32,819
Total $2,495,000 $293,75 3
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%
to 4.75°/x. Total general obligation bonds payable included in the government-wide statement
of net assets were$3,320,754 at June 30,2009.
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 30,2009:
Balance at June 30,2008 $3,719,135
Additions --
Deductions (398,381)
Balance at June 30,2009 SL 320 754
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
The following is a summary of the annual maturities for the improvement district general
obligation bonds:
Year ending June 30: Principal Interest
2010 $ 92,699 $ 151,201
2011 96,361 147,463
2012 58,449 144,196
2013 61,168 141,414
2014 64,015 138,501
2015-2019 367,628 643,843
2020—2024 461,527 547,755
2025—2029 579,446 427,087
2030—2034 727,537 275,544
2035—2039 762,021 88,812
2040 49,903 1,092
Total 3 320 754 2 706 908
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments— Contractual commitments for capital projects,expenses,and
supplies at June 30,2009,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
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
relating to curb cuts, the County,with the help of a consultant,surveyed 669 intersections,
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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.
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
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
Revised Transition Plan to satisfy the requirements of the ADA. In addition,the County's
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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 the
procedures for these requests have been finalized,but they have not been 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
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 the majority of 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 TBNR,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 TBNR are based on historical experience. The liability for claims and judgments
is reported on the government-wide statement of net assets. At June 30, 2009,the amount of
this liability was$17,677,709. This is the County's best estimate based on available
information. Changes in the reported liability since June 30, 2007 are given below.
General Workers' Total
Liability Compensation Liability
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
Incurred claims(including IBNR)* 1,346,633 2,581,469 3,928,102
Claim payments (3,157,335) (2,581,469) (5,738,804)
Balance at June 30,2009 6 446 770 11230939 $17,677,709
*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
June 30,2009
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
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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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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
benefit multiplier of 2.5%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°/x.
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 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.
The required pension contributions by the County for the years ended June 30,2009,2008,
and 2007 were$22,334,894, $18,222,311 and$16,337,218,respectively,which equal the
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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.
For employees hired after June 30, 1996,and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
years of service,the County pays 50%of the retired employees' monthly Medicare or non-
Medicare premium. For employees hired after June 30, 1996,and who retire with at least 15
years but fewer than 25 years of service,the County pays 75%of the retired employees'
monthly Medicare or non-Medicare premium. For those retiring with over 25 years of
service,the County pays the entire healthcare premium.
For employees hired after June 30,2001,and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
years of service,the County pays 50%of the retired employees' monthly Medicare or non-
Medicare premium based on the self-plan. For employees hired after June 30,2001,and who
retire with at least 15 years but fewer than 25 years of service, the County pays 75%of the
retired employees' monthly Medicare or non-Medicare premium; for those retiring with over
25 years of service,the County pays the entire healthcare premium.
For active employees, the employee's contributions are based upon negotiated collective
bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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 f6r 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
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,
2009,the amount actually contributed to the plan,and changes in the net OPEB obligation:
Annual required contribution $23,426,000
Tnterest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB Cost 23,426,000
Contributions made (24,919,803)
Increase in net OPEB obligation(asset) (1,493,803)
Net OPEB obligation(asset)-beginning of year (78,313)
Net OPEB obligation(asset)-end of year (1,572,116)
The annual OPEB cost,the percentage of annual OPEB cost contributed to the plan,and the
net OPEB obligation for the year ended June 30,2009 and the preceding year 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)
6/30/09 $23,426,000 100% ($1,572,116)
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
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
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
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
,A7vw.eutfhawaii. og_v 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
June 30,2009
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 30,2009,cash,time certificates of deposit,money market funds,and repurchase
agreements of$50,639,100,with bank balances of$51,240,952 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 are recorded as a restricted asset. Such funds amounted
to$14,132,135 at June 30,2009.
At June 30,2009,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
Notes to the Basic Financial Statements
June 30,2009
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:
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 30,2009 were as follows:
Utility plant in service $341,412,867
Less: accumulated depreciation (157,081,081)
184,331,786
Land and rights 1,714,727
Construction in progress 32,940,806
Net capital assets 218987.319
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$33,954,671
at June 30,2009.
General obligation bonds payable issued on behalf of the Department and other long-term
debt at June 30, 2009 are comprised of the following:
Public improvement bonds:
1993 Series A at 5.05%to 5.6%,due through 2013 $ 3,085,000
1998 Series A at 4.5%,due through 2033 271,500
2001 Series A at 4.0%to 5.5%,due through 2010 735,652
2004 Series D at 4.5%,due through 2039 248,635
2006 Series A at 4.0%to 5.0%,due through 2026 23,445,000
2008 Series A at 4.125°/x,due through 2043 147,000
Total public improvement bonds 27,932,787
Public improvement refunding bonds:
2004 Series at 5.0°/x,due through 2015 269,272
2007 Series at 4.0%to 5.0°/x,due through 2021 5,752,612
Total public improvement refunding bonds 6,021,884
State revolving fund loan,interest at 0.41%to 1.37%,
due through 2027 8,154,507
Total 42.109.178
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
At June 30,2009,future principal payments for long-term debt are scheduled as follows:
Fiscal year ending June 30:
2010 $ 2,518,000
2011 2,625,000
2012 2,766,000
2013 2,881,000
2014 2,121,000
2015-2019 11,613,000
2020—2024 11,381,000
2025—2029 5,922,000
2030—2034 143,000
2035—2039 94,000
2040—2043 45,178
Total $42,109,178
Contributions in Aid of Construction
Effective July 1,2000,the Department adopted GASB Statement No. 33,Accounting and
Financial Reporting far Nonexchange Transactions,which requires the Department to
recognize contributions in aid of construction as nonoperating revenues. Contributions in aid
of construction were previously recognized as contributed capital. The Department
recognized$11,246,419 of contributions in aid of construction as nonoperating revenues for
the fiscal year ended June 30,2009.
Commitments and Contingent Liabilities
Claims and judgments—The Department is self-insured for-workers' compensation and
other perils. The liability at June 30,2009 for workers' compensation claims of$245,000
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$33,664,000 at
June 30,2009.
Post-Retirement Benefits
Effective July 1,2007,the Department 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 other nonpension
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30,2009
benefits. The Department's annual required contribution for its postemployment benefit
obligation for the year ended June 30,2009 was$1,493,000. The Department made
contributions of$2,441,077 during the year ended June 30,2009 and recorded a
postemployment benefit liability of$0 at June 30,2009.
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COUNTY OF HAWAII
Required Supplementary Information
June 30,2009
Schedule of Funding Progress for the EUTF
(In thousands)
Actuarial
Accrued UAAL as a
Actuarial Liability Unfunded Percentage
Actuarial Value of (AAL)— AAL Funded Covered of Covered
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (a) (b) (b-a) (a lb) (c) ((b-a)/c)
7/01/07 - $275,828 $275,828 - $127,420 216.5%
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NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND-Used to account for the costs of maintaining the County's highways and streets.
Financing is provided primarily by fuel,motor vehicle weight and public utility franchise taxes.
SEWER FUND-Used to account for costs of operating the County's various sewerage systems. Financing
is provided by charges to users for sewer services.
SOLID WASTE FUND—Used to accumulate moneys for the operation,maintenance,and administration of
the County's solid waste management,collection and disposal systems. Financing is provided by tipping
fees at the landfills and by disposal permit fees.
CEMETERY FUND-Used to accumulate moneys to guarantee the future maintenance of County cemetery
sites. Financing is provided from the sale of burial lots in County cemeteries.
PARKING METER FUND-Used to account for the costs of maintaining County on-sweet 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.
BIKEWAYFUND-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.
GOLF COURSE FUND-Used to account for the cost of operating the Hilo Municipal Golf Course.
Funding is provided from green fees and payments from restaurant and pro shop concessionaires.
GEOTHERMAL RELOCATIONREVOLVING 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 COUNTYHOUSING AGENCY-Used to account for Federal and County moneys used to provide
public housing assistance within the County.
