HomeMy WebLinkAboutCAFR 2013 FINALCOMPREHENSIVE
ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2013
COUNTY OF HAW All
Hilo, Hawaii
William P. Kenoi
Mayor
Walter Lau
Managing Director
Prepared by
The Department of Finance
Nancy E. Crawford
Director of Finance
COUNTY OF HA WAii
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2013
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal
GFOA Certificate of Achievement 8
Organization Chart 9
List of Elected Officials 10
List of Principal Officials 11
FINANCIAL SECTION
Report oflndependent Auditors 13
Management's Discussion and Analysis 15
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 28
Statement of Activities 30
Fund Financial Statements:
Balance Sheet -Governmental Funds 32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement ofNet Position 33
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds 34
Reconciliation of the Change in Fund Balances of Governmental
Funds to the Statement of Activities 36
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis) -General Fund 38
Statement of Net Position -Proprietary Funds 42
Statement of Revenues, Expenses, and Changes in Fund Net Position -
Proprietary Funds 43
Statement of Cash Flows -Proprietary Funds 44
Statement of Fiduciary Net Position -Fiduciary Funds 45
Statement of Changes in Fiduciary Net Position -Fiduciary Funds 46
Notes to the Basic Financial Statements 47
Required Supplementary Information 91
FINANCIAL SECTION (Continued)
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds 94
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances -Nonmajor Governmental Funds 98
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual (Budgetary Basis):
Highway Fund 101
Sewer Fund 102
Solid Waste Fund 103
Cemetery Fund 104
Parking Meter Fund 105
Vehicle Disposal Fund 106
Bikeway Fund 107
Workforce Investment Act Fund 108
Golf Course Fund 109
Geothermal Relocation and Community Benefits Fund 110
Beautification Fund 111
Hawaii County Housing Agency 112
Park Dedication Fund 113
Combining Statement of Agency Funds Net Position
Combining Statement of Changes in Assets and Liabilities
-Agency Funds 114
-Agency Funds 116
Combining Statement of Private Purpose Trust Net Position -Private Purpose Trusts 120
Combining Statement of Changes in Net Position -Private Purpose Trusts 121
STATISTICAL SECTION
Table 1 -Net Position by Component 123
Table 2 -Changes in Net Position 124
Table 3 -Fund Balances, Governmental Funds 126
Table 4 -Changes in Fund Balance, Governmental Funds 127
Table 5 -Real Property Assessed Values by Classification and Tax Rates 128
Table 6 -Principal Taxpayers 132
Table 7 -Property Tax Levies and Collections 133
Table 8 -Ratios of Outstanding Debt by Type 134
Table 9 -Ratios of General Bonded Debt Outstanding 135
Table 10 -Legal Debt Margin Information 136
Table 11 -Demographic and Economic Statistics 137
Table 12 -Principal Employers, County of Hawaii 138
Table 13 -Full-Time Equivalent County Government Employees by Function 139
Table 14 -Operating Indicators by Function 140
Table 15 -Capital Asset Statistics by Functions 141
INTRODUCTORY SECTION
William P. Kenoi
Mayor
Nancy E. Crawford
Director
Deanna S. Sako
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
December 24, 2013
The Honorable Mayor and Members of the Council
County of Hawai' i
25 Aupuni Street
Hilo, Hawai'i 96720
We transmit herewith the Comprehensive Annual Financial Report for the County of
Hawai'i, State of Hawai'i (the County), for the fiscal year July 1, 2012 to June 30, 2013.
This report was prepared by the County's Department of Finance. The accuracy of the
financial statements and the completeness and fairness of their presentation are the
responsibility of the County government. We believe the enclosed data are complete and
accurate in all material respects and are reported in a manner designed to present fairly
the financial position and results of operations of the various funds of the County. All
disclosures necessary to convey the maximum understanding of the County's financial
activities have been included. Management's discussion and analysis is also included to
aid users of the financial statements.
This report presents the financial position of the County of Hawai'i at June 30, 2013 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.
Hawai'i County is an equal opportunity provider and employer.
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This report includes all funds of the County ofHawai'i, including its component unit, the
Department of Water Supply, established by the County Charter as a semi-autonomous
body of the County government. This component unit is included in the County's
reporting entity because of its financial relationship with the County.
The County provides a full range of municipal services. These include police and fire
protection; emergency medical care; public prosecutor; culture and recreation; sanitation;
social services; water; planning and zoning; construction and maintenance of highways,
streets and infrastructure; real property assessment and tax collection; and general
administrative services. However, the County does not provide such other traditional
services as public education, hospitals and courts. These services are provided by the
State government.
The County consists of the island of Hawai'i, 4,028 square miles in size. It is twice as
large as the combined area of all the other inhabited islands in the Hawaiian Archipelago.
Since there is no other local or municipal government within the County, there are no
overlapping taxes and no overlapping debt. The County has an elected mayor and a nine-
member council.
Economic Condition and Outlook
The island ofHawai'i, commonly known as the Big Island, is located 214 miles from
Honolulu, the state capital; 2,200 miles from the west coast of the continental United
States; and 4,000 miles from Japan. The city of Hilo on the east side of the island serves
as the county seat as well as the transportation and financial center for the Big Island.
Hilo's infrastructure includes Hilo Harbor, a deep-water port, and Hilo International
Airport, which is capable 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, 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 economies. As a result it is
buffered to some extent when any one industry lags. Although the past few years proved
challenging to the island's economy, it appears that the County will continue on its steady
but slow road to improved financial health. This favorable outlook is supported by
positive trends in the following key areas of the island's economy.
For the fourth year in a row, the County's unemployment rate has served as a positive
indicator that the island's economy is on a course to recovery. The County's
unemployment rate for the current fiscal year (8.3%) was almost a full percent lower than
that of the prior year (9.2%).
Tourism -Tourism has always been 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 Hawai'i Volcanoes National Park. A popular attraction, the park is the most visited
site in the state, with almost 3.7 million visitors in fiscal year 2013 representing an almost
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7% increase from the prior fiscal year. Another indication of the County's slowly
rebounding industry, is the fact that there was also a 7% increase in the total number of
visitors to the island from the prior fiscal year. More significantly, spending growth for
this sector has been almost constantly increasing since the beginning of 2010.
Construction -Construction jobs have recovered by one-third of the decline experienced
in recent years and private building permits are up 25% in the first part of 2013 compared
to the same period the year before.
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. According to the First Hawaiian
Bank Economic Forecast, Mauna Kea observatories involve 11 facilities with an annual
budget of $75 million to support 527 county-based staff. Astronomy continues to be a
major factor in the success of the County's economy with an estimated nearly 500 new
jobs opening up through 2023 to meet the needs of the current observatories and the
creation of new jobs with the development of the Thirty Meter Telescope (TMT) by the
TMT Observatory Corporation. Permits have been issued for the TMT but a final appeal
has been lodged with the courts. Once construction begins, it is anticipated that the
construction and equipment costs will be $1.2 billion and the TMT will have an annual
operational budget of $27 million.
Major Initiatives
For the Year
During the year, the County focused on construction projects relating to housing,
sanitation and public safety, and other issues affecting the quality of life in the County.
Public Safety-On November 17, 2012, the Hawaii Police Department gained
accreditation by the Commission on Accreditation for Law Enforcement Agencies
(CALEA) for the first time.
Housing-Construction on Na Kahua Hale 0 Ulu Wini ("Ulu Wini", formerly known as
Kaloko Housing Program) located in North Kona continued through fiscal year 2013.
During the year, 36 units were constructed with the remaining 20 slated for completion
next fiscal year. Ulu Wini provides transitional (short-term, less than two years) and
permanent rental housing for families with children earning below 50% of the County's
adjusted median income, with preference for those impacted by homelessness. Entire
build-out of the site will include 96 two-bedroom units, a community center complete
with meeting room administrative offices, a laundry facility and kitchen, an employment
training facility, a playground and a wastewater treatment plant. Families engaged at Ulu
Wini will be provided either transitional or rental housing, case management, mail and
computer access, and an array of on-site support services including employment and life
skills training, mental health services, counseling and childcare.
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Following the completion ofKamakoa Nui's four model homes in the prior fiscal year,
sales began strong with the first five homes sold before the end of fiscal year 2013.
Kamakoa Nui is a master planned community in Waikoloa. The first phase of
development includes the construction of 91 homes. The project is intended to serve the
local work force population with affordable homes for purchase near the largest employer
on the Big Island, the Kohala Coast hotels.
For the Future
Public Safety -Securing funding for the South Kana Police Station continues to remain a
goal of the Hawaii Police Department along with planning for a new station in the Puna
District to replace the soon to be retired Keaau Police Station.
The Police Department has also begun the process of procuring a modernized and fully
integrated Computer Aided Dispatch (CAD) and Records Management System (RMS) to
better serve the community. Additionally, the Police Department is one of several
County Departments working on modernizing the County's public safety radio system.
Public Works-Improvements on Kaiminani Road are focused on reconstructing the
roadway, retaining walls, and drainage. 80% of the $10 million construction cost is paid
by the Federal Highways Administration and was completed on November 30, 2013.
The first phase ofKona's $7.8 million Laaloa Avenue Extension project is taking place.
The project includes a 1,900-foot connector road that will link Alii Drive with Kuakini
Highway. This is the first connector road to be built in decades along Alii Drive.
Construction is scheduled for completion in 2014.
Planning -The Planning Department's regulatory functions can be measured in terms of
volume and responsiveness. In order to have the ability to measure its responsiveness,
the Department is embarking on an effort to invest in the current tracking system to
generate performance reports that reflect categories of regulatory functions and
parameters.
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 should not exceed the benefits likely to
be derived; and (2) the valuation of costs and benefits requires estimates and judgments
by management.
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Budgetary Control
The County maintains budgetary controls to ensure that legal provisions of the annual
budget are complied with and that those expenditures do not exceed budgeted amounts.
Activities of the general fund and special revenue funds are included in the annual
appropriated operating budget. Project-length financial plans are adopted for the capital
projects fund. Budgetary control is established at the department level.
Formal budgetary integration is employed as a management control device for the general
fund, special revenue funds, and the capital projects fund. Budgetary control for the debt
service fund is achieved through general obligation bond indenture provisions.
The basis of accounting used for the budgets of the general and special revenue funds
differs from generally accepted accounting principles. Intergovernmental revenues are
recognized when awarded by the granting agency, encumbrances and unexpended
allotments are treated as expenditures for purposes of determining legal compliance with
the annual budget, all leases are treated as operating leases, and accounts payable are not
accrued.
The County also maintains an encumbrance accounting system as one technique of
accomplishing budgetary control. Encumbrances outstanding at fiscal year end are
included in the various fund balance categories based on whether the resources are
restricted, committed or assigned and do not constitute expenditures or liabilities because
they will be honored during the following year. As demonstrated by the statements and
schedules included in the financial section of this report, the County continues to meet its
responsibility for sound financial management.
Cash Management
Cash temporarily idle during the year was invested in savings accounts, money market
mutual funds, certificates of deposit, repurchase agreements, and agency notes. The
average yield on deposits and investments was .18%.
The County's policy is to minimize credit and market risks while maintaining a
competitive yield on its portfolio. Accordingly, with the exception of $264,173 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.
Financial Highlights
As a result of another year of declining property values which negatively impacted real
property tax revenues, the County was again faced with the dilemma of balancing its
budget. To avoid negatively impacting the local economy, the County worked diligently
to lower its operating costs while continuing to service the community and its people
rather than raise real property taxes.
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In an effort to lower its debt service costs, the County issued bonds to refund $52.9
million of various debt instruments, resulting in an estimated savings of approximately
$9.5 million in principal and interest payments.
The County continued the furloughs and pay reductions for both its HGEA and UPW
union employees from the prior year.
As part of the strategy for balancing the budget, the County also decided to temporarily
forgo the employer contributions relating to the pre-funding of its postemployment
benefits other than pensions that it had fully funded for four of the previous five fiscal
years.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants.
Accuity LLP was selected in accordance with the County Charter and the procurement
provisions of the Hawaii Revised Statutes (HRS) and Hawaii Administrative Rules
(HAR) to perform the audit.
Employee Union Contracts
County employees are members of seven different bargaining units. Three bargaining
units have contracts that will expire on June 30, 2015. Three bargaining units have
contracts that will expire on June 30, 2017. The one remaining bargaining unit received
an interest arbitration decision in November 2013, however, the cost items associated
with that decision are currently subject to the approval of all legislative bodies. The
County anticipates this cost approval process will conclude on or about the end of the
2014 Legislative session (May 2014).
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 Hawai'i for its Comprehensive Annual Financial Report for the fiscal year
ended June 30, 2012. This was the twenty-fifth consecutive year that the government has
received 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.
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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 ofHawai'i.
~~ Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
. County of Hawaii
Hawaii
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2012
Executive Director/CEO ·
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I l ~
I
I
County of Hawaii
Organization Chart
I County Electorate I
I County Counci Mayor I
I I Prosecuting Attorney I
County
Clerk
Legislative
Auditor
Office of Management:
Managing Director ,....___
I
Departments under
direct supervision of the
Managing Director:
Corporation Counsel
Finance
Planning
Environmental Management
Research & Development
Public Works
Parks & Recreation
Information Technology
Agencies under
direct supervision of the
Managing Director:
Civil Defense
Office of Aging
Mass Transit
Office of Housing &
Community Development
Departments under
commissions and
administrative supervision
of the Mayor:
Human Resources
Police
Liquor Control
Fire
Water Supply
(semi-autonomous)
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County of Hawaii
Elected Officials
June 30, 2013
Administrative Officers (Term: 2012-2016)
William P. Kenoi Mayor
Mitchell Roth Prosecuting Attorney
County Council (Term: 2012-2014)
J Yoshimoto Chair
Karen Eoff Vice Chair
Brenda Ford Member
Greggor Ilagan Member
Dru Mamo Kanuha Member
ZendoKem Member
Dennis "Fresh" Onishi Member
Valerie Poindexter Member
Margaret Wille Member
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Principal Officials
June 30, 2013
County Clerk Stewart Maeda
Legislative Auditor, Acting Lane Shibata
Managing Director Walter Lau
Deputy Managing Director Randy Kurohara
Corporation Counsel Lincoln Ashida
Director of Finance Nancy E. Crawford
Planning Director Duane Kanuha
Director of Personnel Ronald Takahashi
Director of Research and Development Laverne Omori
Chief of Police Harry S. Kubojiri
Fire Chief Darren Rosario
Director of Public Works Warren Lee
Director of Environmental Management Bobby Jean Leithead-Todd
Parks and Recreation Director Clayton Honma
Manager-Chief Engineer, Department of Water Supply Quirino Antonio, Jr.
Civil Defense Administrator, Acting Darryl Oliveira
Director of Liquor Control Gerald Takase
Mass Transit Administrator Tiffany Kai
Executive on Aging Alan Parker
Administrator, Office of Housing and
Community Development Stephen Arnett
Director of Information Technology, Acting Donald F. Jacobs, Jr.
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FINANCIAL SECTION
CERTIFIED PUBUC ACCOUNTANTS
Report of Independent Auditors
To the Chair and Members of the County Council
County of Hawai'i
Report on the Financial Statements
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 Hawai'i, State of Hawai'i (the "County") as of and for the year ended June 30,
2013, and the related notes to the financial statements, which collectively comprise the County's basic
financial statements as listed in the table of contents. We also have audited each fiduciary fund type of
the County as of and for the year ended June 30, 2013, as displayed in the County's basic financial
statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors' Responsibility
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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
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 as well as
each fiduciary fund type of the County, as of June 30, 2013, and the respective changes in financial
position, and, where applicable, cash flows thereof and the budgetary comparison for the general fund for
the year then ended in accordance with accounting principles generally accepted in the United States of
America.
~ an independent member oJ
BAKER TILLY
INTERNATIONAL
999 BISHOP STREET, SUITE 1900
HoNoLUw, HAwAu 96813
TELEPHONE: 808 531 3400 FACSlMIU:: 808 531 3433
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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and schedule of funding progress for the EUTF information on pages 15 through
25 and 91 be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing
the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
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, combining and individual
nonmajor fund financial statements, fund schedules, and 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 fund schedules are the
responsibility of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted
in the United States of America. In our opinion, the combining and individual nonmajor fund financial
statements and fund schedules are fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 24,
2013 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 internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the County's internal control over
financial reporting and compliance.
Honolulu, Hawai'i
December 24, 2013
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MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the County ofHawai'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, 2013. 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 $767.0 million
(net position). This amount includes $2.9 million in unrestricted net position, a decrease of
$36.9 million from the prior year.
• The County's total net position increased by $84.0 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 $195.3 million, an increase of $48.9 million from the prior year.
Approximately 42 percent of this total amount, $82.0 million, is available for spending at the
County's discretion (unrestricted fund balance).
• At the end of the current fiscal year, unrestricted fund balance for the general fund was $45.6
million, or 21 percent of total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements comprise three components: (1)
Government-wide financial statements, (2) Fund financial statements, and (3) Notes to the basic
financial statements. This report also contains both required and other supplementary
information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the County's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the County's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in
net position may serve as a useful indicator of whether or not the financial position of the County
is improving or deteriorating.
The statement of activities presents information showing how the County's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses
pertaining to earned but unused vacation and sick leave.
Both 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 are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the County include
public safety, highways and streets, health, education and welfare, culture and recreation,
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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 schedules 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
-16 -
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
certain required supplementary information, which is presented immediately following the notes
to the basic financial statements. The combining statements referred to earlier in connection with
nonmajor governmental funds and budgetary comparison schedules for the nonmajor special
revenue funds are presented immediately following the required supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Condensed Statement of Net Position
June 30, 2013 and 2012
Primary Government
Governmental Activities Business-type Activities Total
Assets:
Current and other assets $ 253,214,295 $ 252,075,426 $ 1,111,875 $ 1,036,087 $ 254,326,170 $ 253,111,513
2013 2012
Capital assets, net 1,009,857,355 917,249,344 1,611,888 1,167,154 1,011,469,243 918,416,498
Total assets 1,263,071,650 1,169,324,770 2,723,763 2,203,241 1,265,795,413 1,171,528,011
Liabilities:
Long-term liabilities
outstanding 461,905,296 438,814,811 1,296,633 851,306 463,201,929 439,666,117
Other liabilities 35,506,628 48,424,315 66,685 395,021 35,573,313 48,819,336
Total liabilities 497,411,924 487,239, 126 1,363,318 1,246,327 498,775,242 488,485,453
Net position:
Net investment in
capital assets 699 ,326,156 594,384,524 315,255 315,848 699,641,411 594,700,372
Restricted 64,437,707 48,360,223 185,148 64,437,707 48,545,371
Umestricted 1,895,863 39,340,897 1,045,190 455,918 2,941,053 39,796,815
Total net position $ 765,659,726 $ 682,085,644 $ 1,360,445 $ 956,914 $767,020,171 $683,042,558
-17 -
Analysis of Net Position
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the County, assets exceeded liabilities by $767.0 million at the
close of the most recent fiscal year.
By far the largest portion of the County's net position (91 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 ofrelated debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the County's net position (8 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 position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
The County's net position increased by $84.0 million during the current fiscal year, which was
$8.3 million more than the increase during last fiscal year. Capital grants and contributions
increased by approximately $20.8 million relating mostly due to increases related to highways
and streets with reductions in those related to sanitation. The increase was offset and reduced by
a decrease in real property taxes of approximately $9 .1 million.
The County's net capital assets increased by $93.1 million due to the large amount of capital
improvement projects done by the County during the current fiscal year and infrastructure related
assets that were contributed. See further discussion of the increase in capital assets on page 23.
The County's long-term liabilities outstanding increased by $23.5 million (5 percent) due
primarily to the increases resulting from the County's decision to forgo the employer
contributions relating to the pre-funding of its postemployment benefits other than pensions and
the issuance of new bonds. These increases were offset by principal payments on the General
Obligation Bonds and the State Revolving Fund loans from the prior year. See further discussion
of the increase in long-term debt outstanding on page 24.
-18 -
Condensed Statement of Activities
For the Fiscal Years Ended June 30, 2013 and 2012
Primary Government
Governmental Activities Business-type Activities Total
2013 2012 2013 2012 2013 2012
Revenues:
Program revenues:
Charges for services $ 34,930,495 $ 34,875,798 $ 432,057 $ 393,464 $ 35,362,552 $ 35,269,262
Operating grants and contributions 44,410,353 45,767,655 123,800 131,227 44,534,153 45,898,882
Capital grants and contributions 107,584,670 86,754,033 107,584,670 86,754,033
General revenues:
Property taxes 200,775,779 209,894,427 200,775,779 209,894,427
Other taxes 28,206,334 29,255,027 28,206,334 29,255,027
Grants and contributions, unrestricted 17,750,132 19,074,105 17,750,132 19,074,105
Investment earnings (loss) (81,020) 230,804 1,416 5,641 (79,604) 236,445
Other 2,320,838 1,773,258 342,275 2,663,113 1,773,258
Total revenues 435,897,581 427,625,107 899,548 530,332 436,797,129 428,155,439
Expenses:
General government 55,616,102 56,115,599 55,616,102 56,115,599
Public safety 151,975,049 152,288,979 151,975,049 152,288,979
Highways and streets 42,219,903 42,462,299 42,219,903 42,462,299
Health, education and welfare 28,001,020 28,127,691 496,017 517,052 28,497,037 28,644,743
Culture and recreation 22,121,336 23,412,948 22,121,336 23,412,948
Sanitation 38,505,086 35,049,546 38,505,086 35,049,546
Interest on long-term debt 13,885,003 14,519,382 13,885,003 14,519,382
Total expenses 352,323,499 351,976,444 496,017 517,052 352,819,516 352,493,496
Increase in net position 83,574,082 75,648,663 403,531 13,280 83,977,613 75,661,943
Net position at beginning of year 682,085,644 606,436,981 956,914 943,634 683,042,558 607,380,615
Net position at end of year $ 765,659,726 $ 682,085,644 $ 1,360,445 $ 956,914 $ 767,020,171 $ 683,042,558
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by
$83.6 million or basically all of the total growth in net position of the County.
Total revenues increased by $8.3 million (2 percent). The combined total revenues for both the
Operating and Capital grants and contributions also increased by approximately $19.5 million,
which related mostly to increases in highways and streets projects being netted with decreases in
sanitation. This overall increase in grants and contributions revenue was offset by decreases in
the other revenue sources. The most significant decrease of $9 .1 million was in real property
taxes, which was due to a slight decline in the value of net taxable real property as evidenced in
the accompanying statistical tables but is an improvement as compared to the decrease of $15 .2
million experienced in the prior year.
Total expenses increased by only $347,055 (less than 0.5 percent).
-19 -
Expenses and Program Revenues -Governmental Activities
Year Ended June 30, 2013
$160,000,000
$140,000,000
$120,000,000 +------
---
---
--
$100,000,000 +---
$80,000,000 +---
$60,000,000 +---
$40,000,000
$20,000,000
$0
i&! Ex enses •Pro ram revenues
Revenue by Source -Governmental Activities
Year Ended June 30, 2013
Investment loss,
$(81,020)
Other, $2,320,838 Charges for services,
$34,930,495
Grants and contributions __ ___:_:. _ _;_ _____ -::'.i
Property taxes,
$200, 775, 779
-20 -
contributions,
$44,410,353
Capital grants and
contributions,
$107,584,670
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 ( 43 percent),
followed by general government (16 percent) and highways and streets (12 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 ( 46 percent), followed by capital
grants and contributions (25 percent) and operating grants and contributions (10 percent).
Business-type activities. Business-type activities increased the County's net position by
$403,531 versus an increase of only $13,280 in the prior year. Expenses for health, education and
welfare account for all of the $496,017 of expenses. Charges for services were $432,057,
operating grants and contributions were $123,800 and investment earnings were $1,416. Other
income of$342,275 was recognized due to the forgiveness ofa lease payable, which accounts for
substantially all of the $369,000 increase in overall revenues. Expenses decreased $21,035 (4
percent) mostly due to decreases in general and administration expenses of $33,839.
FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the County's governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful
in assessing the County's financing requirements. In particular, unrestricted fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
As of the end of the current fiscal year, the County's governmental funds reported combined
ending fund balances of $195.3 million, an increase of $48.9 million in comparison with prior
year. Approximately 42 percent of this total amount ($82.0 million) constitutes unrestricted fund
balance. The unrestricted portion of the fund balance is comprised of ( 1) $41.6 million in
committed fund balance, (2) $31.7 million in assigned fund balance and (3) $8.7 million in
unassigned fund balance. The remainder of the fund balance is divided between $3.5 million in
nonspendable fund balance for inventory and $109.8 million in restricted fund balance.
Approximately 84% of the restricted fund balance is due to restrictions relating to highways,
streets and abandoned vehicles ($48.3 million), public safety radio system upgrade ($25.0
million), and debt service ($19 .1 million).
The general fund is the chief operating fund of the County. At the end of the current fiscal year,
unrestricted fund balance of the general fund was $45.6 million, while total fund balance
increased to $53.9 million. As a measure of the general fund's liquidity, it may be useful to
compare both unrestricted fund balance and total fund balance to total fund expenditures.
Unrestricted fund balance represents 21 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 $5.2 million during the current fiscal
year as compared to an increase of $4.1 million in the prior year. Key factors in this slight
increase ($1.1 million) over last year's increase are as follows:
-21 -
-
• A decrease of$8.4 million (15 percent) in transfers out to other funds, with the largest
reductions in the transfers to the debt service funds ($6.0 million) and to the Solid Waste
Fund ($2.4 million).
• The positive impact of the decrease in transfers out was mitigated by a decrease of$7.0
million (3 percent) in real property taxes, which was mostly due to lower collections resulting
from the slight decline in the value of net taxable real property as evidenced in the
accompanying statistical tables.
The fund balance of the County's capital projects fund increased by $53.5 million during the
current fiscal year. The increase is primarily due to the combined total of the fund's main
revenue sources of long-term debt financing, which consists of bond proceeds ($50.5 million),
premiums on the issuance of bonds ($10.1 million) and state revolving fund loan proceeds ($5.0
million); intergovernmental revenue ($11.2 million); settlement contributions ($12.5 million) and
transfers in ($3.5 million) being greater than capital and debt service expenditures ($39.5 million)
for the current fiscal year.
The debt service funds consist of the Bond Redemption Fund and the Interest Fund. These funds
have combined total fund balances of $19 .1 million, all of which is restricted for the payment of
debt service. The net decrease in the combined fund balances during the current year in the debt
service funds was $7.0 million (27 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 position of the Kulaimano Elderly Housing Project (Kulaimano) at the end of the
year amounted to $761,021, and $284,169 for the Ouli Ekahi Affordable Housing Project (Ouli
Ekahi). The total net position for Kulaimano increased by $643 and the net position for Ouli
Ekahi increased by $402,888. 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 $6. 7 million increase in appropriations, most of which ( 60 percent) is due to increases in the
appropriations for capital outlays.
Differences between the final budget and the actual (budgetary basis) resulted in $242,000 more
revenues than expected and $21.8 million less expenditures than appropriated. This is primarily
due to the following factors:
• The positive variances in real property and public service company taxes of $3. 7 million was
negated by an almost equal negative variance in intergovernmental revenues for both the
federal and state grants of $3 .3 million.
• $5.5 million of the unspent appropriations is related to salaries and wages. The variance is
due primarily to unfilled vacancies and continued efforts by each department to control
payroll costs during the budget year due to the tough economic conditions facing the County.
The following functions are responsible for the majority of the variance: public safety ($3.5
million), general government ($1.2 million) and culture and recreation ($0.7 million).
• $2.2 million is due to lower than anticipated payments needing to be made in pension related
payments. With each department increasing efforts to control costs, overtime was also
closely monitored and the corresponding pension expenditures were not incurred.
22 -
• $3.5 million is due to the fact that the increase in health premiums for employees' was lower
than originally anticipated.
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, 2013 amounts to $1,011 million (net of accumulated depreciation). This
investment in capital assets includes land and improvements, buildings and improvements,
equipment, easements, and infrastructure assets, which consists of primarily roads and bridges.
The total increase in the County's investment in capital assets for the current fiscal year was 10
percent.
Major capital asset events during the current fiscal year included the following:
• Construction continued on the Ane Keohokalole Highway; additional construction costs of
$1.3 million were capitalized during the fiscal year.
• Construction continued on Na Kahua Hale 0 Ulu Wini Housing Project (formerly known as
Kaloko Housing Program) and related housing employment training facility; construction in
progress as of the end of the current fiscal year for both projects increased by $5.6 million to
reach a total of $6. 7 million, of which the portions relating to the completed phases were
transferred to Building and Improvements.
• Construction continued on the Kalanianaole Sewer Interceptor Line Rehabilitation Phase 2;
construction in progress as of the end of the current fiscal year increased by $5 .1 million to
reach a total of $5 .3 million.
• Construction began on two Mamalahoa Highway Earthquake projects (MP 4.4 and 8.9);
construction in progress as of the end of the current fiscal year for both projects had reached
$3.9 million, which was transferred to Infrastructure.
• Construction began on the Edith Kanakaole Multi-Purpose Stadium Improvements;
construction in progress as of the end of the current fiscal year had reached $3.3 million,
which was transferred to Buildings and Improvements.
• Construction began on the Kaiminani Drive Roadway Improvements Phase I; construction in
progress as of the end of the current fiscal year had reached $6.1 million.
• $68.5 million of dedicated roads were received by the County in the current fiscal year.
• $8.1 million of various other equipment and real property were dedicated and donated to the
County in the current fiscal year.
-23 -
Capital Assets
(net of depreciation)
June 30, 2013 and 2012
Primary Government
Governmental Activities Business-type Activities Total
2013 2012 2013 . 2012 2013 2012
-
Land and improvements $ 163,565,168 $ 129,569,750 $ 753,877 $ 753,877 $ 164,319,045 $ 130,323,627
Infrastructure assets 274,969,315 246,938,042 274,969,315 246,938,042
Ground and site improvements 75,280 67,580 75,280 67,580
Buildings and improvements 476,759,437 455,481,924 754,675 329,730 477,514,112 455,8I1,654
Easements 3,500,794 3,232,428 3,500,794 3,232,428
Equipment 48,585,309 50,089,791 28,056 15,967 48,613,365 50,105,758
Construction work in progress 42,477,332 31,937,409 42,477,332 31,937,409
Total $1,009,857,355 $ 917,249,344 $ 1,611,888 $ 1,167,154 $1,011,469,243 $ 918,416,498
Additional information on the County's capital assets can be found in note 6 to the basic financial
statements.
Long-term debt. Long-term debt is primarily comprised of bonds of$313.3 million and State
Revolving Fund loans of $20.9 million. At the end of the current fiscal year, the County had total
bonded debt outstanding of$313.3 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 $31.5 million (11.2 percent) during the current fiscal
year due to the issuance of new bonds totaling $50.5 million, which were offset by regularly
scheduled principal payments.
At the end of the fiscal year, the County maintained its "AA-" rating from Standard & Poor's and
Fitch and "Aa2" rating from Moody's for general obligation debt.
State statutes limit the amount of general obligation debt the County may issue up to 15 percent
of the total assessed value of all county real property as established for tax purposes on the last
tax assessment rolls. The current debt limitation for the County is $3 .5 billion, which is in excess
of the County's outstanding general obligation debt. Currently the County's outstanding debt
represents 9 percent of our debt limitation.
Additional information on the County's long-term debt can be found in note 10 to the basic
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• The unemployment rate for the County for the current fiscal year is at 8.3 percent, which
represents almost a full percent decline from last year's rate for the same period of 9 .2
percent.
• The number of visitors to the County for the current fiscal year was approximately 1.5
million, which represents an approximately 7 percent increase from the previous year's
count of 1.4 million. More importantly, visitors have been increasing their spending
almost constantly since the beginning of 2010 and the spending growth for this sector has
been even stronger than the actual arrivals.
• Astronomy continues to be a major factor in the success of the County's economy with
an estimated nearly 500 new jobs opening up through 2023 to meet the needs of the
24 -
current observatories and the creation of new jobs with the development of the Thirty
Meter Telescope (TMT) by the TMT Observatory Corporation. Permits have been issued
for the TMT but a final appeal has been lodged with the courts. Once construction
begins, it is anticipated that the construction and equipment costs will be $1.2 billion and
the TMT will have an annual operational budget of $27 million. According to the First
Hawaiian Bank Economic Forecast, Mauna Kea observatories involve 11 facilities with
an annual budget of $75 million to support 527 county-based staff.
• The outlook for the construction industry based on building permits seems to be
improving despite a few challenges that remain in the areas of the rising cost of materials
and the workforce availability. Construction jobs have recovered by one-third of the
decline experienced in recent years and private building permits are up 25% in the first
part of 2013 compared to the same period the year before.
Several large construction projects are on the horizon for each side of the island. The
west side of the island saw the initial breaking ground on the $20 million Palamaui
campus construction project for the Hawaii Community College and several substantial
highway projects, which include includes the Hawaii Community College and the
widening of the Queen Kaahumanu Highway ($75 million) and Phase III of the Saddle
Road ($32 million). The east side includes the Mohouli Senior Housing Project ($30
million) and the Route 130 widening (expected to be $150 million).
These factors were considered in preparing the County's budget for the 2014 fiscal year.
At the end of the current fiscal year, unrestricted fund balance in the general fund was $45.6
million. The County has appropriated $21. 7 million of this amount for spending in the 2014
fiscal year budget and it is included in the assigned portion of the fund balance.
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 ofHawai'i, 25 Aupuni Street, Suite 2103, Hilo, Hawai'i 96720.
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-26-
BASIC FINANCIAL STATEMENTS
-27 -
COUNTY OF HA WAii
Statement of Net Position
June 30, 2013
Primary Government
Governmental
Activities
Business-type
Activities
Total
Component
Unit
Assets
Current assets:
Cash and cash equivalents (notes 3 and 14) $ 37,444,459 $ 810,157 $ 38,254,616 $ 29,430,095
Restricted cash and cash equivalents (note 3) 36,916,644 39,448 36,956,092
Investments (notes 3 and 14) 11,854,523 11,854,523
Restricted investments (note 3) 45,759,190 45,759,190
Receivables, net (note 4) 46,219,906 4,979 46,224,885 7,528,043
Receivable from improvement district
(notes 4 and 10) 64,014 64,014
Internal balances (note 5) (29,954) 29,954
Inventories 3,492,464 3,492,464 1,225,218
Prepaid expenses 1,501 1,501 170,541
Real estate held for sale 1,208,129 1,208,129
Other 904,578 904,578
Total current assets 183,833,953 886,039 184,719,992 38,353,897
Investments (note 3) 34,918,751 199,430 35,118,181
Restricted investments (note 3) 33,179,660 33,179,660
Restricted cash and cash equivalents (note 3) 26,406 26,406 2,574,396
Receivable from improvement district, excluding
current portion (notes 4 and 10) 1,281,931 1,281,931
Deferred charges 3,137,633
Capital assets (notes 6, 8 and 14):
Utility plant in service, net 255,152,015
Infrastructure assets, net 274,969,315 274,969,315
Ground and site improvements, net 75,280 75,280
Buildings and improvements, net 476,759,437 754,675 477,514,112
Equipment, net 48,585,309 28,056 48,613,365
Easements, net 3,500,794 3,500,794
Construction work in progress 42,477,332 42,477,332 11,708,146
Land and improvements 163,565,168 753,877 164,319,045 4,528,502
Total capital assets, net 1,009,857,355 1,611,888 1,011,469,243 271,388,663
Total noncurrent assets 1,079,237,697 1,837,724 1,081,075,421 277,100,692
Total assets 1,263,071,650 2,723,763 1,265,795,413 315,454,589
(Continued)
-28 -
COUNTY OF HA WAii
Statement of Net Position
June 30, 2013
(Concluded)
Primary Government
Governmental
Activities
Business-type
Activities
Component
Unit Total
Liabilities
Current liabilities:
Accounts payable and accrued liabilities $ 14,986,633 $ 49,289 $ 15,035,922 $ 2,769,640
Accrued payroll 7,653,546 7,653,546 1,020,654
Deferred revenue (note 7) 3,440,011 1,605 3,441,616
Interest due on long-term debt 6,119,459 15,791 6,135,250 1,029,460
Bonds and loans payable, current portion net
(notes 10 and 14) 18,854,249 40,571 18,894,820 2,556,320
Compensated absences, current portion (note 10) 7,540,581 7,540,581 403,222
Claims and judgments, current portion
(notes 10, 12 and 14) 2,608,535 2,608,535 51,227
Capital leases, current portion (notes 8 and 10) 1,335,930 1,335,930
Landfill costs payable, current portion
(notes 9 and 10) 193,821 193,821
Customers' deposits 589,539
Other 3,306,979 3,306,979
Total current liabilities 66,039,744 107,256 66,147,000 8,420,062
Noncurrent liabilities:
Bonds and loans payable, net
(notes 10 and 14) 334,703,553 1,256,062 335,959,615 51,123,708
Compensated absences (note 10) 24,624,529 24,624,529 1,147,631
Claims and judgments (notes 10, 12 and 14) 9,795,927 9,795,927 177,773
Capital leases (notes 8 and 10) 2,296,490 2,296,490
Landfill costs payable (notes 9 and 10) 21,791,179 21,791,179
Deferred revenue 1,583,953
Customers' deposits 16,459,048
Other (note 13) 38,160,502 38,160,502
Total noncurrent liabilities 431,372,180 1,256,062 432,628,242 70,492,113
Total liabilities 497,411,924 1,363,318 498,775,242 78,912,175
Net Position
Net investment in capital assets 699,326,156 315,255 699,641,411 220,283,031
Restricted for:
Capital projects 22,760,127 22,760,127
Debt service (note 10) 19,126,622 19,126,622
Highways, streets and abandoned vehicles 14,838,441 14,838,441
Public access open space 4,192,817 4,192,817
Other 3,519,700 3,519,700
Unrestricted 1,895,863 1,045,190 2,941,053 16,259,383
Total net position $ 765,659,726 $ 1,360,445 $ 767,020,171 $ 236,542,414
See accompanying notes to the basic financial statements.