PARK DEDICA TION 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 set-vice 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 30,2009
Special Revenue Funds
Solid Parking
Highway Sewer Waste Cemetery Meter
Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents $10,882,557 $ 7,274,211 $10,921,668 $68,409 $142,030
Investments - - - - -
Imprest fund - 400 - - -
Receivables:
Due from other governments 46,652 - 769,284 - -
Due from other governmental funds 71,237 47,617 - - -
Due from other nongovernmental funds - 1,350 - - -
Trade,net of allowance for doubtful accounts - 1,164,768 1,299,119 - -
Other 495 - 99,987 - -
118,384 1,213,735 2,168,390 - -
Total assets $11,000,941 $ 8,488,346 $13,090,058 $68,409 $142,030
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 256,617 $ 133,600 $ 1,942,064 $ - $ -
Due to other governmental funds 387,050 5,117 489,427 - -
Unearned revenue - 1,164,768 1,311,117 - -
Accrued liabilities 1,231 92,531 1,028 - -
Total liabilities 644,898 1,396,016 3,743,636 - -
Fund balances:
Reserved for:
Encumbrances 3,857,701 1,810,009 5,246,138 - -
Debt service - - - - -
Unreserved: 6,498,342 5,282,321 4,100,284 68,409 142,030
Total fund balances 10,356,043 7,092,330 9,346,422 68,409 142,030
Total liabilities and fund balances $11,000,941 $ 8,488,346 $13,090,058 $68,409 $142,030
- 86-
Special Revenue Funds
Vehicle Workforce Golf Geomem,.l xeioc. Beauti- Park
Disposal Bikeway Investment Course &Community fication Housing Dedication
Fund Fund Act Fund Fund Benefits Fund Fund Agency Fund
$3,472,606 $507,171 $ - $ 82,304 $ 4,269,503 $ 959,935 $ 1,870,344 $ 86,587
- - - - - - 3,204,000 -
- - - 2,000 - - 200 -
- - 369,311 - - - - -
470,666 - - - - - 52,841 -
- 2,762 38,994 3,212 153,601 - 334,103 14
470,666 2,762 408,305 3,212 153,601 - 386,944 14
$3,943,272 $509,933 $ 408,305 $ 87,516 $ 4,423,104 $ 959,935 $ 5,461,488 $ 86,601
$1,154,145 $ 38,520 $ - $ 1,149 $ 3,135 $ 413 $ 72,925 $ -
- - 408,305 4,264 92,794 - - -
- - - - - - 254,159 -
- - - - - - 210,651 -
1,154,145 38,520 408,305 5,413 95,929 413 537,735 -
(44,659) 114,511 - 2,535 384,317 18,651 3,167,040 -
2,833,786 356,902 - 79,568 3,942,858 940,871 1,756,713 86,601
2,789,127 471,413 - 82,103 4,327,175 959,522 4,923,753 86,601
$3,943,272 $509,933 $ 408,305 $ 87,516 $ 4,423,104 $ 959,935 $ 5,461,488 $ 86,601
(Continued)
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COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Balance Sheet
June 30,2009
(Concluded)
Debt Service Funds Total
Bond Nonmajor
Interest Redemption Governmental
Fund Fund Funds
Assets
Cash and cash equivalents $1,688,984 $ 7,348,411 $ 49,574,720
Investments - 14,094,069 17,298,069
Imprest fund - - 2,600
Receivables:
Due from other governments - - 1,185,247
Due from other governmental funds - - 642,361
Due from other nongovernmental funds - - 1,350
Trade,net of allowance for doubtful accounts - - 2,463,887
Other - - 633,168
- - 4,926,013
Total assets $1,688,984 $21,442,480 $ 71,801,402
Liabilities and Fund Balances
Liabilities:
Accounts payable $ - $ - $ 3,602,568
Due to other governmental funds - - 1,386,957
Deferred revenue - - 2,730,044
Accrued liabilities 72,521 240,000 617,962
Total liabilities 72,521 240,000 8,337,531
Fund balances:
Reserved for:
Encumbrances - - 14,556,243
Debt service 1,616,463 21,202,480 22,818,943
Unreserved: - - 26,088,685
Total fund balances 1,616,463 21,202,480 63,463,871
Total liabilities and fund balances $1,688,984 $21,442,480 $ 71,801,402
See accompanying independent auditors'report.
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COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues,Expenditures,and Changes in Fund Balance:
For the Fiscal Year Ended June 30,2009
Special Revenue Funds
Solid Parking
Highway Sewer Waste Cemetery Meter
Fund Fund Fund Fund Fund
Revenues
Fuel tax $ 7,662,1 13 $ - $ - $ - $ -
Public utility franchise tax 1 1,1 18,365 - - - -
Licenses and permits 6,800,905 - - - -
Intergovernmental 635,709 - 922,917 - -
Charges for services - 6,012,734 9,449,283 - 14,831
Investment earnings - - - - -
Miscellaneous 777,354 - 116,381 7,750 -
Total revenues 26,994,446 6,012,734 10,488,581 7,750 14,831
Expenditures
Current:
General government - - - - -
Public safety 6,183,324 - - - -
Highways and streets 12,956,007 - - - -
Sanitation - 6,090,135 24,995,097 - -
Health,education and welfare - - - - -
Culture and recreation - - - - -
Pension and retirement contributions 1,887,902 494,660 1,032,309 - -
Employees'health insurance 698,439 186,748 466,771 - -
Miscellaneous 330,149 185,911 216,848 - -
Debt service:
Principal - - 1,21 1,189 - -
Interest - - 131,686 - -
Total expenditures 22,055,821 6,957,454 28,053,900 - -
Excess(deficiency)of revenues
over(under)expenditures 4,938,625 (944,720) (17,565,319) 7,750 14,831
Other Financing Sources(Uses)
Transfers in 18,000 - 19,150,221 - -
Increase in capital leases - - 994,080 - -
Transfers out (3,861,759) - - - -
Total other financing sources(uses) (3,843,759) - 20,144,301 - -
Net change in fund balances 1,094,866 (944,720) 2,578,982 7,750 14,831
Fund balances at beginning of year 9,261,177 8,037,050 6,767,440 60,659 127,199
Fund balances at end of year $ 10,356,043 $ 7,092,330 $ 9,346,422 $ 68,409 $142,030
- 90-
Special Revenue Funds
Vehicle Workforce Golf G.otn.,-,,,al Rao.. Beauti- Park
Disposal Bikeway Investment Course &Community fication Housing Dedication
Fund Fund Act Fund Fund Benefits Fund Fund Agency Fund
$ - $ - $ - $ - $ - $ - $ - $ -
2,028,444 76,017 - - - 169,038 - -
- - 1,026,198 - - - 14,949,390 -
1,130 - - 734,015 - - - -
- - - - - - 77,757 2,545
204,794 - - 20 941,246 - 50,056 -
2,234,368 76,017 1,026,198 734,035 941,246 169,038 15,077,203 2,545
- - - - 9,096 - - -
- - - - 12,914 - - -
- 43,551 - - 80,552 42,738 - -
2,973,403 - - - - - - -
- - 1,918,904 - - - 15,589,926 -
- - - 928,855 49,258 47,401 - -
30,011 - - 160,427 - - 493,816 -
18,376 - - 62,738 - - 145,652 -
- - - 5,588 - - - -
- - - - - - 1,800 -
- - - - - - 168 -
3,021,790 43,551 1,918,904 1,157,608 151,820 90,139 16,231,362 -
787,422) 32,466 (892,706) 423,573) 789,426 78,899 (1,154,159) 2,545
- - - 433,418 - - 1,516,860 -
- - - 433,418 - - 1,516,860 -
(787,422) 32,466 (892,706) 9,845 789,426 78,899 362,701 2,545
3,576,549 438,947 892,706 72,258 3,537,749 880,623 4,561,052 84,056
$2,789,127 $ 471,413 $ - $ 82,103 $ 4,327,175 $ 959,522 $ 4,923,753 $ 86,601
(Continued)
- 91 -
COUNTY OF HAWAII
Nonmajor Governmental Funds
Combining Statement of Revenues,Expenditures,and Changes in Fund Balance:
For the Fiscal Year Ended June 30,2009
(Concluded)
Debt Service Funds Total
Bond Nonmajor
Interest Redemption Governmental
Fund Fund Funds
Revenues
Fuel tax $ - $ - $ 7,662,1 13
Public utility franchise tax - - 1 1,1 18,365
Licenses and permits - - 9,074,404
Intergovernmental - - 17,534,214
Charges for services - - 16,211,993
Investment earnings - - 80,302
Miscellaneous - - 2,097,601
Total revenues - - 63,778,992
Expenditures
Current:
General government - - 9,096
Public safety - - 6,196,238
Highways and streets - - 13,122,848
Sanitation - - 34,058,635
Health,education and welfare - - 17,508,830
Culture and recreation - - 1,025,514
Pension and retirement contributions - - 4,099,125
Employees' health insurance - - 1,578,724
Miscellaneous - - 738,496
Debt service:
Principal - 18,296,245 19,509,234
Interest 12,640,335 - 12,772,189
Total expenditures 12,640,335 18,296,245 110,618,929
Excess(deficiency)of revenues
over(under)expenditures (12,640,335) (18,296,245) (46,839,937)
Other Financing Sources(Uses)
Transfers in 12,473,658 19,122,819 52,714,976
Increase in capital leases - - 994,080
Transfers out - - (3,861,759)
Total other financing sources(uses) 12,473,658 19,122,819 49,847,297
Net change in fund balances (166,677) 826,574 3,007,360
Fund balances at beginning of year 1,783,140 20,375,906 60,456,511
Fund balances at end of year $ 1,616,463 $ 21,202,480 $63,463,871
See accompanying independent auditors'report.
- 92-
COUNTY OF HAWAII
Highway Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Taxes:
Fuel tax $ 8,793,000 $8,793,000 $ 7,662,113 $ (1,130,887)
Public utility franchise tax 9,121,000 9,121,000 11,118,365 1,997,365
Total taxes 17,914,000 17,914,000 18,780,478 866,478
Licenses and permits-motor vehicle weight taxes 7,034,636 7,034,636 6,800,905 (233,731)
Intergovernmental 320,774 320,774 635,709 314,935
Charges for current services 200,000 200,000 632,632 432,632
Miscellaneous 120,837 120,837 144,722 23,885
Total revenues 25,590,247 25,590,247 26,994,446 1,404,199
Expenditures:
Public safety-traffic engineering 6,595,867 6,935,867 6,291,448 644,419
Highways and streets 11,165,669 11,586,364 10,704,339 882,025
Highways and streets-mass transit 1,177,480 2,002,179 1,942,972 59,207
Pension and retirement contributions 2,047,720 2,047,720 1,887,902 159,818
Health fund 814,227 814,227 698,439 115,788
Miscellaneous 1,323,545 1,323,545 318,782 1,004,763
Total expenditures 23,124,508 24,709,902 21,843,882 2,866,020
Excess of revenues over expenditures 2,465,739 880,345 5,150,564 4,270,219
Other financing uses-transfers in(out)-
General Fund - 18,000 18,000 -
Capital Projects Fund (4,349,067) (4,349,067) (3,861,759) 487,308
Total other financing uses (4,349,067) (4,331,067) (3,843,759) 487,308
Excess(deficiency)of revenues over(under)
expenditures and other uses (1,883,328) (3,450,722) 1,306,805 4,757,527
Fund balance at beginning of year 9,261,177 9,261,177 9,261,177 -
Fund balance at end of year $ 7,377,849 $5,810,455 $ 10,567,982 $ 4,757,527
See accompanying independent auditors'report.