-29 -
COUNTY OF HAW All
Statement of Activities
For the Fiscal Year Ended June 30, 2013
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
-
Primary government:
Governmental activities:
General government $ 55,616,102 $ 1,695,152 $ 1,983,060 $ 5,217,111
Public safety 151,975,049 5,117,102 19,664,648 25
Highways and streets 42,219,903 10,159,443 2,073,483 97,316,020
Health, education and welfare 28,001,020 570,312 19,562,429 3,194,290
Culture and recreation 22,121,336 1,794,553 59,213 640,400
Sanitation 38,505,086 15,593,933 1,067,520 1,216,824
Interest on long-term debt 13,885,003
Total governmental activities 352,323,499 34,930,495 44,410,353 107,584,670
Business-type activities:
Health, education and welfare 496,017 432,057 123,800
Total primary government $ 352,819,516 $ 35,362,552 $ 44,534,153 $ 107,584,670
Component unit:
Water (note 14) $ 51,575,668 $ 48,406,240 $ $ 15,226,253
General revenues:
Taxes:
Property taxes, levied for general purposes
Public service company taxes
Public utility franchise taxes
Fuel taxes
Grants and contributions not restricted to specific programs
Investment earnings (loss)
Other
Total general revenues
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
30 -
Net (Expense) Revenue and Changes in Net Position
Primary Government
Governmental
Activities
Business-type
Activities
-
Component
Unit
$ (46,720,779) $ $ (46,720,779) $
(127,193,274) (127,193,274)
67,329,043 67,329,043
(4,673,989) (4,673,989)
(19,627,170) (19,627,170)
(20,626,809) (20,626,809)
{13,885,003) {13,885,003)
(165,397,981) (165,397,981)
59,840 59,840
(165,397,981) 59,840 (165,338,141)
12,056,825
200,775,779 200,775,779
10,766,021 10,766,021
11,087,369 11,087,369
6,352,944 6,352,944
17,750,132 17,750,132
(81,020) 1,416 (79,604) 231,984
2,320,838 342,275 2,663,113
248,972,063 343,691 249,315,754 231,984
83,574,082 403,531 83,977,613 12,288,809
682,085,644 956,914 683,042,558 224,253,605
$ 765,659,726 $ 1,360,445 $767,020,171 $ 236,542,414
31 -
COUNTY OF HAW All
Governmental Funds
Balance Sheet
June 30, 2013
General
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and cash equivalents (note 3) $ 9,791,443 $ 26,619,537 $ 37,950,123 $ 74,361,103
Investments (note 3) 43,304,841 59,679,192 22,728,091 125, 712, 124
Receivables, net (note 4) 24,361,511 911,667 2,774,122 28,047,300
Due from other governmental funds (note 5) 1,093,757 725,732 241,289 2,060,778
Due from other nongovernmental funds (note 5) 1,350 1,350
Receivables from other governments (note 4) 10,768,812 5,688,423 1,715,371 18,172,606
Inventories 3,492,464 3,492,464
Real estate held for sale 1,208,129 1,208,129
Other 307,135 597,443 904,578
Total assets $ 23,112,263 $ 24 832 680 $ 66,001182 $ 253 260,432
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 2,457,715 $ 9,604,872 $ 2,924,046 $ 14,986,633
Accrued payroll 6,637,658 1,015,888 7,653,546
Due to other governmental funds (note 5) 548,747 1,001,980 510,051 2,060,778
Due to other nongovernmental funds (note 5) 31,304 31,304
Deferred revenue (note 7) 26,936,536 852,988 2,879,294 30,668,818
Other 2,559,396 302,450 445,133 3,306,979
Total liabilities 39,171,356 11,762,290 7,774,412 58,708,058
Fund balances:
Nonspendable: Inventory 3,492,464 3,492,464
Restricted for:
Debt service (note 10) 19,126,622 19,126,622
Highways, streets and abandoned vehicles 33,504,647 14,838,441 48,343,088
Public access open space 4,192,817 4,192,817
Public safety radio system upgrade 25,000,000 25,000,000
Other 671,088 9,568,558 2,848,612 13,088,258
Committed to:
Budget stabilization 5,016,857 5,016,857
Disaster and emergencies 5,076,587 5,076,587
Lower Puna area 4,176,671 4,176,671
Rental assistance and subsidy 2,037,622 2,037,622
Sanitation 12,021,732 12,021,732
Self insurance 1,252,921 1,252,921
Highways, streets and abandoned vehicles 946,490 2,696,777 3,643,267
Parks and recreational projects 1,866,699 84,809 1,951,508
Zoning change impact mitigation (fair share) 2,624,050 2,624,050
Other 719,163 2,645,626 402,091 3,766,880
Assigned to:
Subsequent year's budget 21,650,000 21,650,000
Other 3,182,390 6,914,320 10,096,710
Unassigned 8,694,320 8,694,320
Total fund balances 53,948,607 83,070,390 58,233,377 195,252,374
Total liabilities and fund balances $ 23 l 12 263 $ 24 832 QBQ $ 66 QQ1,182 $253 26Q 432
See accompanying notes to the basic financial statements.
-32 -
COUNTY OF HAW All
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position
June 30, 2013
Total fund balances -governmental funds $ 195,252,374
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds. These assets
consist of:
Land and improvements 163,565,168
Infrastructure assets, net 274,969,315
Buildings and improvements, net 476,759,437
Equipment, net 48,585,309
Easements, net 3,500,794
Construction work in progress 42,477,332
Total capital assets 1,009,857,355
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) 27,228,807
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 (352,211,857)
Interest on long-term debt (6,119,459)
Capital leases (3,632,420)
Compensated absences (32,165,110)
Claims and judgments (12,404,462)
Landfill costs payable (21,985,000)
Other Postemployment Benefit Obligation (OPEB) (38, 160,502)
Total long-term liabilities ( 466,678,810)
Net position of governmental activities $ 765,659,726
See accompanying notes to the basic financial statements.
-33 -
COUNTY OF HA WAii
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
General
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
-
Revenues
Property taxes $ 201,200,542 $ $ $201,200,542
Public service company taxes 10,766,021 10,766,021
Fuel taxes 6,352,944 6,352,944
Public utility franchise taxes 11,087,369 11,087,369
Licenses and permits 6,392,990 9,598,257 15,991,247
Intergovernmental 50,421,639 11,156,209 18,333,691 79,911,539
Charges for services 2,782,119 14,273,236 17,055,355
Investment earnings (losses) (338,974) (281,305) 2,353 (617,926)
Settlement contributions 12,500,000 12,500,000
Other 2,470,808 578,192 1,349,757 4,398,757
Total revenues 273,695,145 23,953,096 60,997,607 358,645,848
Expenditures
Current:
General government 33,334,811 24,890 33,359,701
Public safety 100,962,048 5,922,594 106,884,642
Highways and streets 2,756,175 15,167,091 17,923,266
Health, education and welfare 7,293,799 16,904,896 24,198,695
Culture and recreation 15,473,939 862,797 16,336,736
Sanitation 870,428 29,801,393 30,671,821
Pension and retirement
contributions (note 13) 25,737,117 4,079,470 29,816,587
Employees' health insurance 23,909,503 2,101,864 26,011,367
Other 2,172,038 819,487 2,991,525
Debt service:
Principal 413,716 25,303,992 25,717,708
Interest 41,116 14,303,986 14,345,102
Capital outlay 9,108,584 39,456,179 48,564,763
Total expenditures 222,073,274 39,456,179 115,292,460 376,821,913
Excess (deficiency) ofrevenues
over (under) expenditures 51,621,871 (15,503,083) (54,294,853) (18,176,065)
(Continued)
34 -
COUNTY OF HAW All
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
(Concluded)
General
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Other Financing Sources (Uses)
Sale of assets $ 1,046 $ $ $ 1,046
Increase in capital leases (notes 8 and 10) 1,306,791 1,306,791
State Revolving Fund loans (note 10) 4,991,351 4,991,351
Issuance of bonds (note 10) 50,480,049 50,480,049
Premium on bonds (note 10) 5,871,519 10,092,820 1,605,461 17,569,800
Refunding bonds (note 10) 39,480,000 8,029,843 47,509,843
Payment to refunded bond escrow
agent (note 10) (45,351,519) (45,351,519)
Retirement ofrefunded debt (note 10) (9,635,304) (9,635,304)
Transfers in (note 5) 3,460,483 47,895,968 51,356,451
Transfers out (note 5) ( 47,895,968) (3,460,483) (51,356,451)
Total other financing sources (uses) (46,588,131) 69,024,703 44,435,485 66,872,057
Net change in fund balances 5,033,740 53,521,620 (9,859,368) 48,695,992
Fund balances at beginning of year 48,726,954 29,548,770 68,092,745 146,368,469
Increase in reserve for inventories 187,913 187,913
Fund balances at end of year $ 53,948,607 $ 83,070,390 $ 58,233,377 $195,252,374
See accompanying notes to the basic financial statements.
-35 -
COUNTY OF HAW All
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2013
Net change in fund balances -total governmental funds $ 48,695,992
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 51,569,008
Dedicated and contributed property 76,587,171
Depreciation expense and loss on disposals (35,548, 168)
Excess of capital outlay over depreciation expense 92,608,011
Borrowings provide current financial resources to governmental funds;
however, issuing debt increases long-term liabilities in the statement
of net position. In the current period, proceeds were received from:
General obligation bonds, net of refunding (45,073,574)
Premium on bond issuance (17,569,800)
Deferred amount on refunding of bonds 682,146
State Revolving Fund loans, net of refunding (4,991,351)
Capital leases (1,306,791)
Total debt proceeds (68,259,370)
Repayment of long-term debt is reported as an expenditure in governmental
funds, but the repayment reduces long-term liabilities in the statement of
net position. In the current year, these amounts consist of:
Bond principal retirement, net of refunding 12,080,025
State Revolving Fund loan repayments/forgiveness 13,159,694
Capital lease payments 1,477,989
Total long-term debt repayment 26,717,708
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 decreased by
this amount this year. (301,574)
(Continued)
-36 -
COUNTY OF HA WAii
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2013
(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 inventories $ 187,913
Increase in Other Postemployment Benefit Obligation (OPEB) (15,820,170)
Decrease in compensated absences 415,469
Increase in claims and judgments (1,957,355)
Increase in landfill closure/postclosure care costs (561,000)
Amortization of premium from bond issuance 2,207,148
Amortization of deferred amount on refunding of bonds (277,496)
Net increase in accrued interest (81,194)
Net additional expenses (15,886,685)
Change in net position of governmental activities $ 83,574,082
See accompanying notes to the basic financial statements.
-37 -
(Continued)
COUNTY OF HA WAil
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis}
Variance
Positive
(Negative}
-
Revenues:
Taxes and assessments:
Property taxes $ 198,300,000 $ 198,590,000 $ 201,200,542 $ 2,610,542
Public service company taxes 9,377,600 9,627,600 10,766,021 1,138,421
Total taxes and assessments 207,677,600 208,217,600 211,966,563 3,748,963
Licenses and permits:
Nonbusiness licenses and permits 2,879,200 2,879,200 3,755,144 875,944
Business licenses 1,522,102 1,522,102 1,090,342 (431,760)
Street use 1,510,000 1,510,000 1,547,504 37,504
Total licenses and permits 5,911,302 5,911,302 6,392,990 481,688
Intergovernmental:
Federal:
Programs for the aged 2,013,996 2,013,996 1,372,809 (641,187)
Community development block grants 2,500,000 2,500,000
HOME program grant 1,050,279 1,050,279
Law enforcement 2,285,050 2,633,107 1,484,359 (1,148,748)
Other 3,265,838 3,833,328 3,458,118 (375,210)
Total federal 7,564,884 12,030,710 9,865,565 {2,165,145)
State:
State General Fund -Act 185,
SLH 1990 17,298,000 17,298,000 17,298,000
Emergency medical services 14,358,592 14,358,592 14,358,592
Other 5,930,857 7,275,959 6,131,710 (1,144,249)
Total State 37,587,449 38,932,551 37,788,302 (1,144,249)
Total intergovernmental revenue 45,152,333 50,963,261 47,653,867 {3,309,394)
Charges for services:
General government 5,372,021 5,372,021 4,842,578 (529,443)
Culture and recreation 1,159,400 1,159,400 965,450 (193,950)
Highways and streets 824,000 824,000 694,821 (129,179)
Public safety 112,123 112,123 114,788 2,665
Total charges for services 7,467,544 7,467,544 6,617,637 (849,907)
Fines and forfeitures 1,388,600 1,388,600 1,425,268 36,668
Rents 186,080 186,080 167,031 (19,049)
38 -
COUNTY OF HA WAii
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis}
Variance
Positive
(Negative}
Revenues (continued):
Interest and penalties $ 100,000 $ 100,000 $ 352,948 $ 252,948
Miscellaneous 5,132,589 5,207,589 5,108,145 (99,444)
Total revenues 273,016,048 279,441,976 279,684,449 242,473
Expenditures:
Current:
General government:
Finance 9,833,353 9,904,648 8,884,850 1,019,798
General government building 4,948,692 4,821,192 4,446,301 374,891
Legislative 3,100,704 3,131,357 2,995,006 136,351
Automotive equipment 5,743,679 5,740,079 4,948,719 791,360
Law 2,532,561 2,532,561 2,229,181 303,380
Research and development 2,951,619 3,071,619 2,774,527 297,092
Planning and zoning 2,847,535 2,847,535 2,667,137 180,398
Mayor's office 1,276,657 1,321,764 1,173,120 148,644
Engineering 1,237,009 1,237,009 1,160,370 76,639
Information technology 1,631,339 1,631,339 1,534,174 97,165
Human resources 1,707,354 1,707,354 1,627,266 80,088
Public works administration 1,215,174 1,218,774 1,162,601 56,173
Elections 868,879 873,104 837,035 36,069
Legislative auditor 786,484 786,484 599,394 187,090
Total general government 40,681,039 40,824,819 37,039,681 3,785,138
Public safety:
Police department 53,948,484 54,280,705 50,565,735 3,714,970
Fire department 37,382,687 37,662,304 35,935,154 1,727,150
Prosecuting attorney 7,830,753 8,169,766 6,579,553 1,590,213
Protective inspection 1,964,771 2,092,271 1,834,010 258,261
Liquor control 1,469,102 1,721,402 1,557,798 163,604
Flood control 309,000 309,000 306,550 2,450
Civil defense agency 1,231,059 1,354,511 955,193 399,318
Animal control 1,982,500 1,982,500 1,870,000 112,500
Total public safety 106,118,356 107,572,459 99,603,993 7,968,466
Highways and streets:
Mass transit 3,300,812 3,300,812 3,174,806 126,006
(Continued)
-39 -
COUNTY OF HA WAii
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Expenditures (continued):
Current (continued):
Health, education and welfare:
Elderly activities $ 3,353,637 $ 3,354,637 $ 3,076,479 $ 278,158
Office of aging 2,323,947 3,225,872 2,435,632 790,240
Education 58,500 58,500 48,690 9,810
Social programs 1,500,000 1,500,000 1,455,250 44,750
Cemeteries 348,944 323,944 292,016 31,928
Physical examination 133,825 133,825 128,355 5,470
Total health, education and welfare 7,718,853 8,596,778 7,436,422 1,160,356
Culture and recreation:
Community music 271,886 240,386 198,212 42,174
Organized recreation:
Maintenance 7,129,510 7,236,510 6,865,167 371,343
Recreation 2,468,345 2,520,334 2,385,206 135,128
Aquatics 2,260,033 2,236,033 2,107,883 128,150
Hoolulu park complex 902,602 906,602 888,845 17,757
Administration 1,518,575 1,432,575 1,315,943 116,632
Children's zoo 638,232 640,232 629,640 10,592
Summer/Intersession 502,045 502,045 335,989 166,056
Culture and arts 230,833 232,333 198,727 33,606
Elderly activities administration 499,285 500,285 433,270 67,015
Total culture and recreation 16,421,346 16,447,335 15,358,882 1,088,453
Sanitation:
Environmental management 1,006,997 1,006,997 872,536 134,461
Pension and retirement contributions 27,396,238 27,396,238 25,174,814 2,221,424
Employees' health insurance 27,405,000 27,405,000 23,912,049 3,492,951
Other postemployment benefits 30,000 30,000 15,833 14,167
Other 4,250,000 3,861,152 2,021,046 1,840,106
Total current 234,328,641 236,441,590 214,610,062 21,831,528
(Continued)
-40 -
COUNTY OF HAW All
General Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
(Concluded)
Original
Budget
Final
Budget
Actual
(Budgetary
Basis}
Variance
Positive
(Negative)
Expenditures (continued):
Capital Outlay:
Community Development Block
grants (HUD) $ $ 2,575,000 $ 2,575,000 $
HOME Program 1,050,279 1,050,279
Other 400,000 400,000
Total capital outlay 4,025,279 4,025,279
Total expenditures 234,328,641 240,466,869 218,635,341 21,831,528
Excess of revenues over expenditures 38,687,407 38,975,107 61,049,108 22,074,001
Other financing sources (uses):
Transfers out:
Housing Fund (838,384) (838,384) (838,384)
Solid Waste Fund (15,736,944) (15,736,944) (15,736,944)
Golf Course Fund (299,000) (299,000) (299,000)
Sewer Connection Loan Fund (100,000) (100,000) (100,000)
Disaster/Emergency Fund (250,000) (250,000) (250,000)
Public Access, Open Space, and Natural
Resources Preservation Fund (3,966,000) (4,256,000) ( 4,024,011) 231,989
Public Access, Open Space, and Natural
Resources Preservation Maintenance Fund (250,000) (220,960) 29,040
Budget Stabilization Fund (250,000) (250,000) (250,000)
Debt Service Fund {35,250,229) {35,250,229) {35,250,229)
Total transfers out (56,690,557) (57,230,557) (56,969,528) 261,029
Total other financing uses (56,690,557) (57,230,557) (56,969,528) 261,029
Excess (deficiency) of revenues and other
sources over (under) expenditures and other uses (18,003,150) (18,255,450) 4,079,580 22,335,030
Fund balance at beginning of year 48,726,954 48,726,954 48,726,954
Fund balance at end of year $ 30,723,804 $ 30,471,504 $ 52,806,534 $ 22,335,030
See accompanying notes to the basic financial statements.
-41 -
COUNTY OF HA WAii
Proprietary Funds
Statement of Net Position
June 30, 2013
Business-type Activities-
Enterprise Funds
Kulaimano
Elderly
Housing
Project
Ouli Ekahi
Affordable
Housing
Project Total
Assets
Current assets:
Cash and cash equivalents (note 3) $ 550,325 $ 259,682 $ 810,007
Restricted cash and cash equivalents (note 3) 12,334 27,114 39,448
Imprest fund (note 3) 50 100 150
Receivables, net (note 4) 310 4,669 4,979
Internal balances, net (note 5) 29,954 29,954
Prepaid expenses 1,501 1,501
Total current assets 594,474 291,565 886,039
Noncurrent assets:
Restricted cash and cash equivalents (note 3) 26,406 26,406
Investments (note 3) 199,430 199,430
Capital assets (note 6):
Land and site improvements 511,000 515,727 1,026,727
Buildings and equipment 1,241,333 469,635 1,710,968
Less accumulated depreciation {1,115,825) {9,982) {1, 125,807)
Total capital assets 636,508 975,380 1,611,888
Total noncurrent assets 835,938 1,001,786 1,837,724
Total assets 1,430,412 1,293,351 2,723,763
Liabilities
Current liabilities:
Accounts payable 3,526 3,526
Due to developer 7,729 7,729
Security deposits payable from restricted assets 12,334 25,700 38,034
Deferred revenue (note 7) 1,232 373 1,605
Interest payable 15,791 15,791
Notes payable, current portion (note 10) 24,071 16,500 40,571
Total current liabilities 56,954 50,302 107,256
Noncurrent liabilities:
Notes payable (note 10) 811,037 445,025 1,256,062
Total liabilities 867,991 495,327 1,363,318
Net Position
Net investment in capital assets (198,600) 513,855 315,255
Unrestricted 761,021 284,169 1,045,190
Total net position $ 562,421 $ 798,024 $ 1,360,445
See accompanying notes to the basic financial statements.