- 9J -
COUNTY OF HAWAII
Sewer Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Charges for current services-sewer fees $ 7,383,000 $ 7,383,000 $ 6,012,734 $ (1,370,266)
Miscellaneous 200 200 -- (200)
Total revenues 7,383,200 7,383,200 6,012,734 (1,370,466)
Expenditures:
Sanitation 7,812,844 7,710,644 6,330,975 1,379,669
Pension and retirement contributions 593,199 593,199 494,660 98,539
Health fund 235,708 235,708 186,748 48,960
Miscellaneous 2,996,691 3,098,891 117,383 2,981,508
Total expenditures 11,638,442 11,638,442 7,129,766 4,508,676
Deficiency of revenues under expenditures (4,255,242) (4,255,242) (1,1 17,032) 3,138,210
Fund balance at beginning of year 8,037,050 8,037,050 8,037,050 -
Fund balance at end of year $ 3,781,808 $ 3,781,808 $ 6,920,018 $ 3,138,210
See accompanying independent auditors'report.
- 94-
COUNTY OF HAWAII
Solid Waste Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Intergovernmental $1,163,309 $2,272,500 $1,232,225 $(1,040,275)
Charges for services-tipping fees 10,614,000 10,614,000 9,449,283 (1,164,717)
Miscellaneous - 101,500 116,381 14,881
Total revenues 11,777,309 12,988,000 10,797,889 (2,190,111)
Expenditures:
Sanitation 31,715,337 32,928,528 27,360,608 5,567,920
Pension and retirement contributions 1,295,642 1,295,642 1,032,309 263,333
Health fund 640,344 640,344 466,771 173,573
Miscellaneous 320,000 320,000 212,297 107,703
Total expenditures 33,971,323 35,184,514 29,071,985 6,112,529
Deficiency of revenues under expenditures (22,194,014) (22,196,514) (18,274,096) 3,922,418
Other financing sources:
Transfers in-General Fund 19,147,721 19,150,221 19,150,221 -
Excess(deficiency)of revenues and other
sources over(under)expenditures (3,046,293) (3,046,293) 876,125 3,922,418
Fund balance at beginning of year 6,767,440 6,767,440 6,767,440 -
Fund balance at end of year $3,721,147 $3,721,147 $7,643,565 $ 3,922,418
See accompanying notes to the basic financial statements.
- 95 -
COUNTY OF HAWAII
Cemetery Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-miscellaneous-sale of cemetery plots $ 10,000 $ 10,000 $ 7,750 $ (2,250)
Expenditures-health,education and welfare 10,000 10,000 - 10,000
Excess of revenues over expenditures - - 7,750 7,750
Fund balance at beginning of year 60,659 60,659 60,659 -
Fund balance at end of year $ 60,659 $ 60,659 $ 68,409 $ 7,750
See accompanying independent auditors'report.
- 96-
COUNTY OF HAWAII
Parking Meter Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-
Charges for current services-highways and streets $ - $ - $ 14,831 $ 14,831
Expenditures-
Highways and streets - - - -
Excess of revenues over expenditures - - 14,831 14,831
Fund balance at beginning of year 127,199 127,199 127,199 -
Fund balance at end of year $ 127,199 $127,199 $ 142,030 $ 14,831
See accompanying independent auditors'report.
- 97-
COUNTY OF HAWAII
Vehicle Disposal Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Licenses and permits-vehicle disposal fee $2,124,000 $2,124,000 $2,028,444 $ (95,556)
Charges for services-towing charges - - 1,130 1,130
Miscellaneous - - 204,794 204,794
Total revenues 2,124,000 2,124,000 2,234,368 110,368
Expenditures:
Sanitation 3,478,429 3,478,429 2,664,275 814,154
Pension and retirement contributions 34,000 34,000 30,011 3,989
Health fund 20,700 20,700 18,376 2,324
Miscellaneous 10,000 10,000 -- 10,000
Total expenditures 3,543,129 3,543,129 2,712,662 830,467
Deficiency of revenues under expenditures (1,419,129) (1,419,129) (478,294) 940,835
Fund balance at beginning of year 3,576,549 3,576,549 3,576,549 -
Fund balance at end of year $2,157,420 $2,157,420 $3,098,255 $ 940,835
See accompanying independent auditors'report.
- 98 -
COUNTY OF HAWAII
Bikeway Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Original Actual Variance
and Final (Budgetary Positive
Budget Basis) (Negative)
Revenues-licenses and permits-
bicycle tax $ 20,000 $ 76,017 $ 56,017
Expenditures-highways and streets 171,000 154,755 16,245
Deficiency of revenues under expenditures (151,000) (78,738) 72,262
Fund balance at beginning of year 438,947 438,947 -
Fund balance at end of year $287,947 $360,209 $72,262
See accompanying independent auditors'report.
- 99-
COUNTY OF HAWAII
Workforce investment Act Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-intergovernmental-federal grants $ - $ 3,308,557 $ 3,308,557 $ -
Expenditures-health,education and welfare - 3,308,557 3,308,557 -
Excess of revenues over expenditures - - - -
Fund balance at beginning of year 892,706 892,706 892,706 -
Fund balance at end of year $ 892,706 $ 892,706 $ 892,706 $ -
See accompanying independent auditors'report.
- 100-
COUNTY OF HAWAII
Golf Course Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Charges for services $ 768,103 $768,103 $734,015 $ (34,088)
Miscellaneous - - 20 20
Total revenues 768,103 768,103 734,035 (34,068)
Expenditures:
Culture and recreation 943,052 943,052 893,935 49,117
Pension and retirement contributions 162,369 162,369 160,427 1,942
Health fund 80,000 80,000 62,738 17,262
Miscellaneous 16,100 16,100 5,588 10,512
Total expenditures 1,201,521 1,201,521 1,122,688 78,833
Deficiency of revenues under expenditures (433,418) (433,418) (388,653) 44,765
Other financing sources:
Transfers in-General Fund 433,418 433,418 433,418 -
Excess of revenues and other sources
over expenditures - - 44,765 44,765
Fund balance at beginning of year 72,258 72,258 72,258 -
Fund balance at end of year $ 72,258 $ 72,258 $ 117,023 $ 44,765
See accompanying independent auditor'report.
- 101 -
COUNTY OF HAWAII
Geothermal Relocation and Community Benefits Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-miscellaneous-geothermal royalties $ 350,000 $ 350,000 $ 941,246 $ 591,246
Expenditures:
General government-finance -- 13,413 13,413 -
General government-planning 350,000 350,000 -- 350,000
Public safety-traffic engineering -- 24,000 12,914 11,086
Highways and streets-mass transit -- 496,250 460,552 35,698
Culture and recreation -- 83,014 49,258 33,756
Total expenditures 350,000 966,677 536,137 430,540
Excess(deficiency)of revenues over(under)
expenditures - (616,677) 405,109 1,021,786
Fund balance at beginning of year 3,537,749 3,537,749 3,537,749 -
Fund balance at end of year $ 3,537,749 $ 2,921,072 $ 3,942,858 $ 1,021,786
See accompanying independent auditor'report.
- 102-
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 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-licenses and permits-highway
beautification $169,000 $169,000 $ 169,038 $ 38
Expenditures-highways and streets 225,000 225,000 77,897 147,103
Excess(deficiency)of revenues over(under)
expenditures (56,000) (56,000) 91,141 147,141
Fund balance at beginning of year 880,623 880,623 880,623 -
Fund balance at end of year $824,623 $824,623 S 971,764 $ 147,141
See accompanying independent auditors'report.
- 103 -
COUNTY OF HAWAII
Hawaii County Housing Agency
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Intergovernmental-
Federal-HUD-Voucher program $13,984,938 $14,684,938 $14,934,667 $ 249,729
Other 47,874 47,874 14,723 (33,151)
Interest earned 60,000 60,000 77,757 17,757
Resale of property - - 50,000 50,000
Other - - 56 56
Total revenues 14,092,812 14,792,812 15,077,203 284,391
Expenditures:
Health,education and welfare 15,236,727 15,951,727 15,494,502 457,225
Pension and retirement contributions 577,600 577,600 493,816 83,784
Health Fund 158,300 158,300 145,652 12,648
Miscellaneous -- -- - --
Total expenditures 15,972,627 16,687,627 16,133,970 553,657
Deficiency of revenues over expenditures (1,879,815) (1,894,815) (1,056,767) 838,048
Other financing sources:
Transfers in-General Fund 1,501,860 1,516,860 1,516,860 -
Excess(deficiency)of revenues and other
sources over(under)expenditures (377,955) (377,955) 460,093 838,048
Fund balance at beginning of year 4,561,052 4,561,052 4,561,052 -
Fund balance at end of year $ 4,183,097 $ 4,183,097 $ 5,021,145 $ 838,048
See accompanying independent auditors'report.
- 104-
COUNTY OF HAWAII
Park Dedication Fund
Schedule of Revenues,Expenditures and Changes in Fund Balance-
Budget and Actual(Budgetary Basis)
For the Fiscal Year Ended June 30,2009
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues-interest $ - $ - $ 2,545 $ 2,545
Expenditures-culture and recreation - - - -
Excess of revenues over expenditures - - 2,545 2,545
Fund balance at beginning of year 84,056 84,056 84,056 -
Fund balance at end of year $84,056 $84,056 $86,601 $2,545
See accompanying independent auditors'report.
- 105 -
COUNTY OF HAWAII
Agency Funds
Combining Balance Sheet
June 30,2009
Performance
State Improvement Improvement Improvement and
Weight District District District Refundable
Tax No. 17 No. 18 Revolving Deposits
Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents $893,742 $ 682,499 $ 88,601 $ 400,592 $ 320,330
Investments - - 1,421,046 - -
Due from other agency funds - - - - -
Other receivables - 208,241 1,818 69 -
Restricted assets-
cash and cash equivalents - 637,000 - - -
Total assets $893,742 $ 1,527,740 $ 1,511,465 $ 400,661 $ 320,330
Liabilities
Due to other agency funds $ - $ - $ - $ - $ 860
Accrued liabilities 893,742 212,404 4,989 - 2,095
Customer advances and deposits - 1,605 6,654 - 317,375
Assets held for the benefit of
improvement districts - 1,313,731 1,499,822 400,661 -
Total liabilities $893,742 $ 1,527,740 $ 1,511,465 $ 400,661 $ 320,330
See accompanying independent auditors'report.