-42 -
COUNTY OF HAW All
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2013
Business-type Activities-
Enterprise Funds
Kulaimano
Elderly
Housing
Project
Ouli Ekahi
Affordable
Housing
Project Total
Operating revenues:
Rental receipts from tenants $ 121,731 $ 303,067 $ 424,798
Rental subsidy from federal government -HUD 123,800 123,800
Laundry receipts 3,454 3,454
Other 3,805 3,805
Total operating revenues 248,985 306,872 555,857
Operating expenses:
Utilities 39,957 84,082 124,039
General and administration 77,049 85,613 162,662
Maintenance and repairs 43,947 66,590 110,537
Depreciation (note 6) 34,422 9,982 44,404
Total operating expenses 195,375 246,267 441,642
Operating income 53,610 60,605 114,215
N onoperating revenues (expenses):
Investment income 1,408 8 1,416
Interest expense (54,375) (54,375)
Other income 342,275 342,275
Total nonoperating revenues (expenses) (52,967) 342,283 289,316
Change in net position 643 402,888 403,531
Net position, beginning of year 561,778 395,136 956,914
Net position, end of year $ 562,421 $ 798,024 $ 1,360,445
See accompanying notes to the basic financial statements.
-43 -
COUNTY OF HAWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2013
Business-type Activities -
Enterprise Funds
Kulaimano
Elderly
Housing
Project
Ouli Ekahi
Affordable
Housing
Project
Total
Cash Flows from Operating Activities
Receipts from tenants $ 125,842 $ 305,761 $ 431,603
Receipts from federal government -HUD 123,800 123,800
Payments to suppliers for goods and services (160,738) (237,901) (398,639)
Net cash provided by operating activities 88,904 67,860 156,764
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable (20,182) (16,905) (37,087)
Issuance of bonds 831,124 831,124
Retirement ofrefunded debt (831,124) (831, 124)
Interest paid on notes payable (34,600) (34,600)
Purchase of capital assets (7,653) (3,055) (10,708)
Other payments (31,304) (31,304)
Net cash used in capital and related financing activities (93,739) (19,960) (113,699)
Cash Flows from Investing Activities
Purchase of investments (200,000) (200,000)
Proceeds from maturities of investments 400,000 400,000
Interest on investments 3,058 8 3,066
Net cash provided by investing activities 203,058 8 203,066
Net increase in cash and cash equivalents 198,223 47,908 246,131
Cash and cash equivalents at beginning of year (including
restricted cash and cash equivalents) 364,486 265,394 629,880
Cash and cash equivalents at end of year (including
restricted cash and cash equivalents) $ 562,709 $ 313,302 $ 876,011
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income $ 53,610 $ 60,605 $ 114,215
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 34,422 9,982 44,404
Change in assets and liabilities:
Receivables, net 667 (790) (123)
Prepaid expenses 120 120
Accounts and other payables 309 (316) (7)
Deferred revenue {224) {l,621) {l,845)
Net cash provided by operating activities $ 88,904 $ 67,860 $ 156,764
Supplemental disclosure of cash flow information -Interest paid $ 34,600 $ $ 34,600
Noncash investing, capital and financing activities:
Net decrease in fair value of investments $ 570 $ $ 570
Acquisition of housing project in exchange
for assumption of debt $ $ 478,430 $ 478,430
See accompanying notes to the basic financial statements.
44 --
COUNTY OF HA WAii
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2013
-
Private-
Purpose
Trusts
Agency
Funds
Assets
Cash and cash equivalents (note 3) $ 1,741,254 $ 3,094,097
Investments (note 3) 3,030,761 189,525
Receivables:
Due from other agency funds 2,542
Other receivables 463 72,500
Total receivables 463 75,042
Total assets 4,772,478 $ 3,358,664
Liabilities
Due to other agency funds 2,542
Accrued liabilities 2,699,304
Advances payable 239,724
Assets held for the benefit of improvement districts 417,094
Total liabilities $ 3,358,664
Net Position
Held in trust for other parties 4,772,478
Total net position $ 4,772,478
See accompanying notes to the basic financial statements.
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COUNTY OF HAW Aii
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2013
Private-
Purpose
Trusts
-
Additions
Contributions:
Puna Geothermal Venture $ 50,000
Investment earnings:
Net increase in fair value of investments 29,967
Dividends 55,825
Interest 2,100
Total additions 137,892
Deductions
Grant payments 290,734
Total deductions 290,734
Change in net position (152,842)
Net position, beginning of year 4,925,320
Net position, end of year $ 4,772,478
See accompanying notes to the basic financial statements.
46-
COUNTY OF HA WAii
Notes to the Basic Financial Statements
June 30, 2013
The accounting policies of the County of Hawai'i (the County) conform to U.S. generally accepted
accounting principles (GAAP) as applicable to local governmental units. The following notes to
the basic financial statements are an integral part of the County's Comprehensive Annual Financial
Report (CAFR).
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Financial Reporting Entity
The County has implemented Governmental Accounting Standards Board Statement No. 14,
The Financial Reporting Entity (GASB Statement No. 14), Statement No. 39, Determining
Whether Certain Organizations Are Component Units (GASB Statement No. 39) and
Statement No. 61, The Financial Reporting Entity: Omnibus, an amendment of GASB
Statements No. 14 and 34 (GASB Statement No. 61). All organizations, activities or functions
that meet the criteria in GASB Statement No. 14, No. 39 and No. 61 for inclusion in the
reporting entity are included in the County's basic financial statements.
Primary Government The County operates under the Mayor-Council form of government
under a charter that became effective on January 2, 1969, and was amended in 1979, 1982,
1990 and 2000. The County's operations are organized by the following functions: general
government; public safety; highways and streets; sanitation; health, education and welfare;
culture and recreation; pension and retirement contributions; health fund; miscellaneous;
capital outlay; and debt service. The State ofHawai'i (the State) assumes full responsibility
for several major functions usually performed by local governments, including education,
welfare, health and judicial functions. There are no separate city, county or township
governments nor any school districts, special districts, authorities or public corporations with
overlapping authority.
GASB Statement No. 14, as amended by GASB Statement No. 61, defines component units as
legally separate organizations for which the elected officials of the primary government are
financially accountable or for which the primary government may determine, through exercise
of management's professional judgment, that the inclusion of an organization that does not
meet the financial accountability criteria is necessary in order to prevent the reporting entity's
financial statements from being misleading. "Financial accountability" is the level of
accountability that exists if a primary government appoints a voting majority of an
organization's governing board or if the organization is fiscally dependent on the primary
government and is either able to impose its will on that organization or there is a potential for
the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. A primary government has the ability to impose its will on an
organization ifit 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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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, No. 39 and No. 61, these basic
financial statements present the County of Hawai'i (the primary government) and its
component unit, the Department of Water Supply (the Department). This component unit is
included in the County's reporting entity because of its financial relationship with the County.
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,
Hawai'i 96720.
Basic Financial Statements
The basic financial statements include both government-wide (based on the County as a
whole) and fund financial statements. Both the government-wide and fund financial
statements (within the basic financial statements) categorize primary activities as either
governmental or business-type. In the government-wide statement of net position, both the
governmental and business-type activities columns (a) are presented on a consolidated basis
by column, (b) and are reflected, on a full accrual, economic resource basis, which
incorporates long-term assets and receivables as well as long-term debt and obligations.
The government-wide statement of activities reflects both the gross and net costs per
functional category (general government, public safety, highways and streets, etc.) which are
otherwise being supported by general government revenues (property taxes, certain
intergovernmental revenues, etc.). The statement of activities reduces gross expenses
(including depreciation) by related program revenues, operating and capital grants. The
program revenues must be directly associated with the function (general government, public
safety, highways and streets, etc.) or a business-type activity. The operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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.
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 activities column, a
reconciliation is presented on the page following each statement, which briefly explains the
adjustments necessary to transform the fund based financial statements into the governmental
activities column of the government-wide presentation.
The County's fiduciary funds are presented in the fund financial statements by type (private
purpose and agency). Since by definition these assets are being held for the benefit of a third
party (private parties, state government, etc.) and cannot be used to address activities or
obligations of the government, these funds are not incorporated into the government-wide
statements.
Government-wide and fund financial statements-The government-wide financial statements
(i.e., the statement of net position and the statement of changes in net position) 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
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COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
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
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
Analysis -for State and Local Governments, sets forth minimum criteria (percentage of the
assets, liabilities, revenues or expenditures/expenses of either fund category or the
governmental and enterprise combined) for the determination of major funds. The nonmajor
funds are combined in a column in the fund financial statements and detailed in the combining
section.
The County reports the following major governmental funds:
General Fund -The general fund is the general operating fund of the County. It is used
to account for all activities of the general government, except those required to be
accounted for in other funds.
Capital Projects Fund-Used to account for the costs of constructing County capital
improvements financed with general obligation bond proceeds, federal and state grants,
and general and special revenue fund revenues. The capital projects fund is used to
account for financial resources to be used for the acquisition or construction of major
general government capital facilities and infrastructure (other than those financed by
proprietary funds and trust funds) when separate project centers are needed to control
costs.
The County reports the following major proprietary funds:
Kulaimano Elderly Housing Project-Used to account for the operation of a rental
housing project for low-income senior citizens located north of Hilo.
Ouli Ekahi Affordable Housing Project-Used to account for the operation of a 33-unit
single-family affordable rental housing project located in Waimea.
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COUNTY OF HA WAil
Notes to the Basic Financial Statements
June 30, 2013
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 Hawai'i.
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. 18 Fund
• Improvement District Revolving Fund
• Performance and Refundable Deposits Fund
• Payroll Clearance Fund
• Flexible Spending Account
• Lapsed Warrants Fund
• Non-Profit License Plates Fund
• Organ and Tissue Education Fund
• Business Improvement District 1-Kailua
Basis of Accounting
Basis of accounting refers to the period in which revenues and expenditures (or expenses) are
recognized in the accounts and reported in the basic financial statements. Basis of accounting
relates to the timing of the measurements made, regardless of the measurement focus applied.
The government-wide financial statements and the proprietary, fiduciary and component unit
fund financial statements are presented on an accrual basis of accounting. The governmental
funds in the fund financial statements are presented on a modified accrual basis.
Accrual Basis -Revenues are recognized when earned and expenses are recognized when the
related obligation is incurred.
Modified Accrual Basis -Revenues are recorded when susceptible to accrual (that is, both
measurable and available). "Measurable" means the amounts are determinable. "Available"
means the amounts are collectible within the current period or soon enough thereafter (one
year for intergovernmental revenues) to be used to pay liabilities of the current period.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Licenses and permits, charges for current services, fines and forfeitures, penalties and
miscellaneous revenues are recorded as revenues when received in cash because they are
generally not measurable until actually received. Real property taxes and State Revolving
Fund loan proceeds are considered available when collected.
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 ifthe 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.
The County applies all applicable GASB pronouncements, including the adoption of GASB
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained
in Pre-November 30, 1989 FASB (Financial Accounting Standards Board) and AICP A
(American Institute of Certified Public Accountants) Pronouncements.
Encumbrances
The general, special revenue, and capital projects funds follow encumbrance accounting
under which purchase orders, contracts and other commitments are recorded as an obligation
of fund balance and provide authority for the carryover of appropriations to the subsequent
year in order to complete these transactions. Encumbrances outstanding at year-end are
included in the respective fund balance categories as appropriate and do not constitute
expenditures or liabilities because the commitments will be honored during the subsequent
year.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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 certificates of deposit, repurchase agreements, and securities with
original maturities exceeding three months. These include participating investment contracts
(U.S. government sponsored agency issues and negotiable certificates of deposit) as well as
nonparticipating investment contracts (time certificates of deposit and repurchase
agreements). Both categories of investments are stated at fair value (see Note 3). Valuations
of investments in government sponsored enterprises such as Federal National Mortgage
Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are
based on quoted market rates. Valuations of certificates of deposits are based on cost, which
approximate fair market value, as they almost invariably are held to maturity. 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 I each year on assessed valuation as of
January I. 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 I 0% of the amount due.
Assessments are based on I 00% of estimated fair market values prior to the application of
exemptions or preferential assessments.
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 Hawai'i Revised Statutes requires that liquor license revenues collected be
used only for costs and expenses directly relating to operational and administrative costs
actually incurred by the liquor commission collecting such fees. The unexpended fees at
June 30, 2013 of $671,088 are reflected as a restriction of general fund balance.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and
similar items), are reported in the applicable governmental or business-type activities columns
in the government-wide financial statements. Capital assets are defined by the County as
assets with an initial, individual cost of more than $1,000 and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at 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 and enterprise fund 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
Ground and site improvements 20 to 50 years
Equipment 5 to 40 years
Easements Dependent on terms of easement agreement
Long-term Obligations
The County reports long-term debt of governmental funds at face value on the government-
wide statement of net position. Certain other governmental fund obligations not expected to
be financed with current available resources are also reported on the government-wide
statement of net position. Long-term debt and other obligations financed by the proprietary
funds are reported as liabilities in those funds.
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
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
an employee can accumulate. Both compensatory time off and vacation credits are converted
to pay upon termination of employment.
A liability for these amounts is reported in the governmental funds only if they have matured,
for example, as a result of employee resignations and retirements. All vacation and
compensatory time off pay is accrued in the government-wide statement of net position along
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon termination of employment; therefore there is no related
liability. However, a County employee who retires or leaves government service in good
standing with 60 days or more of unused sick leave is entitled to additional service credit in
the Employees' Retirement System of the State ofHawai'i. Accumulated sick leave at
June 30, 2013 totaled $65,452,000 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 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 ofHawai'i
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).
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.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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.
Fund Balances
When both restricted and unrestricted fund balances are available for use, it is the County's
policy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts, and then
unassigned amounts when expenditures are incurred for purposes for which amounts in any of
those unrestricted fund balance classifications can be used.
The County reports the following classifications:
Nonspendable Fund Balance-Nonspendable fund balances are amounts that cannot be
spent because they are either not in spendable form, or, for legal or contractual reasons,
must be kept intact. The County has inventory included in their nonspendable fund
balance.
Restricted Fund Balance -Constraints placed on the use of these resources are either
externally imposed by creditors (such as through debt covenants), grantors, contributors
or other governments or are imposed by law (under the Hawaii Revised Statutes or
County of Hawaii Charter).
Committed Fund Balance -Committed Fund Balances are amounts that can only be used
for specific purposes as a result of constraints imposed by the County Council via
ordinances and the County Code. The committed fund balance of the General Fund
includes the portion of fund balance committed to budget stabilization. The budget
stabilization portion is authorized under County Code §2-19 to §2-223 and additions are
made via the County budget or subsequent budget amendments. The fund balance may
only be used when there is a reduction in budgeted revenue and the director of finance
determines that such use is necessary to prevent a reduction in the level of public
services.
Assigned Fund Balance -Assigned fund balances are amounts that are constrained by the
County's intent as determined by the Mayor but are neither restricted nor committed.
The County's only assigned fund balances are in the General Fund and Capital Projects
Fund and the majority consists of the portion of fund balance that is intended to balance
the subsequent year's budget.
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COUNTY OF HA WAii
Notes to the Basic Financial Statements
June 30, 2013
Unassigned Fund Balance -This is the residual classification of the General Fund and the
Capital Projects Fund.
Net Position
When both restricted and unrestricted net position are available for use, it is the County's
policy to use restricted net position first, and then unrestricted net position.
New Accounting Pronouncements
In November 2010, GASB issued Statement No. 60, Accounting and Financial Reporting for
Service Concession Arrangements. The objective of this Statement is to improve financial
reporting by addressing issues related to service concession arrangements. The requirements
of this Statement were effective for financial statements for periods beginning after December
15, 2011 and did not have an impact on the County's financials for the year ending June 30,
2013.
In December 2010, GASB issued Statement No. 61, The Financial Reporting Entity:
Omnibus, an amendment of GASE Statements No. 14 and 34 amending the requirements of
Statement No. 14, The Financial Reporting Entity, and Statement No. 34, Basic Financial
Statements -and Management's Discussion and Analysis -for State and Local Governments.
This Statement improves the financial reporting for governmental entities, which is comprised
of the primary government and related entities (component units). The Statement amends the
criteria for inclusion of component units in the financial reporting entity. The provisions of
this statement were effective for the County for periods beginning after June 15, 2012 and did
not have an impact on the County's financials for the year ending June 30, 2013.
In December 2010, GASB issued Statement No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre-November 30, 1989 FASB (Financial Accounting
Standards Board) and AI CPA (American Institute of Certified Public Accountants)
Pronouncements. This Statement will make it easier for preparers of state and local
government financial statements to find relevant authoritative guidance from one single
source. The provisions for this Statement were effective for the County for periods beginning
after December 15, 2011 and did not have an impact on the County's financials for the year
ending June 30, 2013.
In June 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of
Resources, Deferred Inflows of Resources, and Net Position. This Statement provides
financial reporting guidance for deferred outflows of resources, deferred inflows of resources,
and net position. The provisions for this Statement were effective for the County for periods
beginning after December 15, 2011. The County implemented this Statement in fiscal year
ended June 30, 2013.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
In March 2012, GASB issued Statement No. 65, Items Previously Reported as Assets and
Liabilities. The objective of this Statement is to clarify the appropriate reporting of deferred
outflows and deferred inflows of resources to ensure consistency in financial reporting. The
provisions for this Statement are effective for the County for periods beginning after
December 15, 2012. The County has not yet determined the effect this Statement will have
on its financial statements.
In March 2012, GASB issued Statement No. 66, Technical Corrections -2012. The
objective of this Statement is to enhance usefulness of financial reports by resolving
conflicting accounting and financial reporting guidance that could diminish the consistency of
financial reporting. The provisions for this Statement are effective for the County for periods
beginning after December 15, 2012. The County has not yet determined the effect this
Statement will have on its financial statements.
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for
Pensions. The Statement revises and establishes new financial reporting requirements for
most governments that provide their employees with pension benefits. The requirements for
this Statement are effective for the County for periods beginning after June 15, 2014. The
County has not yet determined the effect this Statement will have on its financial statements.
In January 2013, GASB issued Statement No. 69, Government Combinations and Disposals
of Government Operations. The objective of this Statement is to improve financial reporting
by addressing accounting and financial reporting for government combinations and disposals
of government operations. The requirements for this Statement are effective for the County
for periods beginning after December 15, 2013. The County has not yet determined the effect
this Statement will have on its financial statements.
In April 2013, GASB issued Statement No. 70, Accounting and Financial Reporting for
Nonexchange Financial Guarantees. The requirements of this Statement will enhance
comparability of financial statements among governments by requiring consistent reporting by
those governments that extend nonexchange financial guarantees and by those governments
that receive nonexchange financial guarantees. The requirements for this Statement are
effective for the County for periods beginning after June 15, 2013. The County has not yet
determined the effect this Statement will have on its financial statements.