- 106-
Non-Profit Organ and Business
Payroll Flexible Lapsed License Tissue Improvement
Clearance Spending Warrants Plates Education District
Fund Account Fund Fund Fund 1 -Kailua Total
$ 1,844,870 $374,346 $ 154,225 $ 1,390 $ 398 $ 229 $ 4,761,222
- - - - - - 1,421,046
- - 1,082 - - - 1,082
13,929 - 13,863 - - 25,407 263,327
- - - - - - 637,000
$ 1,858,799 $374,346 $ 169,170 $ 1,390 $ 398 $ 25,636 $ 7,083,677
$ 122 $ - $ - $ 100 $ - $ - $ 1,082
1,858,677 374,346 169,170 1,290 398 3,113 3,520,224
- - - - - 325,634
- - - - - 22,523 3,236,737
$ 1,858,799 $374,346 $ 169,170 $ 1,390 $ 398 $ 25,636 $ 7,083,677
-
107 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2009
Balance Balance
July 1, June 30,
2008 Additions Deductions 2009
State Weight Tax Fund
Assets
Cash and cash equivalents $ (189) $ 10,270,757 $ 9,376,826 $ 893,742
Misc.Receivables-due from State of Hawaii $ 189 $ - $ 189 -
Total assets $ - $ 10,270,757 $ 9,377,015 $ 893,742
Liabilities
Vouchers payable $ - $ 9,376,827 $ 9,376,827 $ -
Accrued liabilities-due to State of Hawaii - 10,270,757 9,377,015 893,742
Total liabilities $ - $ 19,647,584 $ 18,753,842 $ 893,742
Improvement District No.17 Fund
Assets
Cash and cash equivalents $ 840,004 $ 782,257 $ 939,762 $ 682,499
Restricted assets-cash and cash equiv. 637,000 - - 637,000
Other receivables 33,775 950,148 775,682 208,241
Total assets $1,510,779 $ 1,732,405 $ 1,715,444 $1,527,740
Liabilities
Vouchers payable $ - $ 1,690 $ 1,690 $ -
Accrued liabilities 38,254 945,398 771,248 212,404
Customer advances and deposits - 1,605 - 1,605
Assets held for the benefit
of improvement districts 1,472,525 771,920 930,714 1,313,731
Total liabilities $1,510,779 $ 1,720,613 $ 1,703,652 $1,527,740
- 108 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2009
Balance Balance
July 1, June 30,
2008 Additions Deductions 2009
Improvement District No.18 Fund
Assets
Cash and cash equivalents $ 368,444 $ 506,272 $ 786,115 $ 88,601
Investments 1,241,244 179,802 - 1,421,046
Other receivables 10,199 418,003 426,384 1,818
Total assets $1,619,887 $ 1,104,077 $ 1,212,499 $1,511,465
Liabilities
Vouchers payable $ - $ 49,964 $ 49,964 $ -
Accrued liabilities 13,701 842,349 851,061 4,989
Customer advances and deposits - 6,654 - 6,654
Assets held for the benefit
of improvement districts 1,606,186 478,010 584,374 1,499,822
Total liabilities $1,619,887 $ 1,376,977 $ 1,485,399 $1,511,465
Improvement District Revolving Fund
Assets
Cash and cash equivalents $ - $ 400,592 $ - $ 400,592
Investments 388,886 - 388,886 -
Other receivables - 69 - 69
Total assets $ 388,886 $ 400,661 $ 388,886 $ 400,661
Liabilities
Assets held for the benefit
of improvement districts $ 388,886 $ 11,775 $ - $ 400,661
Performance and Refundable
Deposits Fund
Assets
Cash and cash equivalents $ 229,702 $ 482,233 $ 391,605 $ 320,330
Other receivables 2,029 50 2,079 -
Total assets $ 231,731 $ 482,283 $ 393,684 $ 320,330
Liabilities
Vouchers payable $ - $ 377,524 $ 377,524 $ -
Due to other agency funds 1,945 860 1,945 860
Accrued liabilities - 2,095 - 2,095
Customer advances and deposits 229,786 705,285 617,696 317,375
Total liabilities $ 231,731 $ 1,085,764 $ 997,165 $ 320,330
- 109-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2009
Balance Balance
July 1, June 30,
2008 Additions Deductions 2009
Payroll Clearance Fund
Assets
Cash and cash equivalents $1,718,871 $218,634,233 $218,508,234 $1,844,870
Due from other funds - 213,132,799 213,132,799 -
Other receivables - 13,929 - 13,929
Total assets $1,718,871 $431,780,961 $431,641,033 $1,858,799
Liabilities
Vouchers payable $ - $ 97,618,881 $ 97,618,881 $ -
Payroll refunds payable - - - -
Due to other agency funds 444 122 444 122
Accrued liabilities 1,718,427 260,144,170 260,003,920 1,858,677
Total liabilities $1,718,871 $357,763,173 $357,623,245 $1,858,799
Flexible Spending Account
Assets
Cash and cash equivalents $ 355,777 $ 408,935 $ 390,366 $ 374,346
Liabilities
Accrued liabilities $ 355,777 $ 408,935 $ 390,366 $ 374,346
Lapsed Warrants Fund
Assets
Cash and cash equivalents $ 128,431 $ 26,100 $ 306 $ 154,225
Due from other agency funds 2,409 1,082 2,409 1,082
Other receivables 23,691 13,863 23,691 13,863
Total assets $ 154,531 $ 41,045 $ 26,406 $ 169,170
Liabilities
Vouchers payable $ - $ 246 $ 246 $ -
Accrued liabilities 154,531 42,693 28,054 169,170
Total liabilities $ 154,531 $ 42,939 $ 28,300 $ 169,170
- 110-
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2009
Balance Balance
July 1, June 30,
2008 Additions Deductions 2009
Non-Profit License Plates Fund
Assets
Cash and cash equivalents $ 1,285 $ 5,000 $ 4,895 $ 1,390
Liabilities
Vouchers payable $ - $ 4,875 $ 4,875 $ -
Due to other agency funds 20 100 20 100
Accrued liabilities - 40 - 40
Due to non-profit agency 1,265 4,900 4,915 1,250
Total liabilities $ 1,285 $ 9,915 $ 9,810 $ 1,390
Organ and Tissue Education Fund
Assets
Cash and cash equivalents $ 447 $ 57,369 $ 57,418 $ 398
Liabilities
Vouchers payable $ - $ 1,669 $ 1,669 $ -
Accrued liabilities-due to State of Hawaii 447 57,369 57,418 398
Total liabilities $ 447 $ 59,038 $ 59,087 $ 398
Business Improvement District 1-Kailua
Assets
Cash and cash equivalents $ 12,582 $ 847,771 $ 860,124 $ 229
Misc.Receivables-BID 1-Kailua Assessment 8,800 869,457 855,735 22,522
Misc.Receivable-Due from KVBID 5,000 - 5,000 -
Other receivables 98 8,654 5,867 2,885
Total assets $ 26,480 $ 1,725,882 $ 1,726,726 $ 25,636
Liabilities
Vouchers payable $ - $ 859,376 $ 859,376 $ -
Due to KVBID 12,702 3,113 12,702 3,113
Due to other agency funds 4,978 - 4,978 -
Assets held for the benefit
of improvement districts 8,800 858,478 844,755 22,523
Total liabilities $ 26,480 $ 1,720,967 $ 1,721,811 $ 25,636
- 111 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2009
Balance Balance
July 1, June 30,
2008 Additions Deductions 2009
Total-All Agency Funds
Assets
Cash and cash equivalents $3,655,354 $232,421,519 $231,315,651 $4,761,222
Investments 1,630,130 179,802 388,886 1,421,046
Due from other agency funds 2,409 1,082 2,409 1,082
Misc.Receivables-due from State of Hawaii 189 - 189 -
Misc.Receivables-BTD 1-Kailua Assessment 8,800 869,457 855,735 22,522
Misc.Receivable-Due from KVBID 5,000 - 5,000 -
Other receivables 69,792 1,404,716 1,233,703 240,805
Restricted assets-cash and cash equiv. 637,000 - - 637,000
Total assets $6,008,674 $234,876,576 $233,801,573 $7,083,677
Liabilities
Vouchers payable $ - $108,291,052 $108,291,052 $ -
Payroll refunds payable - - - -
Due to other agency funds 7,387 1,082 7,387 1,082
Due to non-profit agency 1,265 4,900 4,915 1,250
Accrued liabilities 2,280,690 262,385,680 262,044,649 2,621,721
Accrued liabilities-due to State of Hawaii 447 10,328,126 9,434,433 894,140
Due to KVBTD 12,702 3,113 12,702 3,113
Customer advances and deposits 229,786 713,544 617,696 325,634
Assets held for the benefit
of improvement districts 3,476,397 2,120,183 2,359,843 3,236,737
Total liabilities $6,008,674 $383,847,680 $382,772,677 $7,083,677
See accompanying independent auditors'report.
- 112-
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Assets
June 30, 2009
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Assets Fund Fund Trusts
Cash and cash equivalents $ 2,003,659 $ 1,860,505 $ 3,864,164
Investments - 815,560 815,560
Receivables 342 307 649
Total assets 2,004,001 2,676,372 4,680,373
Liabilities
Accrued liabilities - - -
Totalliabilities - - -
Net Assets
Held in trust for other parties 2,004,001 2,676,372 4,680,373
Total net assets $ 2,004,001 $ 2,676,372 $ 4,680,373
See accompanying independent auditors'report.
- 113 -
COUNTY OF HAWAII
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Assets
For the Fiscal Year Ended June 30, 2009
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Fund Fund Trusts
Additions
Contributions:
Puna Geothermal Venture $ 50,000 $ - $ 50,000
Investment earnings:
Net decrease in fair value of investments - (156,886) (156,886)
Dividends - 49,705 49,705
Interest 57,652 18,237 75,889
Total additions 107,652 (88,944) 18,708
Deductions
Grant payments - 90,604 90,604
Total deductions - 90,604 90,604
Change in net assets 107,652 (179,548) (71,896)
Net assets,beginning of year 1,896,349 2,855,920 4,752,269
Net assets,end of year $ 2,004,001 $ 2,676,372 $4,680,373
See accompanying independent auditor'report.
STATISTICAL SECTION
(UNAUDITED)
Contents Page
Financial Trends—These schedules contain trend information to help help the reader understand
how the County's financial performance and well-being have changed over time. 115
Revenue Capacity—These schedules contain information to help the reader assess the County's
most significant local revenue source,the property tax. 119
Debt Capacity—These schedules present information to help the reader assess the affordability
of the County's current levels of outstanding debt and the County's ability to issue additional
debt in the future. 125
Demographic and Economic Information—These schedules offer demographic and economic
indicators to help the reader understand the environment within which the County's financial
actiivities take place. 128
Operating Information—These schedules contain service and infrastructure data to help the
reader understand how the information in the County's financial report relates to the services
provided and the activities performed by the County. 130
Table 1
COUNTY OF HAWATT
Net Assets by Component
Last Six Fiscal Yeas
Fiscal Year
2004 2005 2006 2007 2008 2009
Governmental activities
Invested in capital assets,net of related debt $ 336,435,768 $ 364,662,377 $ 386,861,296 $ 394,789,635 $ 419,174,559 $ 419,615,479
Restricted 37,333,730 41,950,262 44,737,588 54,857,023 66,977,935 63,408,379
Unrestricted (10,384,644) (11,741,743) 8,885,911 21,350,091 27,329,104 42,457,132
Total governmental activities net assets $ 363,384,854 $ 394,870,896 $ 440,484,795 $ 470,996,749 $ 513,481,598 $ 525,480,990
Business-type activities
Invested in capital assets,net of related debt $ 324,942 $ 325,800 $ 317,534 $ 310,409 $ 307,424 S 305,127
Restricted 180,782 182,167 182,797 183,832 184,352 184,643
Unrestricted 873,704 850,962 813,431 636,756 608,195 609,798
Total business-typc activities net assets $ 1,379,428 $ 1,358,929 $ 1,313,762 $ 1,130,997 $ 1,099,971 S 1,099,568
Primary government
Invested in capital assets,net of related debt $ 336,760,710 $ 364,988,177 $ 387,178,830 $ 395,100,044 $ 419,481,983 S 419,920,606
Restricted 37,514,512 42,132,429 44,920,385 55,040,855 67,162,287 63,593,022
Unrestricted (9,510,940) (10,890,781) 9,699,342 21,986,847 27,937,299 43,066,930
Total primary government net assets $ 364,764,282 $ 396,229,825 $ 441,798,557 $ 472,127,746 $ 514,581,569 S 526,580,558
Unaudited-see accompanying independent auditors'report.
Table 2
COUNTY OF HAWAII
Changes in Net Assets
Last Six Fiscal Yeats
Fiscal Year
2004 2005 2006 2007 2008 2009
Program Revenues
Governmental activities:
Charges for services:
General government $ 1,947,554 $ 3,227,420 S 4,032,542 $ 4,460,016 $ 6,017,819 $ 5,442,950
Public safety 5,061,174 6,262,259 6,975,962 5,798,126 5,843,733 4,846,834
Highways and streets 6,052,544 7,629,139 9,079,084 9,354,639 9,701,815 9,636,799
Health,education and welfare 884,075 1,272,091 980,147 799,075 754,758 532,832
Culture and recreation 1,588,945 1,521,127 1,439,784 1,634,008 1,595,409 1,557,597
Sanitation 13,653,722 15,465,478 16,469,745 18,486,502 18,643,952 16,415,985
Operating grants and contributions 33,327,191 36,370,993 38,252,889 38,068,138 46,117,399 42,273,795
Capital grants and contributions 9,668,981 26,221,627 14,801,828 7,805,986 9,327,408 15,728,186
Total governmental activates program revenues 72,184,186 97,970,134 92,031,981 86,406,490 98,002,293 96,434,978
Business-type activities:
Charges for services:
Health,education and welfare $ 303,047 $ 314,971 S 338,141 $ 345,802 $ 365,655 $ 371,511
Operating grants,and contributions 143,769 135,829 141,019 134,211 125,795 135,674
Total business-type activities program revenues 446,816 450,800 479,160 480,013 491,450 507,185
Total primary grovernment program revenues $ 72,631,002 $ 98,420,934 S 92,511,141 $ 86,886,503 $ 98,493,743 S 96,942,163
Expenses
Governmental activities:
General government $ 40,085,357 $ 51,262,329 S 38,264,132 $ 46,349,904 $ 68,794,961 $ 69,968,534
Public safety 90,434,696 94,422,057 106,067,466 118,010,316 137,500,608 144,755,837
Highways mud streets 17,563,608 20,857,341 24,783,476 28,185,968 33,577,707 36,466,541
Health,education and welfare 23,041,963 21,503,635 20,181,685 23,203,874 14,986,972 33,783,223
Cultureandrecreation 15,979,854 16,124,457 19,464,962 26,948,501 20,450,172 32,633,418
Sanitation 20,084,654 26,669,660 27,265,515 42,682,281 41,254,728 40,191,704
Interest on Iona term debt 9,553,966 8,718,758 10,168,710 10,303,332 13,117,325 13,914,969
Total governmental activities expenses 216,744,098 239,558,237 246,195,946 295,684,176 329,682,473 371,714,226
Business-type activities:
Health,education and welfare 466,143 484,879 547,201 698,329 556,304 525,449
Total business-type activities expenses 466,143 484,879 547,201 698,329 556,304 525,449
Total primary,government expenses $217,210,241 $240,043,116 S 246,743,147 $296,382,505 $330,238,777 S 372,239,675
Net Expense
Governmental activities $(144,559,912) $(141,588,103) S(154,163,965) $(209,277,686) $(231,680,180) S(275,279,248)
Business-type activities (19,327) (34,079) (68,041) (218,316) (64,854) (18,264)
Total primary government net expense $(144,579,239) $(141,622,182) S(154,23 2,006) $(209,496,002) $(231,745,034) 5(275,297,512)
General Revenues and Other Changes in Net Assets
Governmental activities:
General revenues:
Property taxes $119,864,237 $129,775,410 S 152,182,806 $183,611,050 $210,217,690 S 229,262,980
Public service company taxes 5,332,478 6,351,273 6,811,483 7,396,084 8,381,367 10,228,607
Franchise taxes 5,373,144 6,016,890 7,328,887 8,520,133 9,026,841 11,118,365
Fuel taxes 7,552,317 7,580,740 7,857,394 8,471,453 7,887,998 7,662,113
Grants and contributions not restricted to
specific programs 15,251,443 16,734,850 18,510,262 18,999,596 19,395,089 17,888,019
Investment earnings 1,729,531 2,957,188 4,976,178 9,727,911 11,454,850 8,369,221
Miscellaneous 4,825,259 3,657,794 2,110,854 3,063,413 7,801,194 2,749,335
Total governmental activities 159,928,409 173,074,145 199,777,864 239,789,640 274,165,029 287,278,640
Business-type activities:
General revenues:
Investment earnings 8,006 13,580 22,874 35,551 33,828 17,861
Total business-type activities 8,006 13,580 22,874 35,551 33,828 17,861
Total primary government $ 159,936,415 $ 173,087,725 S 199,800,738 $239,825,191 $274,198,857 $287,296,501
Changes In Net Assets
Governmental activities $ 15,368,497 $ 31,486,042 S 45,613,899 $ 30,511,954 $ 42,484,849 S 11,999,392
Business-type activities (11,321) (20,499) (45,167) (182,765) (31,026) (403)
Total primary government changes in net assets $ 15,357,176 $ 31,465,543 S 45,568,732 $ 30,329,189 $ 42,453,823 S 1 1,998,989
Unaudited-secacarmpanying indgrcndcnt auditor;r l L.
-116-
Table 3
COUNTY OF HAWATT
Fund Balances,Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
Fiscal Ycar
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
General Fund:
Reserved S 8,453,114 S 6,504,144 $ 5,717,010 $ 7,062,628 $ 7,452,338 $ 8,313,800 $ 11,519,135 S 15,659,683 S 17,468,606 $ 14,974,272
Unreserved 16,100,985 8,310,689 3,831,680 9,093,877 12,270,870 15,664,272 23.446,072 28,950,66% 31,401,745 44,603,975
Total general fund 24,554,099 14,814,833 9,548,6911 16,156,5(15 19,723,208 23,978,1172 34,965,2117 44,6111,351 48,870,351 59,578,247
All other Gavernmein Funds:
Reserved 44,082,610 41,176,191 44,711,572 58,714,024 66,991,733 66,720,836 103.359,563 123,060,550 141,972,067 177,995,184
U—ceved,reported in
Special rcvcnuc fund 8,681,266 10,684,577 12,670,179 14,336,385 15,151,534 18,525,727 20,342,112 24,874,744 24,553,386 26,088,685
Capital projects ford 21,024,738 14,756,678 21,179,311 38,966,(62 32,293,518 64,915,483 48,345,X38 95,684,215 39,116,365 (20,101,369)
Total ofotl-governmental Smds 73,788,614 66,617.446 78,561,062 112,017,061 114,436,785 150,162,046 172,047,513 242,619,509 205,641.8 IS 183,982,500
Total Fund Balances S 98,342,713 581,432,279 ,$8X,109,752 $12X,173,566 $134,159,993 $174,140,1 IX $207.012,720 5287,229,860 S 254,5 12,169 ,$243,560,747
Unaudited-see a—orp; pog in dependent audAn's report.