In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date. The objective of this Statement is to improve
accounting and financial reporting by addressing an issue in Statement No. 68, Accounting
and Financial Reporting for Pensions, concerning transition provisions related to certain
pension contributions made to defined benefit pension plans prior to implementation of that
Statement by employers and nonemployer contributing entities. The requirements for this
Statement are effective for the County for periods beginning after June 15, 2014. The County
has not yet determined the effect this Statement will have on its financial statements.
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COUNTY OF HAW All
Notes to the Basic Financial Statements
June 30, 2013
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
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 2012-2013 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 $6. 7 million in the general fund and $2.4
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 and Community Benefits Fund, Beautification Fund,
Hawaii County Housing Agency Fund 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.
-59 -
$52.806.534
COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
• 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.
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, 2013:
Ending fund balance -GAAP basis $53,948,607
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 3,837,693
Ending encumbrances and unexpended allotments (3, 182,390)
Other adjustments (1,797,376)
Ending fund balance -Non-GAAP budgetary basis
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. Under Section 46-50 of the Hawaii Revised Statutes, legally authorized investments
include obligations of or guaranteed by the U.S. government, obligations of the State,
federally insured savings and checking accounts, time certificates of deposit, and repurchase
agreements with federally insured financial institutions.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Cash
The County maintains a number of checking and savings accounts for various funds and with
various financial institutions. Bank deposits are under the custody of the Director of Finance.
For financial statement reporting purposes, cash and short-term investments consist of cash
and money market accounts. Cash and short-term investments also include repurchase
agreements, certificates of deposit, and government sponsored securities with original
maturities of three months or less.
The carrying amount of the County's deposits (cash, time certificates of deposit, and money
market accounts) as of June 30, 2013 was $155,705,150 for the primary government and
$4,835,351 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 $170,335,603 at June 30, 2013. Of that amount, $170,071,430
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 $264, 173
represent deposits held by a management agent and were uncollateralized. Accordingly, these
deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in the
event of a bank failure, the County's deposits may not be returned to it. For checking
accounts, time certificates of deposit, and repurchase agreements, the County requires, in
accordance with State statutes, that the depository banks pledge collateral based on the
available bank balances 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 (equivalent to the rating in U.S.
Treasuries), repurchase agreements and certificates of deposit, while the fiduciary funds also
hold equity securities.
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COUNTY OF HAW Aii
Notes to the Basic Financial Statements
June 30, 2013
The County's investments and maturities at June 30, 2013 are as follows:
Maturity (in years)
Fair Value Less than 1 1 - 5
Investments -Primary Government:
Certificates of deposit $ 80,508,706 $ 57,613,713 $22,894,993
Government sponsored securities 45,402,848 45,402,848
$ 125.911.554 $ 57.613.713 $68.297.841
Investments -Fiduciary Funds:
Government sponsored securities
Equity securities
$ 1.741.343 ==$======= $ 1.741.343
$ 1.289.418
Investments -Agency Funds:
Government sponsored securities $ 189.525 $ $ 189.525
Interest Rate Risk: The County minimizes its exposure to interest rate risk by limiting the
maturities of investments to five years or less in compliance with state statute. The County's
policy is to hold investments until maturity and does not engage in trading for capital gains.
Credit Risk: The County's investment portfolio consists of U.S. government or agency
obligations, time certificates of deposit and repurchase agreements. These investments are
either insured by the FDIC, secured by collateral or carry a credit rating equivalent to U.S.
Treasuries.
Custodial Risk: Custodial risk is the risk ofloss from the failure of the counterparty, which is
defined as any entity that obtained an investment on behalf of the County. All of the
County's deposits including repurchase agreements are secured by collateral which is kept by
a third party custodian. Broker-dealers utilized by the County are members of the Securities
Investor Protection Corporation, and all investment securities are held in the County's name.
Concentration of Credit Risk: State law limits deposits to no more than 60% of the total in
any one depository. The County seeks to further diversify its portfolio by purchasing from
different issuers, by purchasing different types of investments and by purchasing investments
at different maturities. The County also purchases its investments from a number of banks
and broker-dealers both located locally and on the mainland. As of June 30, 2013,
investments were distributed as follows: Central Pacific Bank, 38.3%; FTN Financial, 15.8%;
Multi Bank Securities, 14.0%; Stifel Nicolaus, 9.7%; First Hawaiian Bank, 6.5%; Raymond
James, 4.8%; Bank of Hawaii, 3.9%; Hawaii National Bank, 3.5%; Territorial Savings Bank,
3.5%.
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COUNTY OF HA WAil
Notes to the Basic Financial Statements
June 30, 2013
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets for the primary
government at June 30, 2013 amounted to $115,921,348.
Construction related contributions restricted to various capital improvement projects and fuel
tax funds received are recorded as restricted assets in the Capital Projects Fund. Such funds
totaled $75,092,166 at June 30, 2013.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to
debt service related payments and amounted to $19,418,552.
Cash in the Highway Fund, Bikeway Fund and Beautification Fund are restricted to costs
incurred relating to highways and streets and the beautification of such items and amounted to
$16,717,909.
The restricted cash in the General Fund was comprised of cash restricted to costs incurred to
administer the liquor commission and cash restricted to the acquisition of lands or property
entitlements for public outdoor recreation and education. Such amounts totaled $671,088 and
$3,955,779, respectively.
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 $12,334 and $27,114, respectively, at June 30, 2013.
An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project
pursuant to an agreement with the Hawaii Housing Finance and Development Corporation,
who are the holders of the project's note. This restricted reserve amounted to $26,406 at June
30, 2013.
-63 -
$35, 130,323 $6,600,090
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
4. RECEIVABLES
Receivables as of June 30, 2013, for the County's individual major funds and other funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Governmental activities:
General
Fund
Capital
Projects
Fund
Other
Governmental
Funds
Total
--
-
Real property taxes $25,213,665 $ $ $25,213,665
Accounts receivable:
Sewer 2,218,373 2,218,373
Solid waste 2,280,764 2,280,764
Capital projects 911,667 911,667
Intergovernmental 10,768,812 5,688,423 1,715,371 18,172,606
Gross receivables 35,982,477 6,600,090 6,214,508 48,797,075
Less: allowance for
uncollectibles (852,154) (1,725,015) (2,577, 169)
Net total receivables $4,489,493 $46,219,906
During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf
oflmprovement District No. 18, an agency fund. On February 12, 2013 bonds were issued to
refund the outstanding principal balance of $1,345,945 for the Improvement District. At June
30, 2013, the outstanding balance of$1,345,945 is reflected in the government-wide
statement of net position as a receivable (see Note 10).
Business-type activities:
Enterprise
Funds
Accounts receivable:
Rent $4,810
Other 169
Gross receivables 4,979
Less: allowance for
uncollectibles
Net total receivables $ 4,979
64 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
5. INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30, 2013:
Receivable Fund Payable Fund Amount
General fund Capital projects fund $ 870,680
Other governmental funds 223,077
1,093,757
Capital projects fund General fund 456,714
Other governmental funds 269,018
725,732
Other governmental funds General fund 92,033
Capital projects fund 131,300
Other governmental funds 17,956
241,289
Total $2.060.778
Other governmental funds Enterprise funds $1,350
Enterprise funds General Fund $31,304
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, 2013 consisted of the following:
Transfers out:
General
Fund
Other
Governmental
Funds Total
Transfers in:
Capital Projects Fund $ $3,460,483 $ 3,460,483
Other governmental funds 47,895,968 47,895,968
$47,895,968 $3,460,483 $51,356,451
The interfund transfers noted above include transfers from the General Fund to provide
support for various County programs and to provide resources for the payment of debt
services. In addition, some of the other governmental funds have made transfers to the capital
projects fund for the construction of various projects.
-65 -
COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2013 for the County was as follows:
Balance
July 1,
2012 Additions
Retirements/
Transfers
Balance
June 30,
2013
Governmental activities:
Capital assets not being depreciated:
Land and
improvements $ 129,569,750 $ 33,995,418 $ $ 163,565,168
Easements 3,012,778 414,800 3,427,578
Construction work in
progress 31,937,409 38,704,214 (28,164,291) 42,477,332
Total capital assets not
being depreciated 164,519,937 73,114,432 (28,164,291) 209,470,078
Capital assets being depreciated:
Buildings and
improvements 527,813,137 30,391,984 (1,243,351) 556,961,770
Equipment 120,305,392 6,301,956 (1,522,455) 125,084,893
Easements 439,300 439,300
Infrastructure 430,483,939 46,512,098 476,996,037
1,079,041, 768
Total capital assets
being depreciated 83,206,038 (2,765,806) 1,159,482,000
Less accumulated depreciation for:
Buildings and
improvements (72,331,213) (7,939,154) 68,034 (80,202,333)
Equipment (70,215,601) (7,632,077) 1,348,094 (76,499,584)
Easements (219,650) (146,434) (366,084)
Infrastructure (183,545,897) (18,480,825) (202,026, 722)
Total accumulated
depreciation (326,312,361) (34,198.490) 1,416,128 (359,094, 723)
Total capital assets
being depreciated,
net 752,729,407 49,007,548 (1,349,678) 800,387,277
Governmental
activities capital
assets, net $217,242,344 $122,121,980 ($22,513 ,969) $1,002,857,355
-66 -
COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
Balance
July 1,
2012 Additions
Retirements/
Transfers
Balance
June 30,
2013
Business-type activities:
Capital assets not being depreciated:
Land $ 753,877 $ $ $ 753,877
Capital assets being depreciated:
Buildings and
improvements 1,136,008 457,179 1,593,187
Ground and site
improvements 261,000 11,850 272,850
Equipment 103,024 20,109 (5,352) 117,781
Total capital assets
being depreciated 1,500,032 489,138 (5,352) 1,983,818
Buildings and
improvements (806,278) (32,234) (838,512)
Ground and site
improvements (193,420) (4,150) (197,570)
Equipment (87,057) (8,020) 5,352 (89,725)
Total accumulated
depreciation (1,086,755) (44,404) 5,352 ( 1,125' 807)
Total capital assets
being depreciated,
net 413,277 444 734 858,011
Business-type
activities capital
assets, net $1,167,154 $444 734 $ $1,611,888
The County received $12.5 million as a partial settlement from a developer that did not
complete the required infrastructure for their development. The funds are to be used by the
County to construct the roadway that was initially required of the developer. As of June 30,
2013, approximately $160,000 was expended and capitalized.
-67 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Depreciation expense was charged to functions/programs of the primary government a
follows:
Governmental activities:
General government $ 2,974,208
Public safety 2,950,175
Highways and streets 19,888,722
Sanitation 4,851,858
Health, education and welfare 1,817,852
Culture and recreation 1,715,675
s
Total depreciation expense -governmental activities $34. 198.490
Business-type activities:
Kulaimano Elderly Housing Project $34,422
Ouli Ekahi Affordable Housing Project 9,982
Total depreciation expense -business-type activities 44.404
7. DEFERRED REVENUE:
Deferred revenue consists of the following at June 30, 2013:
Governmental activities:
General
Fund
Capital
Projects
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Real property taxes $ 24,881,442 $ $ $ 24,881,442
Liquor control revenue 198,310 198,310
Sewer revenue 1,351,064 1,351,064
Housing revenue 93,174 93,174
Solid waste revenue 1,435,056 1,435,056
Intergovernmental 1,856,784 852,988 2,709,772
Total presented in
fund financial
statements 26,936,536 852,988 2,879,294 30,668,818
Less adjustments for
accrual of revenues (24,361,511) (2,867,296) (27,228,807)
Total government-
wide financial
statements $ 2,575,025 $ 852,988 $ 11,998 $ 3,440,011
-68 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Business-type activities:
Enterprise
Funds
Unearned rental income $1.605
8. LEASES
The County leases machinery and equipment under noncancellable leases expiring at various
dates through February 2018. 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 $6,697,301 and $1,609,301, respectively,
and the related present value of the remaining obligations under the capital leases amounting
to $3,632,420 at June 30, 2013 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 July 2029. Expenditures for such operating leases were
$1,847,541 for the fiscal year ended June 30, 2013.
The future minimum payments under capital and operating leases at June 30, 2013 are as
follows:
Capital
Leases
Operating
Leases
-
Year Ending June 30:
2014 $1,409,426 $1,473,506
2015 1,105,824 1,305,269
2016 719,390 1,251,840
2017 405,355 966,758
2018 135,432 899,477
2019 -2023 1,342,570
2024 -2028 135,883
2029 -2030 16.422
Total minimum lease payments 3,775,427 $7.391.725
Less amount representing
interest (143,007)
Obligations under capital leases $3.632.420
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
69 -
COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste, the County recognizes a portion of the closure and postclosure care costs in each
operating period. The liability for these costs is included in the government-wide statement of
net position. The amount recognized each year is based on the landfill capacity used as of the
statement of net position date. At June 30, 2013, the County recognized a liability of
$13,711,000, based on the use of93% of the estimated capacity of the landfill. During the
fiscal year ended June 30, 2013, there were no expenditures incurred for the closure of the
landfill. The remaining $1,019,000 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 two years. These amounts are based on what it would cost to
perform the required closure and postclosure care in 2013. Actual costs at that time may be
higher due to inflation, changes in technology, or changes in regulations.
Landfill capacity estimates are based on volumes going into the landfill subsequent to the last
available engineer's calculation. The volumes going into the landfill do not account for
decomposition, settlement, and corrosion; therefore the estimates are revised when new
engineering calculations, based on aerial photos and surveys, are available.
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 $16,300,000, based on what it
would cost to perform the required closure and postclosure care in 2013. Actual costs may be
higher due to inflation, changes in technology, or changes in regulations. Through
June 30, 2013, $8,026,000 was spent on closure and postclosure care of the landfill. The
remaining estimated liability of $8,274,000 is included in the government-wide statement of
net position. During the year ended June 30, 2013, $328,000 was spent on closure of the
landfill. The County is providing financial assurance for postclosure care and remediation
through self insurance as explained below.
Pu'uanahulu In May 1993, the County contracted with a private company to construct and
operate a new landfill on County land at Pu'uanahulu in West Hawai'i. The present contract
calls for County employees to perform the daily operations of the landfill, and for the private
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terms of the contract, the County has no responsibility for
-70 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
remediation, closure or postclosure care. Accordingly, no liability for this landfill is included
in the County's financial statements.
Financial Assurance For fiscal year 2013, 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
governmental activities section of the government-wide statement of net position for the
County for the fiscal year ended June 30, 2013:
Bonds
Authorized
Issue
Amount
Bond Balance
Jul)' I 2012 Issues Retirements
Bond Balance
June 30 2013
Due Within
One Year
1993 Ref &PI $86,770,000 $ 5,945,000 $ ($ 5,945,000) $ $
2003 Series A 36,310,000 27,070,000 (25,275,000) 1,795,000 1,795,000
2004 Series A 30,000,000 23,990,000 (21,100,000) 2,890,000 1,410,000
2004 Ref Series B 19,545,000 8,870,000 (2,055,000) 6,815,000 2,160,000
2004 Ref Series C 5,050,140 1,678,768 (539,604) 1,139,164 558,052
2004 PI Series A 2,776,400 1,952,523 (1,952,523)
2004 PI Series B 920,000 838,003 (838,003)
2006 Series A 25,000,000 20,797,500 (972,500) 19,825,000 1,022,500
2007 Series A 85,000,000 73,570,000 (3,200,000) 70,370,000 3,360,000
2007 Series B 20,820,000 15,470,000 (1,925,000) 13,545,000 2,000,000
2007 Series C 10,787,388 9,991,704 (828,294) 9,163,410 860,904
2008 Series A 50,000,000 46,600,000 (1,810,000) 44,790,000 1,885,000
2010 Series A 26,493,750 26,493,750 26,493,750
2010 Series B 18,506,250 18,506,250 18,506,250
2013 Series A 58,509,892 58,509,892 58,509,892 1,660,929
2013 Series B 21,010,000 21,010,000 21,010,000
2013 Series C 18 470 000 18 470 000 18 470 000
515,968,820 281,773,498 97,989,892 (66,440,924) 313,322,466 16,712,385
Add unamortized
premium 25,152,930 5,579,965 17,569,800 (2,207,148) 20,942,617 1,453,119
Less deferred amount
on refunding (3 510 905) (! 184,914) (682 146) 277 496 (! 589 564) (306 272)
$531610 845 $286 168 542 $114 871546 ($68 31Q 516) $332 615 512 $11852 232
-71 -
COUNTY OF HA WAil
Notes to the Basic Financial Statements
June 30, 2013
The 2010 Series B bonds were issued as bonds designated as "Recovery Zone Economic
Development Bonds" under the American Recovery and Reinvestment Act of 2009. The
County will receive a cash subsidy payment from the United States Treasury equal to 45% of
the interest payable on the Series B bonds.
General obligation bonds payable reported in the governmental activities section on the
government-wide statement of net position at June 30, 2013 are comprised of the following
individual issues:
Public improvement (Pl) and/or refunding bonds:
2003 Series A at 2.5% to 5.125%, due through 2013 $ 1,795,000
2004 Series A at 3.25% to 5.25%, due through 2014 2,890,000
2004 Refunding Series Bat 3.5% to 5.0%, due through 2015 6,815,000
2004 Refunding Series Cat 3.25% to 3.7%, due through 2014 1,139,164
2006 Series A at 4.0% to 5.0%, due through 2026 19,825,000
2007 Series A at 4.0% to 5.0%, due through 2027 70,370,000
2007 Series Bat 3.75% to 5.0%, due through 2018 13,545,000
2007 Series Cat 4.0% to 5.0%, due through 2021 9,163,410
2008 Series A at 4.0% to 6.0%, due through 2028 44,790,000
2010 Series A at 1.7% to 5.0%, due through 2030 26,493,750
2010 Series Bat 3.335% to 6.1%, due through 2030 18,506,250
2013 Series A at 2.0% to 5.0%, due through 2033 58,509,892
2013 Series Bat 3.0% to 5.0%, due through 2024 21,010,000
2013 Series Cat 4.0% to 5.0%, due through 2025 18,470,000
Total general obligation bonds payable $313.322.466
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
Governmental Activities
Fiscal year ending June 30: Principal Interest
2014 $ 16,712,385 $ 14,551,304
2015 19,396,450 13,558,978
2016 19,640,854 12,676,441
2017 18,052,456 11,811,628
2018 18,937,148 10,918,429
2019-2023 96,093,588 41,713,484
2024-2028 91,965,835 19,591,208
2029-2033 32,523, 750 3,443,954
Total $313.322.466 $128.265.426
-72 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Refunded Bonds
2013 Series A In fiscal year 2013, the County issued a mixture of refunding bonds,
$8,029,843 and new bonds, $50,480,049 as the 2013 Series A general obligation bond issue.
The refunding bonds have a true interest cost of 1.567% and were issued to current refund the
$8,029,843 ofloans from the State Water Pollution Control Revolving Fund (SRF) and
general obligation bonds previously issued on behalf of Improvement District No. 18.
The County's total debt service requirements over the next seventeen years will decrease by
$1,704,150 as a result of the refunding, and the net economic gain (difference between the
present values on the old and new debt) after taking into account all allocable costs of
issuance of the bonds was $1,516,044.
2013 Series B Also, in fiscal year 2013, the County issued $21,010,000 in refunding bonds as
the 2013 Series B general obligation bond issue. The refunding bonds have a true interest cost
of 1.639% and were issued to advance refund $23,550,000 of the total callable bonds
outstanding of the 2003 Series A general obligation bond issue.