Table 4
COUNTY OF HAWAII
Changes in Fund Balances,Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
(Amounts in thousands)
Fiscal Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Revenues:
Property tax $83,271 $ 84,240 S 93,712 $109,991 $121,868 S 131,087 $153,207 $181,446 $208,313 $225,858
Public service company tax - - 5,108 5,064 5,332 6,351 6,812 7,396 8,381 10,229
Fuel tax 6,103 6,450 6,422 7,343 7,552 7,581 7,857 8,471 7,888 7,662
Public utility franchise lax 3,950 4,777 4,993 4,817 5,373 6,017 7,329 8,520 9,027 11,118
Licenses and permits 7,261 7,412 7,781 9,261 11,840 14,442 16,544 16,269 15,918 14,972
Intergovernmental 38,383 55,034 68,918 65,203 58,559 73,372 69,637 63,599 72,601 70,869
Charges for services 11,215 12,056 11,689 13,481 14,467 18,149 19,852 21,685 22,154 21,404
Investment earnings 5,284 6,409 3,801 2,066 1,806 3,104 5,223 10,291 12,144 8,914
Miscellaneous 2,416 2,529 3,035 6,179 4,718 4,450 4,380 5,073 7,151 5,690
Total Revenues 157,883 178,907 205,459 223,405 231,515 264,553 290,841 322,750 363,577 376,716
Expenditures:
Current:
G,,c,al gov,nmcnt 21,442 22,073 20,192 22,317 23,070 26,183 31,153 37,652 42,991 45,882
Public safety 58,395 59,391 61,870 64,667 69,117 76,404 83,591 93,241 103,617 107,540
Highways and sticcts 8,006 9,998 8,376 8,675 9,542 9,787 12,608 14,033 19,529 17,159
Sanitation 12,856 13,481 14,789 16,629 17,602 21,883 26,565 31,817 33,405 35,025
Health,education and welfare 5,079 8,344 16,726 18,867 19,047 19,870 19,050 21,470 24,609 24,596
Culture and recreation 11,526 12,085 12,127 13,086 13,169 13,982 14,731 17,118 18,179 18,853
Pension and retirement contributions 5,641 3,679 11,019 7,926 11,081 14,204 19,937 21,796 24,296 28,870
Employees health insurance 9,544 10,773 12,198 12,758 14,256 16,168 16,133 16,941 18,089 19,119
Other post employmnet benefits - - - - - - - - 13,629 14,950
Miscellaneous 4,224 4,040 5,330 5,629 7,128 6,133 6,780 5,108 5,344 6,257
Debt service:
Principal 8,862 9,399 10,025 11,800 12,826 13,150 14,060 16,076 16,548 19,749
interest 7,759 8,416 8,467 8,469 9,283 9,534 9,914 9,894 13,116 12,790
Capital outlay 21,909 37,648 41,580 32,952 23,474 32,816 30,588 52,285 70,156 89,368
Total Expenditures 175,243 199,327 222,699 223,775 229,595 260,114 285,110 337,431 403,508 440,158
Revenues over(under)Expenditures (17,360) (20,420) (17,240) (370) 1,920 4,439 5,731 (14,681) (39,931) (63,442)
Other Financing Sources(Uses):
Sale of assets 28 16 15 9 1,593 1,486 82 5 3,470 58
Capital lease,; 2,677 23 930 1,353 1,474 1,369 404 2,403 2,187 1,026
State Revolving Fund loans 5,530 3,422 578 853 - 1,504 25 6,255 1,916 280
Sale of bonds 29,878 - 15,175 37,262 1,725 30,000 25,000 85,000 - 50,000
RcRanding bonds 18,776 - - - - 24,595 - 31,607 - -
Premium on bonds - - - - - 3,025 972 3,099 - 185
RcRandinv bonds issuance costs - - - - - (129) - (218) - -
Pavmcnt to refunded bond escrow agent (18,776) - - - - (25,885) - (32,699) - -
Refund to lot owner, - - - - - - - - - -
Transfers in 25,647 28,625 29,529 29,943 39,440 42,119 45,691 59,139 64,929 56,697
Transfers out 2(5,634) 2( 8,568) 3(0,367) 2(9,943) 3(9,440) (42,119) 4(5,691) 5(9,139) 6(4,929) 5(6,697)
Total o[hci financing sources 38,126 3,518 15,860 39,477 4,792 35,965 26,483 95,452 7,573 51,549
Net change in fund balances $20,766 $(16,902) S (1,380) $ 39,107 $ 6,712 S 40,404 $ 32,214 $ 80,771 $(32,358) $(11,893)
Debt service as a percentage of
noncapital expenditures 10.8% 11.0% 10.2% 10.6% 10.7% 10.01/. 9.4% 9.1% 8.9% 9.3%
Unaudited-sec accompanying indcpcnd,,,t auditors report.
Table 5
COUNTY OF HAWAII
Real Property Assessed Values by Classification and Tax Rates
Last Ten Fiscal Years
(Values in Thousands)
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per$1000 Land Per$1000 Real Property
2000 TminnvedRe;idential $682,289 $8.50 $940,477 $8.50 $1,622,766
Unimproved Residential 25,632 8.50 265,553 10.00 291,185
Apartment 902,922 8.50 420,396 10.00 1,323,318
Hotel andRcsort 591,684 8.50 489,784 10.00 1,081,468
Commercial 428,025 8.50 414,059 10.00 842,084
Industrial 179,874 8.50 201,599 10.00 381,473
Agricultural 677,306 8.50 1,357,024 10.00 2,034,330
Conservation 10,110 8.50 274,847 10.00 284,957
Homeowners 966,540 4.45 1,053,990 4.45 2,020,530
$4,464,382 $5,417,729 $9,882,111
Fiscal year 2000 total direct rate$838
2001 TmprovedResidential $676,174 $8.50 $885,704 $8.50 $1,561,878
Unimproved Residential 26,569 8.50 254,598 10.00 281,167
Apartment 928,776 8.50 472,629 10.00 1,401,405
Hotel and Resott 613,593 8.50 538,609 10.00 1,152,202
Commercial 424,849 8.50 414,440 10.00 839,289
Industrial 186,637 8.50 216,075 10.00 402,712
Agricultural 703,235 8.50 1,400,924 10.00 2,104,159
Conservation 11,546 8.50 279,024 10.00 290,570
Homeoivirers 1,009,482 4.45 1,040,520 4.45 2,050,002
$4,580,861 $5,502,523 $10,083,384
Fiscal year 2001 total direct rate$8.29
Continued next page.
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per$1000 Land Per$1000 Real Property
2002 Improved Residential $702,795 $8.50 $929,082 $8.50 $1,631,877
Unimproved Residential 34,430 8.50 266,680 10.00 301,110
Apartment 1,108,163 8.50 607,368 10.00 1,715,531
Hotel and Resort 679,994 8.50 674,698 10.00 1,354,692
Commercial 434,810 8.50 404,682 10.00 839,492
Industrial 175,926 8.50 219,603 10.00 395,529
Agricultural 721,915 8.50 1,565,525 10.00 2,287,440
Conservation 13,052 8.50 281,050 10.00 294,102
Homeoi,mets 1,131,340 4.45 1,120,213 4.45 2,251,553
$5,002,425 $6,068,901 $11,071,326
Fiscal year 2002 total direct rate$8.28
2003 Improved Residential $745,956 $9.10 $982,098 $9.10 $1,728,054
Unimproved Residential 25,869 9.85 299,285 9.85 325,154
Apartment 1,298,965 9.85 692,299 9.85 1,991,264
Hotel and Resort 698,520 9.85 742,371 9.85 1,440,891
Commercial 419,126 9.85 410,289 9.85 829,415
Industrial 181,812 9.85 217,552 9.85 399,364
Agricultural 767,171 9.85 1,511,217 9.85 2,278,388
Conservation 12,708 9.85 265,025 9.85 277,733
Homeowners 1,234,939 5.55 1,185,169 5.55 2,420,108
$5,385,066 $6,305,305 $11,690,371
Fiscal year 2003 total direct rate$9.13
2004 Improved Residential $826,773 $9.10 $1,035,139 $9.10 $1,861,912
Unimproved Residential 28,212 9.85 308,963 9.85 337,175
Apartment 1,506,172 9.85 777,079 9.85 2,283,251
Hotel and Resort 780,725 9.85 856,550 9.85 1,637,275
Commercial 473,665 9.85 416,505 9.85 890,170
Industrial 207,676 9.85 227,817 9.85 435,493
Agricultural 842,650 9.85 1,522,580 9.85 2,365,230
Conservation 17,250 9.85 325,262 9.85 342,512
Homeowner 1,453,595 5.55 1,284,728 5.55 2,738,323
$6,136,718 $6,754,623 $12,891,341
Fiscal year 2004 total direct rate$9.09
Continued next page.
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rate; Net Taxable
Year Property Building Per$1000 Land Per$1000 Real Property
2005 Improved Residential $969,500 $9.10 $1,264,100 $9.10 $2,233,600
Unimproved Residential 30,408 9.85 366,885 9.85 397,293
Apartment 1,772,930 9.85 745,530 9.85 2,518,460
Hotel and Resort 845,026 9.85 897,268 9.85 1,742,294
Commercial 516,945 9.85 455,664 9.85 972,609
Industrial 226,265 9.85 239,022 9.85 465,287
Agricultural 917,253 9.85 1,697,117 9.85 2,614,370
Conservation 24,485 9.85 346,186 9.85 370,671
Homeowner 1,714,555 5.55 1,504,821 5.55 3,219,376
$7,017,367 $7,516,593 $14,533,960
Fiscal year 2005 total direct rate$8.92
2006 Tmprovcd Residential $1,082,244 $9.10 $1,935,085 $9.10 $3,017,329
Unimproved Residential 29,762 9.85 470,738 9.85 500,500
Apartment 2,340,515 9.85 907,150 9.85 3,247,665
Hotel and Resort 981,538 9.85 942,988 9.85 1,924,526
Commercial 538,389 9.85 502,433 9.85 1,040,822
Industrial 255,292 9.85 280,950 9.85 536,242
Agricultural 970,198 9.85 2,082,838 9.85 3,053,036
Conservation 21,488 9.85 340,573 9.85 362,061
Homeowners 1,191,435 5.55 1,604,418 5.55 2,795,853
$7,410,861 $9,067,173 $1 6,478,034
Fiscal year 2006 total direct rate$8.98
2007 Improved Residential $1,281,050 $8.10 $2,938,402 $8.10 $4,219,452
Unimproved Residential 43,372 8.10 762,664 8.10 806,036
Apartment 3,154,981 8.10 1,347,158 8.10 4,502,139
Hotel and Resort 1,209,050 9.00 1,050,628 9.00 2,259,678
Commercial 620,567 9.00 662,801 9.00 1,283,368
Industrial 317,852 9.00 397,211 9.00 715,063
Agricultural 1,195,256 8.35 3,985,647 8.35 5,180,903
Conservation 28,472 8.55 356,316 8.55 384,788
Homeowners 1,408,215 5.55 1,947,983 5.55 3,356,198
$9,258,815 513,448,810 $22,707,625
Fiscal year 2007 total direct rate$7.96
Continued next page.
Table 5
Value of Building Value of Land Value of
Fiscal Class of Net Taxable Tax Rates Net Taxable Tax Rates Net Taxable
Year Property Building Per$1000 Land Per$1000 Real Property
2008 Improved Residential $1,520,234 $8.10 $3,843,169 $8.10 $5,363,403
Unimproved Residential 40,056 8.10 430,757 8.10 470,813
Apartment 3,690,371 8.10 1,517,500 8.10 5,207,871
Hotel and Resort 1,377,492 9.00 1,194,879 9.00 2,572,371
Commercial 695,318 9.00 805,168 9.00 1,500,486
Industrial 370,118 9.00 474,100 9.00 844,218
Agricultural 1,353,403 8.35 4,529,187 8.35 5,882,590
Conservation 31,771 8.55 347,798 8.55 379,569
Homeowners 1,687,649 5.55 2,360,873 5.55 4,048,522
$10,766,412 S 1 5,503,431 $26,269,843
Fiscal year 2008 total direct rate$7.94
2009 Improved Residential $2,385,714 $7.10 $4,287,515 $8.10 $6,673,229
Apartment 4,079,199 8.10 1,561,009 8.10 5,640,208
Hotel and Resort 1,542,712 9.00 1,271,240 9.00 2,813,952
Commercial 742,561 9.00 905,079 9.00 1,647,640
Industrial 418,607 9.00 561,220 9.00 979,827
Agricultural&Native Forest 2,245,161 6.35 4,325,743 8.35 6,570,904
Conservation 44,670 8.55 340,254 8.55 384,924
Homeowners 2,091,891 5.55 2,623,241 5.55 4,715,132
Affordable Rental Housing 41,793 5.55 38,026 5.55 79,819
$13,592,308 S 15,913,327 $29,505,635
Fiscal year 2009 total direct rate$7.68
Sonrce: County of Hawaii,Department of Finanec,Real Property Tax Division
NOTES: Assessed value is at 100%of market value.
Property is reassessed annually.
The County Council sets the tax rates annually.
There arc no overlapping property tax rates in the County of Hawaii.
Unaudited-sec accompanying independent auditors'report.
Table 6
COUNTY OF HAWAII
Principal Taxpayers
June 30,2009 and 2000
Fiscal Year 2009 Fiscal Year 2000
Percentage Percentage
2008 of Total 2000 of Total
Assessed Assessed Assessed Assessed
Taxpayer Business Valuation Rank Valuation Valuation Rank Valuation
Hualalai Investors LLC Developer/Hotel $ 240,434,900 1 0.7% $ - -
Hilton Land Investment I LLC Hotel 239,433,900 2 0.7% - -
Mauna Kea Development Corp. Developer/Hotel 237,247,300 3 0.7% - -
WB KD Acquisition LLC Developer 197,382,400 4 0.6% - -
1250 Oceanside Partners Developer 196,188,400 5 0.6% - -
WB-LCP Orchid Owner LLC Hotel 172,546,300 6 0.5% - -
Mauna Lani Resort Inc. Developer/Hotel 124,918,100 7 0.4% 77,207,700 5 0.6%
BRE/Waikoloa LLC Hotel 80,030,300 8 0.2% - -
Kona Coast Resort Ltd. Condo/Time Share 82,733,300 9 0.2% 45,528,800 10 0.4%
Raptor Residence LLC Private Dwelling 69,870,500 10 0.2% - -
Kaupulehu Makai Venture Developer/Hotel - - 158,187,600 2 1.3%
Global Resort Partners Hotel - - 186,149,600 1 1.5%
South Kohala Resort Corp. Hotel - - 106,122,000 3 0.9%
Mauna Kea Beach Hotel Corp. Hotel - - 96,063,200 4 0.8%
Kamehameha Schools(a) Land trust - - 65,594,100 6 0.5%
M.L.Hotel Investors LP Hotel - - 65,543,100 7 0.5%
KM Kona Partners Developer - - 61,400,400 8 0.5%
RWH Inc. Hotel - - 47,000,000 9 0.4%
############ 4.8% $ 908,796,500 7.4%
Note: Gross valuation at January 1,2008: $34,434,334,300
Gross valuation at January 1, 1999: $12,101,003,382
NOTES:
(a) Formerly known as BP Bishop Estate Trustees.
Source: County of Hawaii,Department of Finance,Real Property Tax Division
Unaudited-see accompanying independent auditors'report.
- 123 -
Table 7
COUNTY OF HAWAii
Property Tax Levies and Collections
Last Ten Fiscal Years
Outstanding
Total Delinquent
**Current Current Percent Delinquent Total Collections as Outstanding Taxes as
Fiscal Tax Tax of Levy Tax Tax Percent of Delinquent Percent of
Year Levy Collections Collected Collections Collections Current Levv Taxes Current Levu
2001* S 83,634,028 S 77,681,236 93% $ 5,878,942 $ 83,560,178 100% $ 73,850 0%
2002 91,691,607 83,598,357 91% 7,997,628 91,595,985 100% 95,622 0%
2003 106,778,257 97,441,908 91% 9,210,242 106,652,150 100% 126,107 0%
2004 117,215,364 108,774,402 93% 8,300,198 117,074,600 100% 140,764 0%
2005 129,700,981 122,832,275 95% 6,675,982 129,508,257 100% 192,724 0%
2006 150,694,655 143,737,768 95% 6,529,180 150,266,948 100% 427,707 0%
2007 184,878,904 172,704,922 93% 10,962,571 183,667,493 99% 1,21 1,41 1 1%
2008 208,528,812 200,408,441 96% 5,273,010 205,681,451 99% 2,847,361 1%
2009 226,675,644 219,437,531 97% - 219,437,531 97% 7,238,113 3%
*Complete information prior to Fiscal Year 2001 is unavailable.
**Amounts reflect subsequent adjustments
Source. County of Hawaii,Department of Finance,Real Property Tax Division
Unaudited-see accompanying independent auditors'report.
Table 8
COUNTY OF HAWATI
Ratios of Outstanding Debt by Type
LastTcn Fiscal Years
(Amounts in thousands,except per capita)
Rusmess-Type Component Total Primary Government
Governmental Activities Activities Unit Total Primuy_Government and Component Unit
General State Total General State Percentage Percentage
Fiscal Obligation Revolving Capital Notes Primary Obligation Revolving of Personal Per of Personal Per
Year Bonds Fund Loans Leases Payable Government(a) Bonds Fund Loans Income(b) Capita(b) Income(b) Capita(b)
2000 137,606,000 32,781,475 2,872,678 1,135,139 174,395,292 11,649,200 - 5.46% 1,173 5.82% 1,251
2001 130,512,500 34,394,028 2,399,868 1,117,954 168,424,350 10,722,800 - 5.00% 1,111 5.31% 1,182
2002 138,169,500 32,999,781 2,695,213 1,101,772 174,966,266 17,769,900 718,384 4.91% 1,134 5.43% 1,253
2003 168,607,000 31,680,295 3,293,462 1,084,667 204,665,424 16,794,600 2,842,108 5.50% 1,297 6.03% 1,421
2004 157,908,300 29,497,373 3,547,085 1,065,417 192,018,175 15,737,700 3,054,549 4.68% 1,187 5.14% 1,303
2005 182,158,285 28,760,504 3,642,928 1,041,285 215,603,002 14,657,708 2,905,354 4.87% 1,295 5.27% 1,401
2006 196,652,008 26,413,342 2,864,515 1,019,386 226,949,251 38,374,312 3,175,607 4.78% 1,326 5.65% 1,568
2007 269,281,339 30,246,751 4,085,735 995,854 304,609,679 36,708,368 5,599,767 5.94% 1,765 6.77% 2,011
2008 257,099,399 29,376,186 4,606,527 970,892 292,053,004 35,823,543 5,423,551 N/A 1,661 N/A 1,896
2009 291,363,218 26,697,288 4,179,805 944,124 323,184,435 33,954,671 8,154,507 N/A N/A N/A N/A
NOTES:
(a)Includes gov crrnnental activities mid business-type activities.
(b)See Table I I for personal income and population data.
Details regarding the County's outstanding debt can be found in Ore notes to the basic financial statements.
Unaudited-see accompanying independent author report.
Table 9
COUNTY OF HAWAII
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Debt Percent of
Applicable to Net Taxable
Fiscal Legal Debt Property Per
Year Margin(a) Value(b) Capita(c)
2000 162,716,490 1.6% 1,094
2001 156,636,220 1.6% 1,032
2002 161,310,657 1.5% 1,042
2003 187,316,839 1.6% 1,180
2004 176,693,195 1.4% 1,082
2005 195,198,142 1.3% 1,167
2006 205,219,940 1.2% 1,199
2007 281,836,503 1.2% 1,633
2008 265,431,280 1.0% 1,510
2009 296,535,925 1.0% N/A
NOTES:
(a) See Table 10 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable property values.
(c) See Table 11 for population data.
Details regarding the County's outstanding debt can be found in the
notes to the basic financial statements.
Unaudited-see accompanying independent auditors'report.