The bonds refunded bore interest at rates ranging from 3.000% to 5.000%. The par amount of
$21,010,000 plus a premium of $3,216,926, minus $107,916 in underwriting fees, insurance
and other issuance costs resulted in net proceeds of$24,l 19,010. The net proceeds were used
to purchase U.S. government securities, which were deposited in an irrevocable trust
administered by an escrow agent and provided full payment on the outstanding 2003 Series A
refunded bonds on July 15, 2013. The bonds were considered defeased and are not included
in the government-wide statement of net position.
The County's total debt service requirements over the next eleven years will decrease by
$4,483,238 as a result of the refunding, and the net economic gain (difference between the
present values on the old and new debt) after taking into account all allocable costs of
issuance of the bonds was $4,063,240.
2013 Series C Also, in fiscal year 2013, the County issued $18,470,000 in refunding bonds
as the 2013 Series C general obligation bond issue. The refunding bonds have a true interest
cost of 1.827% and were issued to advance refund the $19,760,000 of callable bonds
outstanding of the 2004 Series A general obligation bond issue.
The bonds refunded bore interest at rates ranging from 4.000% to 5.000%. The par amount of
$18,470,000 plus a premium of $2,863,307, minus $100,798 in underwriting fees, insurance
and other issuance costs resulted in net proceeds of$21,232,509. The net proceeds were used
to purchase U.S. government securities, which were deposited in an irrevocable trust
administered by an escrow agent and will provide full payment on the outstanding 2004
Series A refunded bonds on July 15, 2014. The bonds were considered defeased and are not
included in the government-wide statement of net position.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The County's total debt service requirements over the next twelve years will decrease by
$3,321,784 as a result of the refunding, and the net present value savings was $2,998,797.
As of June 30, 2013, bonds and loans outstanding considered defeased amounted to
$43,310,000.
Bond Premiums
At June 30, 2013, total unamortized bond premiums were $20,942,617, which are being
amortized over the remaining life of the respective bond issues.
Bonds Authorized and Unissued
The County Council has authorized the issuance of $296.1 million in general obligation bonds
to finance specified capital improvement projects. At June 30, 2013, $151.1 million was not
yet issued.
Subsequent Events On July 24, 2013, the County Council authorized the issuance of
$1,169,000 in general obligation bonds for the County to finance specified capital
improvement projects. On September 19, 2013 these bonds were issued for Improvement
District No. 19. 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.
General Obligation Bond Anticipation Notes
The following is a summary of general obligation bond anticipation note transactions for the
County for the fiscal year ended June 30, 2013:
Authorized
Issue
Amount
Balance
July 1 2012 Issues Retirements
Balance
June 30 2013
2012 Series B R-4 $ 10,000,000 $ 10,000,000 $ $ 10,000,000 $
2012 Series B R-5 15,000,000 15,000,000 15,000,000
2012 Series B R-6 8 000 000 8 000 000 8 000 000
$33 000 000 $33 000 000 $ $33 000 000 $
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 eight projects
approved for funding with these loans.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The schedule below shows the County's SRF transactions for the fiscal year ended June 30,
2013:
Loans
Authorized
Approved
Amount
Loan Balance
Julx 1 2012 Additions
-
Retirements
I Forgiveness
Loan Balance
June 30, 2013
Due Within
One Year
HiloWWTP $12,724,311 $ 805,882 $ ($ 805,882) $ $
WaiakeaMill 1,300,000 162,007 (80,004) 82,003 82,003
Waiakea
Houselots 459,321 29,209 (29,209)
Waiakea
Houselots II 5,024,266 2,158,941 (2,158,941)
AinakoA&B 2,239,174 337,417 (337,417)
Kalanianaole 1,499,944 340,851 (340,851)
Kalanianaole RH 1,615,980 1,119,567 (1,119,567)
Alii Drive A&B 3,210,243 418,345 (418,345)
Alii Drive C&D 3,780,000 793,877 (793,877)
Alii Drive E&F 2,112,654 563,171 (563,171)
WaiahaBay 3,697,893 819,045 (819,045)
Kealakehe 1,300,071 161,712 (79,858) 81,854 81,854
Holualoa Bay 3,080,000 888,566 (888,566)
PaukaaCCS 2,143,448 898,384 (898,384)
Cesspool
Conversion 8,363,773 6,390,266 (426,092) 5,964,174 428,156
Pahoehoe 2,817,760 1,484,497 (1,484,497)
HonokaaLCC 4,811,709 2,776,904 670,009 (203,385) 3,243,528 86,151
Queen
Liliuokalani 10,186,277 8,901,985 (712,603) 8,189,382 238,239
Kalanianaole 8 621409 4 321 342 (I 000 000) 3 321 342 78 614
$78 988 233 $29 050 626 $4991 351 ($13 159 694) $20 882 283 $ 995 017
The loans bear interest at 0.50% to 2.50%, exclusive of a 0.25% to 1.0% loan fee, and require
payments through fiscal year 2032.
Debt service to maturity for disbursements to date on these projects are as follows:
Governmental Activities
Fiscal year ending June 30: Principal Interest
2014 $ 995,017 $ 113,581
2015 1,244,959 146,819
2016 1,251,145 137,516
2017 1,257,495 128,034
2018 1,263,750 118,631
2019 -2023 6,414,280 449,860
2024-2028 5,888,281 209,172
2029-2032 2,567,356 37,831
Total $20.882.283 $1.341.444
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COUNTY OF HA WAI!
Notes to the Basic Financial Statements
June 30, 2013
Other General Long-Term Obligations
The following is a summary of other general long-term obligations transactions for the fiscal
year ended June 30, 2013:
Balance
July 1, 2012 Additions* Payments
Balance
June 30, 2013
Due Within
One Year
Governmental activities:
Compensated absences $32,580,579 $10,062,763 ($10,478,232) $32,165,110 $7,540,581
Claims andjudgments
(see Note 12) 10,447,107 4,450,044 (2,492,689) 12,404,462 2,608,535
Capital leases
(see Note 8) 3,803,618 1,306,791 (1,477,989) 3,632,420 1,335,930
Landfill costs payable
(see Note 9) 21,424,000 888,949 (327,949) 21,985,000 193,821
Other post employment
benefit obligation
(see Note 13) 22,340,332 29,712,000 (13,891,830) 38,160,502
Total $90,595,636 $46 420,547 ($28,668,682) $108,347,494 $11,678,867
* Net of new claims liability and existing claims resolved at less than previous estimate.
Historically, the County's general fund has been used to liquidate the majority of other long-
term liabilities, including the other post employment benefit obligation and the compensated
absences since most employees are paid by the general fund.
Fund Balances -Debt Service Funds
The fund balance in the debt service funds at June 30, 2013 includes $16,732,747, which is
reserved for principal payments on general obligation bonds and $2,393,875, which is
reserved for the payment of interest on the bonds.
Enterprise Fund Notes, Bond and Loan Payable
On February 12, 2013, the County issued general obligation bonds on behalf ofKulaimano
Elderly Housing Project (Project) to pay off its two notes payable to the U.S. Department of
Agriculture, Farmers Home Administration with principal and interest balances aggregating
$835,108. The Project is responsible for the debt service payment related to their portion of
the bonds, which is also secured with the County's general obligation pledge. Because the
Project is responsible for only a portion of the total bonds issued, it was decided that the
Project would continue to make bond payments equivalent to its previous monthly installment
payments of$7,826 on the old notes at 5.547% interest. Under this payment schedule, the
Project will make contributions through 2025 of the bonds 2032 maturity date.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The following is a summary of the Project's bond payable transactions for the fiscal year
ended June 30, 2013:
Balance at July 1, 2012 $851,306
Deductions (20,182)
Balance converted to
bond payable 831,124
Add interest payable
to bond 3 984
Balance at June 30, 2013 835,108
Less current portion (24,071)
Note payable, net of
current portion $ 811.037
The following is a summary of the annual maturities for the enterprise fund bond payable:
Business-type Activities
Fiscal year ending June 30: Principal Interest
2014 $ 24,071 $ 45,095
2015 50,187 42,317
2016 53,043 39,381
2017 56,061 36,278
2018 59,251 32,999
2019 -2023 350,832 108,885
2024-2026 241,663 13,475
Total $835.108 $318.430
On October 29, 2012, the County assumed the loan of its lessee Ouli Ekahi Partnership with
the Hawaii Housing Finance and Development Corporation in the amount of$478,430. The
loan is non-interest bearing and matures on February 27, 2041. In exchange, the County
assumed ownership of the Ouli Ekahi project which consists of a 33 single family affordable
rental housing project.
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COUNTY OF HA WAii
Notes to the Basic Financial Statements
June 30, 2013
The following is a summary of enterprise fund loan payable transactions for the fiscal year
ended June 30, 2013:
Loan assumption $478,430
Deductions (16,905)
Balance at June 30, 2013 461,525
Less current portion (16,500)
Loan payable, net of
current portion $ 445.025
The following is a summary of the annual maturities for the enterprise fund loan payable:
Business-type Activities
Fiscal year ending June 30: Principal
2014 $ 16,500
2015 16,500
2016 16,500
2017 16,500
2018 16,500
2019 -2023 82,500
2024-2028 82,500
2029-2033 82,500
2034-2038 82,500
2039-2041 49,025
Total $461.525
Special Assessment Bonds
The County has issued general obligation bonds on behalf oflmprovement District No. 18 for
water improvements (see Note 4). These bonds were then refunded by a portion of the 2013
Series A Bonds that were issued. The Improvement District is responsible for the payment of
the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district's share of the refunded bonds matures
annually through 2027 and bear interest at the previous rates of 4.375% to 4.75%. Total
general obligation bonds payable included in the government-wide statement of net position
were $1,345,945 at June 30, 2013.
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.
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COUNTY OF HA WAil
Notes to the Basic Financial Statements
June 30, 2013
The following is a summary of bond transactions for Improvement District No. 18,
Coastview/Wonderview Water Improvements, for the fiscal year ended June 30, 2013:
Balance at July 1, 2012 $2,790,526
Deductions (l,444,581)
Balance at June 30, 2013 $1.345.945
The following is a summary of the annual maturities for the improvement district general
obligation bonds:
Fiscal year ending June 30: Principal Interest
2014 $ 64,014 $ 69,406
2015 66,993 58,118
2016 70, 111 54,929
2017 73,373 51,590
2018 76,788 48,096
2019 -2023 440,999 182,091
2024-2028 553,667 66,798
Total $1.345.945 $ 531.028
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments -Contractual commitments for capital projects, expenses, and
supplies at June 30, 2013, except in the enterprise funds, are reflected in the balance sheets as
a part of the respective fund balance categories and are as follows:
General fund $ 3,182,390
Capital projects fund 29,304,525
Nonmajor funds 9,520,305
$42.007.220
Contractual commitments for the enterprise funds were immaterial.
Intergovernmental revenues -The County has received federal and state grants for specific
purposes that are subject to review and audit by grantor agencies. Such audits could lead to
requests for reimbursement to the grantor agency for expenditures disallowed under terms of
the grants. In the opinion of management of the County, disallowed costs, if any, would not
be material.
Claims -Numerous claims and lawsuits have been filed against the County in the normal
course of its operations. A liability for probable losses is included on the government-wide
statement of net position (see Note 12). Although the outcome of the various claims and
lawsuits is not presently determinable, in the opinion of the County's Corporation Counsel,
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
the resolution of such matters will not have a material adverse affect on the financial
condition of the County.
ADA compliance-The County 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, filed on October 2,
1997, relating to curb cuts, the County, with the help of a consultant, surveyed 669
intersections, then ranked them in order of priority. A transition plan, along with a funding
commitment, was approved by the County Council. The total cost of all curb cuts was
estimated to be $6.2 million. The cost of the first phase of the plan was $3 million, to be used
in high priority areas such as government facilities, schools, and hospitals. The remaining
cost was intended to 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 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. In addition, the Department of Public Works
has developed and advertised Procedures for Requesting New Curb Ramps or Modifications
to Existing Curb Ramps ("Curb Ramp Request") within the County Streets, and the Curb
Ramp Request is available on the Department of Public Works web page. On September 20,
2012, the close-out order of the consent decree was filed, thus dismissing the curb ramp case
with prejudice, and a copy of"County of Hawaii's Accessibility Design Guidelines and
General Policies and Procedures, Curb Ramps within Public Rights-of-Way" (June 2012) was
attached as an exhibit to that order.
The second stipulated agreement, filed on June 4, 1998, relates to the Department of Parks
and Recreation (Parks). The agreement required Parks 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. 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 was 12 years from the date the County Council accepted the self-evaluation.
The initial (1997-2000) estimated cost of the facilities repairs was $15.1 million, which
would have been spent over the 12-year period. Funding allocated initially for facilities
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COUNTY OF HA WAil
Notes to the Basic Financial Statements
June 30, 2013
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, Parks has requested
$2 to $3 million a year for the different park facilities' ADA projects. 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 worked on a plan to implement the 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. The County had spent $42.0 million for the
construction and design fees to complete 50 park facilities (some having multiple ADA work
being completed). There are four park facilities where construction has progressed; 29 park
facilities that must be completed; and Parks estimated costs for completion is $15 .1 million as
of June 30, 2013. On March 23, 2012, the close-out of the consent decree was filed, whereby
the Court and parties established a reasonable four year timeline to complete the remaining
ADA work by December 31, 2016. In addition, the County's ADA coordinator (Equal
Opportunity Officer) has access to an identifiable account of at least $50,000 to handle
requests for reasonable accommodations for County departments; and the procedures for
these requests have been finalized and are available on the Human Resources Department's
Equal Opportunity and the ADA web page.
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, aviation liability for helicopter operations, liability coverage on transit buses and
privately owned police vehicles, and property damage coverage on County Police fleet
vehicles. The County maintains Fire and property coverage on several County Housing
projects (Kulaimano, Ouli Ekahi, and four model homes at Kamakoa Nui). 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. The liability for claims and judgments is reported on the government-wide statement
of net position and the majority will be liquidated from the County's general fund.
Liabilities are reported when it is probable that a loss has occurred and the amount of that loss
can be reasonably estimated. These losses include an estimate of claims that have been
incurred but not reported (IBNR). Claim liabilities, including IBNR, are based on the
estimated ultimate cost of settling the claims, and include incremental costs for the hiring of
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COUNTY OF HA WAii
Notes to the Basic Financial Statements
June 30, 2013
special counsel and expert witnesses. Claims liabilities are estimated by a case-by-case
review of all claims and the application of historical experience to outstanding claims.
Estimates of IBNR are based on historical experience. The liability for claims and judgments
is reported on the government-wide statement of net position. At June 30, 2013, the amount
of this liability was $12,404,462. This is the County's best estimate based on available
information. Changes in the reported liability since July 1, 2011 are given below.
General
Liability
Workers'
Compensation
Total
Liability
-
Balance at July 1, 2011 $ 1,668,899 $ 9,228,238 $ 10,897,137
Incurred claims (including IBNR)* 598,474 2,551,526 3,150,000
Claim payments (l,302,957) (2,297,073) (3,600,030)
Balance at June 30, 2012 $ 964,416 $ 9,482,691 $ 10,447,107
Incurred claims (including IBNR)* 1,625,532 2,824,512 4,450,044
Claim payments (176,129) (2,316,560) (2.492,689)
Balance at June 30, 2013 $ 2.413.819 $ 9.990.643 $ 12.404.462
*Net of new claims liability and existing claims resolved at less than previous estimate.
13. EMPLOYEE BENEFIT PLANS
Pension Plan
Plan description All eligible employees of the County are required by Chapter 88 of the
Hawai'i Revised Statutes (HRS) to become members of the Employees' Retirement System
of the State of Hawai'i (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.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
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 ofretirement. 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:
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%.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
Noncontributory Plan General employees in the noncontributory plan are fully vested
upon receiving 10 years of credited service. The County is required to make all
contributions for these members. Employees may retire with full benefits at age 62 and
10 years of credited service or age 55 and 30 years of credited service or age 55 and 20
years of credited service with reduced benefits. The benefit multiplier used to calculate
retirement benefits is 1.25%.
The ERS funding policy provides for periodic employer contributions at actuarially
determined rates, expressed as a percentage of annual covered payroll, such that the employer
contributions, along with employee contributions and an actuarially determined rate of
investment return, are adequate to accumulate sufficient assets to pay benefits when due. The
funding method used to calculate the total employer contribution required is the entry age
normal actuarial cost method. Effective July 1, 2005, employer contribution rates are a fixed
percentage of compensation, including the normal cost plus amounts required to pay for the
unfunded actuarial accrued liability. Employers contributed 22.00% for police officers and
fire fighters, and 15.50% 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, 2013, 2012,
and 2011 were $23,559,710, $21,832,179, and $21,435,798, respectively, which equal the
required contributions for each year. Measurement of assets and actuarial valuations are
made for the ERS as a whole and are not separately computed for individual participating
employers such as the County.
The ERS issues a CAFR that includes financial statements and required supplementary
information, which may be obtained by writing to the Employees' Retirement System of the
State ofHawai'i, 201 Merchant Street, Suite 1400, Honolulu, Hawai'i 96813.
Post-Retirement Benefits
In addition to providing pension benefits, the County is required by state statute (HRS
Chapter 87A) to contribute to the Hawai'i Employer-Union Health Benefits Trust Fund (the
EUTF). The EUTF is an agent, multiple-employer defined benefit plan providing certain
healthcare and life insurance benefits to all qualified retirees, active employees, their
dependents and their beneficiaries. 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. The
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
current (pay-as-you-go) premium costs are paid by the respective funds but the net other
postemployment benefit obligation is paid by the General Fund.
For employees hired after June 30, 1996, and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
years of service, the County pays 50% of the retired employees' monthly Medicare or non-
Medicare premium. For employees hired after June 30, 1996, and who retire with at least 15
years but fewer than 25 years of service, the County pays 75% of the retired employees'
monthly Medicare or non-Medicare premium. For those retiring with over 25 years of
service, the County pays the entire healthcare premium.
For employees hired after June 30, 2001, and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least 10 years but fewer than 15
years of service, the County pays 50% of the retired employees' monthly Medicare or non-
Medicare premium based on the self-plan. For employees hired after June 30, 2001, and who
retire with at least 15 years but fewer than 25 years of service, the County pays 75% of the
retired employees' monthly Medicare or non-Medicare premium; for those retiring with over
25 years of service, the County pays the entire healthcare premium.
For active employees, the employee's contributions are based upon negotiated collective
bargaining agreements. Employer contributions for employees not covered by collective
bargaining agreements and for retirees are prescribed by the HRS.
The County's annual other postemployment benefit (OPEB) cost is calculated based on the
annual required contribution (ARC) of the employer, which is an amount actuarially
determined in accordance with the parameters of Governmental Accounting Standards Board
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment
Benefits Other than Pensions (GASB Statement No. 45). GASB Statement No. 45 addresses
the failure of previous financial reporting practices to measure and recognize the cost of
OPEB during the periods when employees render the services or to provide relevant
information about OPEB obligations and the extent to which progress is being made in
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 21. 7% of annual covered payroll.