- 126 -
Table 10
COUNTY OF HAWAII
Legal Debt Margin Information
Last Ten Fiscal Yeats
(Amounts in thousands)
Fiscal Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Debt limit(a) $1,512,507 $1,512,507 $1,660,699 $1,753,556 $1,933,701 $2,180,094 '$2,471,705 $3,406,144 S3,940,476 $ 4,425,845
Debt applicable to limit 162,716 156,636 161,311 187,317 176,396 195,198 205,220 281,837 265,431 296,536
Legal debt margin(b) $1,349,791 71,355,871 S 1,499,388 $1,566,239 $1,757,305 S 1,994,396 $2,266,485 $3,124,307 53,675,045 $ 4,129,309
Debt applicable to the limit
as a percentage of debt limit 10.76% 10.36% 9.71% 10.68% 9.12% 8.95% 8.30% 8.27% 6.74% 6.70%
NOTES:
(a)State finance statutes limit the County's outstanding general debt to no more than 15 percent of the net assessed value ofproperty. See Table 5 for net assessed value of property.
(b)The legal debt margin is the Cormty's available borrowing authority under state finance statutes and is calculated by subtracting the net debt applicable to the legal debt
limit from the legal debt limit.
Legal Debt Margin Calculation for Fiscal Ycu-2009
Net assessed value $29,505,635
Debt limit(15%of net assessed value) $ 4,425,845
Debt applicable to limit 296,536
Legal debt margin $ 4,129,309
Unaudited-see accompanying independent auditor;report.
Table 11
COUNTY OF HAWAII
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Personal Per
Year Resident Income Capita
Ended Population (thousands Personal School Unemployment
June 30, as of July 1 of dollars) Income Enrollment Rate
1999 146,970 $ 2,987,074 $ 20,324 30,926 7.8%
2000 148,677 3,195,347 21,435 30,193 4.7%
2001 150,806 3,371,216 22,347 29,792 5.0%
2002 153,040 3,563,723 23,268 29,826 4.6%
2003 156,127 3,721,683 23,808 29,635 4.6%
2004 159,865 4,056,218 25,331 29,827 3.9%
2005 164,462 4,439,841 26,946 30,262 3.3%
2006 169,061 4,749,753 28,036 30,539 2.9%
2007 172,547 5,124,976 29,702 30,618 3.4%
2008 175,784 N/A N/A 30,408 5.5%
Source: County of Hawaii,Department of Research and Development
Unaudited-see accompanying independent auditors report.
- 128 -
Table 12
COUNTY OF HAWAII
Principal Employers,County of Hawaii
June 30,2009 and 2000
2009 2000
Percentage Percentage
of Total County of Total County
Employer Employees Rank Employrnent Employees Rank Employment
State of Hawaii 8,115 1 9.4% 7,450 1 10.6%
County of Hawaii 2,745 2 3.2% 2,250 2 3.2%
United States Government 1,364 3 1.6% 850 5 1.2%
Hilton Waikoloa Village 984 4 1.1% 1,200 4 1.7%
Wal-Mart 852 5 1.0% - -
KTA Super Stores 800 6 0.9% 776 7 1.1%
Mauna Lani Resort(Operation),Inc. 685 7 0.8% 800 6 1.1%
The Fairmont Orchid,Hawaii 577 8 0.7% - -
Four Seasons Resort Hualalai 562 9 0.7% - -
Hapuna Beach Prince Hotel 487 10 0.6% 579 9 0.8%
C.Brewer&Co. - - 1,987 3 2.8%
Mauna Lani Bay Hotel 650 8 0.9%
Orchid at Mauna Lani - - 554 10 0.8%
Total 17,171 20.0% 17,096 24.4%
Total employee count 86,325 70,050
Source: County of Hawaii,Department of Research and Development
Unaudited-see accompanying independent auditors'report.
- 129-
Table 13
COUNTY OF HAW_1II
Full-Time Equivalent County Government Employees by Function
Tast Tco Fiscal Vcars
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Function
Ga,c al go a art:
Cnnnty C-A 9.00 Ulf) 9.00 9.00 9.00 9.00 900 9.00 9.00 900
Caumy,Clcrk 48.00 41.00 44.00 41.00 4250 38.00 54.50 54.00 68.00 55.48
Legislative Auditor - - - - - - - - - 5.00
Mayor 1935 15.75 17.75 17.90 19.90 2L58 21.70 20.68 25.17 2149
Cat Porztion Cowtsel 36.00 36.00 37.00 37.00 35.00 41.00 39.00 39.95 311 30.00
Finance 80.00 7900 79.00 85.00 90.00 88.00 9190 113.49 141.89 16144
Human Rcsom'c. 22.00 24.00 2290 24.00 24.00 26.00 24.50 27.46 2898 2596
planning 2850 2890 29.00 29.00 31.00 3150 3590 36.00 4790 4890
Rcscarch&Dcvclopmcnt 9.55 10.00 9.00 13.00 12.00 13.00 13.20 14.48 15.00 15.00
Data System; 1590 1490 15.00 16.00 15.00 14.00 1790 17.00 1790 16.00
Public Works Admin&Ridding 116.50 113.00 115.00 115.00 121.00 12L00 12140 141.97 16637 170.44
Public Safety:
Pnlice 540.00 539.00 537.50 523.25 526.50 520.80 53620 557.23 57251 55337
Firu 316.48 299AS 300.48 301.48 316.98 34623 34020 363.71 42497 41295
Lignnr Canin,l 1160 1290 12.00 1 1.00 11.00 1190 1390 12.00 14.48 1490
ON iI Detcnec 5.00 6.00 6.00 5.00 5.00 7.00 6.00 5.00 5.00 790
Procccuting Attarney 7750 74.00 81.50 84.00 86.00 8390 8650 93.00 90.49 10390
Highways and Sheets:
Mass Transit 790 590 5.00 5.00 590 790 6.00 5.00 790 6.00
Traffic and Highway; 152.00 13800 163.00 156.00 153.00 151.00 16800 169.98 183.48 18148
Pukum Muter - - - - - - - - - -
Sanitatian:
Adn,misuation - 1.00 - 4.00 5.00 18.00 19.50 1949 1998 1949.
Suwur 48.00 4790 4(,.00 44.00 42.05 40.00 38.00 32.97 37A9 4147
Vchicic Disposal LOU I.00 1.00 1.00 1.00 LOU I.00 3.00 IN 100
Solid Waste 57.75 5775 56.75 52.75 56.75 5TS0 69.00 86.49 ST49 9149
Health,Education and Welfare:
Housing 3245 3548 38.48 39.48 42.48 4348 39.50 43.47 46.95 44.95
Aging 9.00 790 10.00 10.75 10.00 10.00 1250 13.00 1100 1290
Cult-and Rcctcation 410.37 395.42 390.15 398.70 340.05 386.48 43490 402.43 390.11 391.45
Tolal 2,053.44 2,009.85 2,024.61 2.023.31 2,053.21 2,085.57 2,195.60 2,281.33 2,451.46 2,445.56
Source: Comrty of Hawaii,Department of Finance
Unaudited-sec acwmpa"ya"independ�nt auditors'report.
Table 14
COUNTY OF HAWAII
Operating Indicators by Function
Last Ten Fiscal Years
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Function
Public Safety:
Police:
DUI arrests 1,081 1,207 841 1,004 900 964 1,163 1,354 1,397 1,395
Traffic citations issued 59,563 52,775 52,775 38,974 58,432 51,518 54,435 54,606 62,736 66,461
Fine:
Fireresponses 366 734 623 1,751 1,207 888 897 1,095 892 751
Emergency medical/rescue responses 10,055 10,169 12,003 11,944 14,693 13,671 14,945 15,502 16,098 15,099
inspections-Occupancy/Fire Protective Equipment 2,937 5,678 5,508 6,415 4,210 1,843 2,131 1,958 1,858 1,479
Sanitation:
Refuse disposed(tons per year) 149,987 163,825 166,625 179,284 201,011 225,051 222,945 223,144 210,199 172,431
Highways and Streets:
In-house street resurfacing(indes) 32 26 8 40 12 42 15 33 26 27
Parks and Recreation
Pavilion permits issued 1,700 1,755 1,948 1,567 1,739 1,908 1,888 1,744 2,055 2,310
Camping permits issued 3,800 4,031 4,233 4,576 4,627 4,765 5,146 5,200 3,870 3,998
Rounds of golf 103,993 91,018 87,862 88,889 80,015 79,101 74,677 82,182 76,648 80,229
Zoo attendance 80,000 84,000 137,000 133,086 156,184 163,176 171,958 172,315 163,601 182,286
Transit
Bus passengers N/A N/A N/A N/A N/A N/A 711,608 727,677 821,359 908,651
Public Works:
Building permits issued 3,466 3,233 3,497 4,250 4,418 5,350 5,883 5,165 4,507 3,929
Electrical permits issued 2,939 3,020 3,349 3,999 3,896 4,750 5,097 5,072 4,569 3,869
Plumbing pc,mits issued 2,485 2,676 2,696 2,954 1,907 3,888 4,557 4,368 3,622 2,983
Sign permits issued 67 67 60 59 46 63 50 51 75 62
,Source: County of Hawaii,Individual Dcpamncnts
Unandited-son am,nipanying independent audlto,e',:.port.
Table 15
COUNTY OF HAWAII
Capital asset Statistics by Functions
Last Ten Fiscal Years
2000 21101 2002 2003 20114 2005 2006 2007 211118 2009
Function
Public Safcty:
Police:
Stations 8 8 8 8 8 8 8 8 8 8
Substations 4 4 4 3 3 13 13 13 10 10
Fire stations IS 19 19 20 20 20 20 20 20 20
Highways and Street:
County streets(miles) 861 902 902 903 903 903 907 927 942 93
Shcetlights 8,462 9,684 8,719 8,823 8,949 9,017 9,027 9,246 9,308 9,404
Parks mud Recreation:
Parks 118 118 118 118 119 121 122 123 123 143
Gyros and recreation center 38 38 38 38 38 38 38 38 38 61
Sanitation:
Sanitary sewcas(miles) 47 53 53 53 53 53 53 58 10f)* 100*
"GIS FY 211"
Source: County of Hawaii,Department of Research and Development
Unaudited-sec aucomparrying independent auditor:report.