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COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
The following section shows the County's Annual OPEB cost for the year ended June 30,
2013, the amount actually contributed to the plan, and changes in the net OPEB liability:
Annual required contribution $29,494,000
Interest on net OPEB obligation 1,564,000
Adjustment to annual required contribution (1,346,000)
Annual OPEB Cost 29,712,000
Contributions made 13,891,830
Increase in net OPEB liability 15,820,170
Net OPEB liability-beginning of year 22,340,332
Net OPEB liability-end of year $38,160,502
The above net OPEB liability at the end of the year is included in the Statement of Net
Position in the noncurrent other liability amount of $38,160,502.
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the
net OPEB (asset) liability for the year ended June 30, 2013 and the preceding two years were
as follows:
Fiscal Year
Ended
Percentage of Annual
OPEB Cost
Contributed Annual OPEB Cost
NetOPEB
Obligation/
{Asset2
June 30, 2011 $34,913,000 89.1% ($120,768)
June 30, 2012 $36,191,000 37.9% $22,340,332
June 30, 2013 $29,712,000 46.8% $38,160,502
The schedule of funding progress based on the actuarial valuation date of July 1, 2011, is as
follows:
Actuarial accrued liability $394,633,000
Actuarial value of plan assets 61,907,000
Unfunded actuarial accrued liability (UAAL) $332, 726,000
Funded ratio 16%
Covered payroll (active plan members) $130, 170,000
UAAL as a percentage of covered payroll 256%
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.
-86 -
COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information that shows whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits.
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, 2011 actuarial valuation, the entry age normal cost actuarial cost method was
used. The actuarial assumptions included a 7 .0% discount rate, which is based on the
County's anticipated funding level, and an annual healthcare cost trend rate of 8.0% initially,
reduced by decrements to an ultimate rate of 5.0% after nine years. The assumptions also
include a 3.5% increase in payroll and a 3.0% inflation rate. The UAAL is being amortized
as a level percentage of projected payroll on an open basis. The remaining amortization
period at July 1, 2011 for the UAAL balance varies depending on the date each portion was
established but is set to not exceed 30 years.
The EUTF issues a publicly available financial report that includes financial statements and
required supplementary information, which is available on-line at their web-site
www.eutf.hawaii.gov or by contacting them at P.O. Box 2121, Honolulu, HI 96805-2121.
Deferred Compensation Plan
County employees are permitted to participate in a deferred compensation plan of the State of
Hawai'i, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits
eligible employees to defer a portion of their salary until future years by contributing to a
fund managed by a plan administrator. The deferred compensation amounts are not available
to employees until termination, retirement, death, or unforeseeable emergency.
All plan assets are held in a trust fund to protect them from claims of general creditors and
from diversion to any uses other than paying benefits to participants and beneficiaries. The
County has no responsibility for loss due to the investment or failure of investment of funds
and assets in the plans, but does have the duty of due care that would be required of an
ordinary prudent investor. Therefore, the deferred compensation plan assets are not reported
in the accompanying basic financial statements.
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COUNTY OF HAWAII
Notes to the Basic Financial Statements
June 30, 2013
14. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30, 2013, cash, time certificates of deposit and money market funds of$32,004,491,
with bank balances of $32,438,987 were held by the County on behalf of the Department.
These balances were fully insured or collateralized with securities held by the County's agent
in the County's name.
The deposits and investments include cash received by the Department that is restricted as to
use and is recorded as a restricted asset. Such funds amounted to $2,574,396 at June 30,
2013. At June 30, 2013, the Department had no investments.
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.
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, 2013 were as follows:
Utility plant in service $442,248,055
Less: accumulated depreciation Cl 87,096,040)
255,152,015
Land and rights 4,528,502
Construction work in progress 11.708,146
Net capital assets $271.388.663
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COUNTY OF HA WAii
Notes to the Basic Financial Statements
June 30, 2013
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 $40,768,718 at
June 30, 2013.
General obligation bonds payable issued on behalf of the Department and other long-term
debt at June 30, 2013 are comprised of the following:
Public improvement bonds:
2004 Series D at 4.5%, due through 2039 $ 232,191
2006 Series A at 4.0% to 5.0%, due through 2026 19,825,000
2008 Series A at 4.125%, due through 2043 140,217
2010 Series A at 3.33% to 6.1 %, due through 2030 8,831,250
2010 Series Bat 3.33% to 6.1 %, due through 2030 6,168,750
Total public improvement bonds 35,197,408
Public improvement refunding bonds:
2004 Series at 2.0% to 5.25%, due through 2015 95,836
2007 Series at 4.0% to 5.0%, due through 2021 4,886,590
Total public improvement refunding bonds 4,982,426
Revolving fund loans:
State revolving fund loans, interest up to 1.37%,
due through 2030 12,911.310
Total long-term debt 53,091,144
Add: Unamortized premium 588,884
Total $53.680.028
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COUNTY OF HA WAH
Notes to the Basic Financial Statements
June 30, 2013
At June 30, 2013, future principal payments for long-term debt are scheduled as follows:
Fiscal year ending June 30:
2014 $ 2,556,000
2015 3,287,000
2016 3,348,000
2017 3,456,000
2018 3,576,000
2019 -2023 18,474,000
2024-2028 14,872,000
2029-2033 3,367,000
2034-2038 90,000
2039-2043 65 144
Total $53.091.144
Contributions in Aid of Construction
The Department recognized $15,226,253 of contributions in aid of construction for the fiscal
year ended June 30, 2013.
Commitments and Contingent Liabilities
Claims and judgments-The Department maintains property, auto liability, and general
liability insurance policies. The Department remains self-insured for workers' compensation
and other perils. The liability at June 30, 2013 for workers' compensation claims of
$229,000 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 $15,708,000 at
June 30, 2013.
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
benefits. The Department's annual required contribution for its postemployment benefit
obligation for the year ended June 30, 2013 was $1,834,000. The Department made
contributions of $1,834,000 during the year ended June 30, 2013 and recorded a
postemployment benefit asset of $3,000 at June 30, 2013.
-90 -
COUNTY OF HAWAII
Required Supplementary Information
June 30, 2013
Schedule of Funding Progress for the EUTF
(In thousands)
Actuarial
Valuation
Date
Actuarial
Value of
Assets
(a)
Actuarial
Accrued
Liability
(AAL)-
Entry Age
(b)
Unfunded
AAL
(UAAL)
(b-a)
Funded
Ratio
(alb)
Covered
Payroll
(c)
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
July 1, 2007 $275,828 $275,828 $127,420 216.5%
July 1, 2009 $28,814 $439,225 $410,411 6.6% $133,555 307.3%
July 1, 2011 $61,907 $394,633 $332,726 15.7% $130,170 255.6%
-91 -
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-92-
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
HIGHWAY FUND -Used to account for the costs of maintaining the County's highways and streets.
Financing is provided primarily by fuel, motor vehicle weight and public utility franchise taxes.
SEWER FUND -Used to account for costs of operating the County's various sewer systems. Financing is
provided by charges to users for sewer services.
SOLID WASTE FUND-Used to accumulate moneys for the operation, maintenance, and administration of
the County's solid waste management, collection and disposal systems. Financing is provided by tipping
fees at the landfills and by disposal permit fees.
CEMETERY FUND -Used to accumulate moneys to guarantee the future maintenance of County cemetery
sites. Financing is provided from the sale of burial lots in County cemeteries.
PARKING METER FUND -Used to account for the costs of maintaining County on-street and off-street
parking areas. Financing is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND -Used to accumulate moneys for the towing, removal, disposal and
recycling of abandoned or discarded automobiles and automobile parts. Financing is provided by annual
fees collected with motor vehicle registrations.
BIKEWAY FUND -Used to accumulate moneys for the construction ofbikeways 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 RELOCATION AND COMMUNITY BENEFITS 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 and to benefit the lower Puna
area.
BEAUTIFICATION FUND -Used to accumulate moneys for the beautification of highways and disposal
of abandoned vehicles within the County. Financing is provided by assessments on vehicle registrations.
HAWAII COUNTY HOUSING AGENCY-Used to account for Federal and County moneys used to provide
public housing assistance within the County.
PARK DEDICATION FUND -Used to account for moneys deposited with the County by subdividers to
provide land for parks and playgrounds in subdivisions.
DEBT SERVICE FUND
INTEREST FUND-Used to accumulate moneys for payment of interest on general obligation bonds.
Moneys required to service interest maturities are transferred annually from the General Fund.
BOND REDEMPTION FUND -Used to accumulate moneys for the payment of general obligation bonds.
Moneys required to retire the bonds are transferred from the General Fund one year in advance of maturity.
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COUNTY OF HA WAii
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2013
Special Revenue Funds
Highway
Fund
Sewer
Fund
Solid
Waste
Fund
Cemetery
Fund
Parking
Meter
Fund
Assets
Cash and cash equivalents $ 14,771,554 $ 3,961,888 $ 8,228,955 $ 97,909 $ 203,787
Investments
Imprest fund 400 250
Receivables:
Due from other governments 119,153 1,457,205
Due from other governmental funds 44,762 10,764 131,299
Due from other nongovernmental funds 1,350
Trade, net of allowance for doubtful accounts 1,351,064 1,423,058
Other 235,626
163,915 1,363,178 3,247,188
Total assets $ 14,935,469 $ 5,325,466 $ 11,476,393 $ 97,909 $ 203,787
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 1,296,911 $ 247,592 $ 1,219,441 $ $
Accrued payroll 415,794 148,796 294,618
Due to other governmental funds 301,084 4,984 23,485
Deferred revenue 1,351,064 1,435,056
Other 1,903 51,812 3,279
Total liabilities 2,015,692 1,804,248 2,975,879
Fund balances:
Restricted for:
Debt service
Highways, streets and abandoned vehicles 12,919,777
Rental assistance and subsidy
Committed to:
Sanitation 3,521,218 8,500,514
Highways, streets and abandoned vehicles 203,787
Rental assistance and subsidy
Cemetery 97,909
Golf course
Lower Puna area
Parks and recreational projects
Total fund balances 12,919,777 3,521,218 8,500,514 97,909 203,787
Total liabilities and fund balances $ 14,935,469 $ 5,325,466 $ 11,476,393 $ 97,909 $ 203,787
-94 -
Special Revenue Funds
Vehicle
Disposal
Fund
Bikeway
Fund
Workforce
Investment
Act Fund
Golf
Course
Fund
Geothermal Reloc.
&Community
Benefits Fund
Beauti-
fication
Fund
Hawaii County
Housing
Agency
Park
Dedication
Fund
$2,525,642 $ 704,983 $ $ 339,336 $ 3,955,138 $ 1,241,372 $ 1,741,439 $ 16,376
3,400,000 68,433
2,000 200
139,013
1,887 52,577
38,993 3,094 221,533 98,197
1,887 178,006 3,094 221,533 150,774
$2,527,529 $ 704,983 $ 178,006 $ 344,430 $ 4,176,671 $ 1,241,372 $ 5,292,413 $ 84,809
$ 25,876 $ 13,903 $ $ 1,971 $ $ 13,788 $ 104,564 $
8,663 35,785 112,232
178,006 2,492
93,174
96,209
34,539 13,903 178,006 40,248 13,788 406,179
691,080 1,227,584
2,848,612
2,492,990
2,037,622
304,182
4,176,671
84,809
2,492,990 691,080 304,182 4,176,671 1,227,584 4,886,234 84,809
$2,527,529 $ 704,983 $ 178,006 $ 344,430 $ 4,176,671 $ 1,241,372 $ 5,292,413 $ 84,809
(Continued)
95 --
COUNTY OF HAW All
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2013
(Concluded)
Debt Service Fund
Interest
Fund
Bond
Redemption
Fund
Total
Nonmajor
Governmental
Funds
Assets
Cash and cash equivalents $ 158,894 $ $ 37,947,273
Investments 2,306,911 16,952,747 22,728,091
Imprest fund 2,850
Receivables:
Due from other governments 1,715,371
Due from other governmental funds 241,289
Due from other nongovernmental funds 1,350
Trade, net of allowance for doubtful accounts 2,774,122
Other 597,443
5,329,575
Total assets $ 2,465,805 $ 16,952,747 $ 66,007,789
Liabilities and Fund Balances
Liabilities:
Accounts payable $ $ $ 2,924,046
Accrued payroll 1,015,888
Due to other governmental funds 510,051
Deferred revenue 2,879,294
Other 71,930 220,000 445,133
Total liabilities 71,930 220,000 7,774,412
Fund balances:
Restricted for:
Debt service 2,393,875 16,732,747 19,126,622
Highways, streets and abandoned vehicles 14,838,441
Rental assistance and subsidy 2,848,612
Committed to:
Sanitation 12,021,732
Highways, streets and abandoned vehicles 2,696,777
Rental assistance and subsidy 2,037,622
Cemetery 97,909
Golf course 304,182
Lower Puna area 4,176,671
Parks and recreational projects 84,809
Total fund balances 2,393,875 16,732,747 58,233,377
Total liabilities and fund balances $ 2,465,805 $ 16,952,747 $ 66,007,789
See accompanying independent auditors' report.
-96 -
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-97 -
COUNTY OF HAW All
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
Special Revenue Funds
Highway
Fund
Sewer
Fund
Solid
Waste
Fund
Cemetery
Fund
Parking
Meter
Fund
Revenues
Fuel taxes $ 6,352,944 $ $ $ $
Public utility franchise taxes 11,087,369
Licenses and permits 7,247,674
Intergovernmental 574,037 1,067,520
Charges for services 6,904,712 6,520,495 16,991
Investment earnings (loss)
Other 393,843 39,189 24,788 6,250
Total revenues 25,655,867 6,943,901 7,612,803 6,250 16,991
Expenditures
Current:
General Government
Public safety 5,922,594
Highways and streets 15,042,939
Health, education and welfare
Culture and recreation
Sanitation 6,501,040 21,202,184
Pension and retirement contributions 1,713,563 604,971 1,132,511
Employees' health insurance 946,581 255,873 614,350
Other 407,397 132,802 276,216
Debt service:
Principal 1,055,883
Interest 51,558
Total expenditures 24,033,074 7,494,686 24,332,702
Excess (deficiency) of revenues
over (under) expenditures 1,622,793 (550,785) (16,719,899) 6,250 16,991
Other Financing Sources (Uses)
Premium on bonds
Refunding bonds
Refunding bonds issuance costs
Retirement of refunded debt
Transfers in 15,736,944
Transfers out (3,460,483)
Total other financing sources (uses) (3,460,483) 15,736,944
Net change in fund balances (1,837,690) (550,785) (982,955) 6,250 16,991
Fund balances at beginning of year 14,757,467 4,072,003 9,483,469 91,659 186,796
Fund balances at end of year $ 12,919,777 $ 3,521,218 $ 8,500,514 $ 97,909 $203,787
-98 -
Special Revenue Funds
Vehicle
Disposal
Fund
Bikeway
Fund
Workforce
Investment
Act Fund
Golf
Course
Fund
Geothermal Reloc
&Community
Benefits Fund
. Beauti-
ti cation
Fund
Hawaii County
Housing
Agency
Park
Dedication
Fund
-
$ $ $ $ $ $ $ $
2,091,972 84,280 174,331
1,611,249 14,638,166
831,038
4,329 (1,976)
40 761,524 124,123
2,091,972 84,280 1,611,249 831,078 761,524 174,331 14,766,618 (1,976)
24,890
36,403 87,749
1,611,249 15,293,647
798,251 8,246 56,300
2,098,169
21,104 139,591 467,730
15,199 79,418 190,443
3,072
8,390
1,501
2,134,472 36,403 1,611,249 1,020,332 33,136 144,049 15,961,711
{42,500) 47,877 (189,254) 728,388 30,282 {1,195,093) {1,976)
299,000 838,384
299,000 838,384
(42,500) 47,877 109,746 728,388 30,282 (356,709) (1,976)
2,535,490 643,203 194,436 3,448,283 1,197,302 5,242,943 86,785
$ 2,492,990 $ 691,080 $ $ 304,182 $ 4,176,671 $ 1,227,584 $ 4,886,234 $ 84,809
(Continued)
99 -
COUNTY OF HAW All
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2013
(Concluded)
Debt Service Fund
Interest
Fund
-
Bond
Redemption
Fund
Total
Nonmajor
Governmental
Funds
Revenues
Fuel taxes $ $ $ 6,352,944
Public utility franchise taxes 11,087,369
Licenses and permits 9,598,257
Intergovernmental 442,719 18,333,691
Charges for services 14,273,236
Investment earnings (loss) 2,353
Other 1,349,757
Total revenues 442,719 60,997,607
Expenditures
Current:
General Government 24,890
Public safety 5,922,594
Highways and streets
Health, education and welfare
Culture and recreation
Sanitation
Pension and retirement contributions
Employees' health insurance
Other
Debt service:
Principal
Interest
Total expenditures
Excess (deficiency) ofrevenues
over (under) expenditures
14,250,927
14,250,927
(13,808,208)
24,239,719
24,239,719
(24,239,719)
15,167,091
16,904,896
862,797
29,801,393
4,079,470
2,101,864
819,487
25,303,992
14,303,986
115,292,460
( 54,294,853)
Other Financing Sources (Uses)
Premium on bonds 1,650,192 1,650,192
Refunding bonds 8,029,843 8,029,843
Refunding bonds issuance costs (44,731) (44,731)
Retirement of refunded debt (9,635,304) (9,635,304)
Transfers in 14,063,323 16,958,317 47,895,968
Transfers out (3,460,483)
Total other financing sources (uses) 14,063,323 16,958,317 44,435,485
Net change in fund balances 255,115 (7 ,281,402) (9,859,368)
Fund balances at beginning of year 2,138,760 24,014,149 68,092,745
Fund balances at end of year $ 2,393,875 $ 16,732,747 $ 58,233,377
See accompanying independent auditors' report.
100 -
COUNTY OF HAW All
Highway Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
-
Revenues:
Taxes:
Fuel taxes $ 7,660,000 $ 7,660,000 $ 6,352,944 $ (1,307,056)
Public utility franchise taxes 10,560,000 10,560,000 11,087,369 527,369
Total taxes 18,220,000 18,220,000 17,440,313 (779,687)
157,674 7,247,674 Licenses and permits -motor vehicle weight taxes 7,090,000 7,090,000
Intergovernmental 528,564 578,564 619,884 41,320
Charges for services 500,000 500,000 301,371 (198,629)
Other 71,732 71,732 92,472 20,740
Total revenues 26,410,296 26,460,296 25,701,714 (758,582)
Expenditures:
Public safety -traffic engineering 6,624,102 6,659,102 6,24
Highways and streets 13,697,698 13,712,698 11,10
Highways and streets -mass transit 4,845,250 4,845,250 4,84
Pension and retirement contributions 2,016,000 2,016,000 1,71
Employees' health insurance 980,000 980,000 94
Other 1,000,000 1,000,000 (12
Total expenditures 29,163,050 29,213,050 24,72
Excess (deficiency) ofrevenues over (under)
expenditures (2,752,754) (2,752,754) 97
Other financing uses:
Transfers out -Capital Projects Fund (3,610,000) (3,610,000) (3,46
Deficiency of revenues under
expenditures and other uses (6,362,754) (6,362,754) (2,48
Fund balance at beginning of year 14,757,467 14,757,467 14,75
Fund balance at end of year $ 8,394,713 $ 8,394,713 $ 12,27
See accompanying independent auditors' report.
0,096 419,006
1,066 2,611,632
5,250
2,503 303,497
9,483 30,517
1,137) 1,121,137
7,261 4,485,789
4,453 3,727,207
0,483) 149,517
6,030) 3,876,724
7,467
1,437 $ 3,876,724
101 -
COUNTY OF HAW All
Sewer Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues:
Charges for services -sewer fees $ 6,966,219 $ 6,966,219 $ 6,904,712 $ (61,507)
Other 39,189 39,189
Total revenues 6,966,219 6,966,219 6,943,901 (22,318)
Expenditures:
Sanitation 7,107,239 7,107,239 6,618,533 488,706
Pension and retirement contributions 671,471 671,471 603,946 67,525
Employees' health insurance 340,610 340,610 256,735 83,875
Other 1,201,829 1,201,829 34,841 1,166,988
Total expenditures 9,321,149 9,321,149 7,514,055 1,807,094
Deficiency of revenues under expenditures (2,354,930) (2,354,930) (570,154) 1,784,776
Fund balance at beginning of year 4,072,003 4,072,003 4,072,003
Fund balance at end of year $ 1,717,073 $ 1,717,073 $ 3,501,849 $ 1,784,776
See accompanying independent auditors' report.
-102 -
COUNTY OF HA WAii
Solid Waste Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues:
Intergovernmental $ 1,049,200 $ 1,049,200 $ 1,014,219 $ (34,981)
Charges for services -tipping fees 6,392,400 6,392,400 6,520,495 128,095
Other 24,788 24,788
Total revenues 7,441,600 7,441,600 7,559,502 117,902
Expenditures:
Sanitation 23,130,400 23,092,402 21,797,773 1,294,629
Pension and retirement contributions 1,090,261 1,140,261 1,130,548 9,713
Employees' health insurance 625,000 625,000 614,768 10,232
Other 555,000 542,998 270,208 272,790
Total expenditures 25,400,661 25,400,661 23,813,297 1,587,364
Deficiency of revenues under expenditures (17,959,061) (17,959,061) (16,253, 795) 1,705,266
Other financing sources:
Transfers in -General Fund 15,736,944 15,736,944 15,736,944
Deficiency of revenues and other
sources under expenditures (2,222, 117) (2,222, 117) (516,851) 1,705,266
Fund balance at beginning of year 9,483,469 9,483,469 9,483,469
Fund balance at end of year $ 7,261,352 $ 7,261,352 $ 8,966,618 $ 1,705,266
See accompanying independent auditors' report
-103 -
COUNTY OF HA WAii
Cemetery Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
-
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -other -sale of cemetery plots $ 10,000 $ 10,000 $ 6,250 $ (3,750)
Expenditures -health, education and welfare 10,000 10,000 10,000
Excess of revenues over expenditures 6,250 6,250
Fund balance at beginning of year 91,659 91,659 91,659
Fund balance at end of year $ 91,659 $ 91,659 $ 97,909 $ 6,250
See accompanying independent auditors' report.
104 -
COUNTY OF HAW All
Parking Meter Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
-
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -Charges for services -highways and streets $ $ $ 16,991 $ 16,991
Excess of revenues over expenditures 16,991 16,991
Fund balance at beginning of year 186,796 186,796 186,796
Fund balance at end of year $ 186,796 $ 186,796 $ 203,787 $ 16,991
See accompanying independent auditors' report.
105 -
COUNTY OF HA WAii
Vehicle Disposal Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
-
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues:
Licenses and permits -vehicle disposal fee $ 2,030,364 $ 2,030,364 $ 2,091,972 $ 61,608
Expenditures:
Sanitation 2,551,567 2,548,567 1,034,301 1,514,266
Pension and retirement contributions 21,805 21,805 20,722 1,083
Employees' health insurance 12,000 15,000 14,954 46
Other 2,000 2,000 2,000
Total expenditures 2,587,372 2,587,372 1,069,977 1,517,395
Excess (deficiency) ofrevenues
over (under) expenditures (557,008) (557,008) 1,021,995 1,579,003
Fund balance at beginning of year 2,535,490 2,535,490 2,535,490
Fund balance at end of year $ 1,978,482 $ 1,978,482 $ 3,557,485 $ 1,579,003
See accompanying independent auditors' report.
106 -
COUNTY OF HA WAii
Bikeway Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
and Final
Budget
-
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -licenses and permits -bicycle tax $ 20,000 $ 84,280 $ 64,280
Expenditures -highways and streets 171,000 25,000 146,000
Excess (deficiency) ofrevenues over (under)
expenditures (151,000) 59,280 210,280
Fund balance at beginning of year 643,203 643,203
Fund balance at end of year $492,203 $702,483 $210,280
See accompanying independent auditors' report.
107 -
COUNTY OF HA WAii
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, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
-
Revenues -intergovernmental -federal grants $ $ 1,521,232 $ 1,521,232 $
Expenditures -health, education and welfare 1,521,232 1,521,232
Excess of revenues over expenditures
Fund balance at beginning of year
Fund balance at end of year $ $ $ $
See accompanying independent auditors' report.
108 -
COUNTY OF HAW All
Golf Course Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues:
Charges for services $ 840,672 $ 840,672 $ 831,038 $ (9,634)
Other 40 40
Total revenues 840,672 840,672 831,078 (9,594)
Expenditures:
Culture and recreation 865,653 865,653 789,497 76,156
Pension and retirement contributions 160,709 160,709 139,296 21,413
Employees' health insurance 99,709 99,709 79,517 20,192
Other 13,601 13,601 3,243 10,358
Total expenditures 1,139,672 1,139,672 1,011,553 128,119
Deficiency of revenues under expenditures (299,000) (299,000) (180,475) 118,525
Other financing sources:
Transfers in -General Fund 299,000 299,000 299,000
Excess of revenues and other sources
over expenditures 118,525 118,525
Fund balance at beginning of year 194,436 194,436 194,436
Fund balance at end of year $ 194,436 $ 194,436 $ 312,961 $ 118,525
See accompanying independent auditors' report.
-109 -
COUNTY OF HA WAii
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, 2013
Original
Budget
-
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -other -geothermal royalties $ 600,000 $ 600,000 $ 761,524 $ 161,524
Expenditures:
General government:
Legislative 24,890 24,890 24,890
Planning and zoning 351,230 1,051,230 1,051,230
Public safety -traffic 80,000 80,000 80,000
Highways and streets -mass transit 17,000 17,000 17,000
Culture and recreation -parks and recreation 126,880 126,880 13,773 113,107
Total expenditures 600,000 1,300,000 38,663 1,261,337
Excess (deficiency) ofrevenues
over (under) expenditures (700,000) 722,861 1,422,861
Fund balance at beginning of year 3,448,283 3,448,283 3,448,283
Fund balance at end of year $ 3,448,283 $ 2,748,283 $ 4,171,144 $ 1,422,861
See accompanying independent auditors' report.
110 -
COUNTY OF HAW All
Beautification Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
-
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -licenses and permits -highway
beautification $ 157,920 $ 157,920 $ 174,331 $ 16,411
Expenditures:
Highways and streets 96,620 168,620 129,909 38,711
Culture and recreation 61,300 86,300 63,587 22,713
Total expenditures 157,920 254,920 193,496 61,424
Deficiency of revenues under expenditures (97,000) (19,165) 77,835
Fund balance at beginning of year 1,197,302 1,197,302 1,197,302
Fund balance at end of year $ 1,197,302 $ 1,100,302 $ 1,178,137 $ 77,835
See accompanying independent auditors' report.
111 -
COUNTY OF HAW All
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, 2013
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues:
Intergovernmental -
Federal -HUD -Voucher program $ 15,659,252 $ 15,659,252 $ 14,613,640 $ (1,045,612)
Other 29,122 29,122 24,526 (4,596)
Investment earnings 6,000 6,000 4,329 (1,671)
Resale of property 124,027 124,027
Other 96 96
Total revenues 15,694,374 15,694,374 14,766,618 (927,756)
Expenditures:
Health, education and welfare 16,209,060 16,209,060 15,310,585 898,475
Pension and retirement contributions 530,834 530,834 469,133 61,701
Employees' health insurance 225,182 225,182 191,646 33,536
Total expenditures 16,965,076 16,965,076 15,971,364 993,712
Deficiency of revenues under expenditures (1,270,702) (1,270,702) (1,204,746) 65,956
Other financing sources:
Transfers in -General Fund 838,384 838,384 838,384
Deficiency of revenues and other
sources under expenditures (432,318) (432,318) (366,362) 65,956
Fund balance at beginning of year 5,242,943 5,242,943 5,242,943
Fund balance at end of year $ 4,810,625 $ 4,810,625 $ 4,876,581 $ 65,956
See accompanying independent auditors' report.
-112 -
COUNTY OF HA WAii
Park Dedication Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2013
Original
Budget
Final
Budget
-
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -investment earnings $ $ $ 18 $ 18
Excess of revenues over expenditures 18 18
Fund balance at beginning of year 86,785 86,785 86,785
Fund balance at end of year $ 86,785 $ 86,785 $ 86,803 $ 18
See accompanying independent auditors' report.
113 -
COUNTY OF HA WAii
Agency Funds
Combining Statement of Agency Funds Net Position
June 30, 2013
State
Weight
Tax
Fund
Improvement
District
No.18
Fund
Improvement
District
Revolving
Fund
Performance
and
Refundable
Deposits
Fund
Payroll
Clearance
Fund
Flexible
Spending
Account
Assets
Cash and cash equivalents $1,682,830 $ 183,262 $ 37,894 $ 229,483 $ 341,667 $ 381,933
Investments 189,525
Due from other agency funds
Other receivables 8,269 33,425
Total assets $1,682,830 $ 191,531 $ 227,419 $ 229,483 $ 375,092 $ 381,933
Liabilities
Due to other agency funds $ $ $ $ 1,670 $ 872 $
Accrued liabilities 1,682,830 10,687 374,220 381,933
Advances payable 11,911 227,813
Assets held for the benefit of
improvement districts 168,933 227,419
Total liabilities $1,682,830 $ 191,531 $ 227,419 $ 229,483 $ 375,092 $ 381,933
See accompanying independent auditors' report.
-114 -
Lapsed
Warrants
Fund
Non-Profit
License
Plates
Fund
Organ and
Tissue
Education
Fund
Business
Improvement
District
1 -Kailua Total
$ 234,640 $ 1,250 $ 954 $ 184 $ 3,094,097
189,525
2,542 2,542
10,065 20,741 72,500
$ 247,247 $ 1,250 $ 954 $ 20,925 $ 3,358,664 =====
$ $ $ $ $ 2,542
247,247 1,250 954 183 2,699,304
239,724
20,742 417,094
$ 247,247 $ 1,250 $ 954 $ 20,925 $ 3,358,664
-115 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
Balance
July 1,
2012 Additions Deductions
Balance
June 30,
2013
State Weight Tax Fund
Assets
Cash and cash equivalents $ 1,755,546 $ 23,412,342 $ 23,485,058 $ 1,682,830
Liabilities
Vouchers payable $ $ 23,475,406 $ 23,475,406 $
Accrued liabilities 1
Accrued liabilities -due to State of Hawaii 1,755,545 21,504,223 21,576,938 1,682,830
Total liabilities $ 1,755,546 $ 44,979,629 $ 45,052,345 $ 1,682,830
Improvement District No. 18 Fund
Assets
Cash and cash equivalents $ 17,532 $ 315,224 $ 149,494 $ 183,262
Investments 1,458,449 1,458,449
Other receivables 8,146 343,770 343,647 8,269
Total assets $ 1,484,127 $ 658,994 $ 1,951,590 $ 191,531
Liabilities
Vouchers Payable $ $ 1,392,773 $ 1,392,773 $
Accrued liabilities 10,907 296,251 296,471 10,687
Advances payable 14,183 11,911 14,183 11,911
Assets held for the benefit
of improvement districts 1,459,037 279,470 1,569,574 168,933
Total liabilities $ 1,484,127 $ 1,980,405 $ 3,273,001 $ 191,531
Improvement District Revolving Fund
Assets
Cash and cash equivalents $ 286,569 $ 57 $ 248,732 $ 37,894
Investments 189,525 189,525
Total assets $ 286,569 $ 189,582 $ 248,732 $ 227,419
Liabilities
Vouchers payable $ $ 53,684 $ 53,684 $
Assets held for the benefit
of improvement districts 286,569 157,466 216,616 227,419
Total liabilities $ 286,569 $ 211,150 $ 270,300 $ 227,419
-116 -
COUNTY OF HA WAii
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
Balance
July 1,
2012 Additions Deductions
Balance
June 30,
2013
-
Performance and Refundable
Deposits Fund
Assets
Cash and cash equivalents
Liabilities
Vouchers payable
Due to other agency funds
Advances payable
Total liabilities
Payroll Clearance Fund
Assets
Cash and cash equivalents
Due from other non-agency funds
Other receivables
Total assets
Liabilities
Vouchers payable
Due to other agency funds
Accrued liabilities
Total liabilities
Flexible Spending Account
Assets
Cash and cash equivalents
Liabilities
Accrued liabilities
$ 522,542 $ 326,855 $ 619,914 $ 229,483
$
1,920
520,622
$ 522,542
$
$
615,145
1,670
325,185
942,000
$ 323,344 $ 212,058,388
208,885,478
41,479
$ 323,344 $ 420,985,345
$
326
323,018
$ 104,907,344
872
382,454,965
$
$
615,145
1,920
617,994
1,235,059
$
1,670
227,813
$ 229,483
$ 212,040,065 $ 341,667
208,885,478
8,054 33,425 --------
$ 420,933,597 $ 375,092
$ 104,907,344 $
326 872
382,403,763 374,220
$ 323,344 $ 487,363,181 $ 487,311,433 $ 375,092
$ 365,481 $ 324,846 $ 308,394 $ 381,933
$ 365,481 $ 324,846 $ 308,394 $ 381,933
117 -
COUNTY OF HAWAII
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
Balance
July 1,
2012 Additions Deductions
Balance
June 30,
2013
Lapsed Warrants Fund
Assets
Cash and cash equivalents $ 221,496 $ 13,396 $ 252 $ 234,640
Due from other agency funds 2,246 2,542 2,246 2,542
Other receivables 11,150 10,065 11,150 10,065
Total assets $ 234,892 $ 26,003 $ 13,648 $ 247,247
Liabilities
Vouchers payable $ $ 252 $ 252 $
Accrued liabilities 234,892 27,175 14,820 247,247
Total liabilities $ 234,892 $ 27,427 $ 15,072 $ 247,247
Non-Profit License Plates Fund
Assets
Cash and cash equivalents $ 1,175 $ 4,750 $ 4,675 $ 1,250
Liabilities
Vouchers payable $ $ 4,650 $ 4,650 $
Accrued liabilities:
Due to non-profit agency 1,175 4,750 4,675 1,250
Total liabilities $ 1,175 $ 9,400 $ 9,325 $ 1,250
Organ and Tissue Education Fund
Assets
Cash and cash equivalents $ 923 $ 3,547 $ 3,516 $ 954
Liabilities
Vouchers payable $ $ 3,516 $ 3,516 $
Accrued liabilities -due to State of Hawaii 923 3,547 3,516 954
Total liabilities $ 923 $ 7,063 $ 7,032 $ 954
-118 -
COUNTY OF HAW All
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2013
Balance
July 1,
2012 Additions Deductions
Balance
June 30,
2013
Business Improvement District 1-Kailua
Assets
Cash and cash equivalents $ 2,183 $ 754,248 $ 756,247 $ 184
-
Other receivables -BID 1-Kailua Assessment 14,997 760,006 754,262 20,741
Other receivables 470 470
Total assets $ 17,180 $ 1,514,724 $ 1,510,979 $ 20,925 =====
Liabilities
Vouchers payable $ $ 755,241 $ 755,241 $
Accrued liabilities -due to KVBID 2,183 121 2,183 121
Accrued liabilities 62 62
Assets held for the benefit
of improvement districts 14,997 897,965 892,220 20,742
Total liabilities $ 17,180 $ 1,653,389 $ 1,649,644 $ 20,925
Total -All Agency Funds
Assets
Cash and cash equivalents $ 3,496,791 $ 237,213,653 $ 237,616,347 $ 3,094,097
Investments 1,458,449 189,525 1,458,449 189,525
Due from other agency funds 2,246 2,542 2,246 2,542
Due from other non-agency funds 208,885,478 208,885,478
Other receivables -BID 1-Kailua Assessment 14,997 760,006 754,262 20,741
Other receivables 19,296 395,784 363,321 51,759
Total assets $ 4,991,779 $ 447,446,988 $ 449,080,103 $ 3,358,664
Liabilities
Vouchers payable $ $ 131,208,011 $ 131,208,011 $
Due to other agency funds 2,246 2,542 2,246 2,542
Accrued liabilities 934,299 383,103,299 383,023,449 1,014,149
Accrued liabilities -due to non-profit agency 1,175 4,750 4,675 1,250
Accrued liabilities -due to State of Hawaii 1,756,468 21,507,770 21,580,454 1,683,784
Accrued liabilities -due to KVBID 2,183 121 2,183 121
Advances payable 534,805 337,096 632,177 239,724
Assets held for the benefit
of improvement districts 1,760,603 1,334,901 2,678,410 417,094
Total liabilities $ 4,991,779 $ 537,498,490 $ 539,131,605 $ 3,358,664
See accompanying independent auditors' report.
119 -
COUNTY OF HA WAii
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Position
June 30, 2013
Geothermal
Asset
Shippers'
Wharf
Trust
Total
Private
Purpose
Assets Fund Fund Trusts
Cash and cash equivalents $ 416,700 $ 1,324,554 $ 1,741,254
Investments 1,741,343 1,289,418 3,030,761
Other Receivable 463 463
Total assets $ 2,158,043 $ 2,614,435 $ 4,772,478
Net Position
Held in trust for other parties $ 2,158,043 $ 2,614,435 $ 4,772,478
Total net position $ 2,158,043 $ 2,614,435 $ 4,772,478
See accompanying independent auditors' report.
-120 -
COUNTY OF HAW All
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Position
For the Fiscal Year Ended June 30, 2013
Geothermal
Asset
Fund
-
Shippers'
Wharf
Trust
Fund
Total
Private
Purpose
Trusts
Additions
Contributions:
Puna Geothermal Venture $ 50,000 $ $ 50,000
Investment earnings:
Net increase (decrease) in fair value of
investments (50,748) 80,715 29,967
Dividends 55,825 55,825
Interest 459 1,641 2,100
Total additions (289) 138,181 137,892
Deductions
Grant payments 290,734 290,734
Total deductions 290,734 290,734
Change in net position (289) (152,553) (152,842)
Net position, beginning of year 2,158,332 2,766,988 4,925,320
Net position, end of year $ 2,158,043 $ 2,614,435 $ 4,772,478
See accompanying independent auditors' report.
121 -
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-122 -
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. 123
Revenue Capacity-These schedules contain information to help the reader assess the County's
most significant local revenue source, the property tax. 128
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. 134
Demographic and Economic Information -These schedules offer demographic and economic
indicators to help the reader understand the environment within which the County's financial
acitivities take place. 137
Operating Jriformation -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. 139
Table 1
COUNTY OF HA WAii
Net Position by Component
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Governmental activities
Net investment in capital assets $336,435, 768 $364,662,377 $386,861,296 $394,789,635 $419,174,559 $419,615,479 $469,235,881 $514,309,238 $594,384,524 $699,326,156
Restricted 37,333,730 41,950,262 44,737,588 54,857,023 66,977,935 63,408,379 43,958,660 51,840,697 48,360,223 64,437,707
Unrestricted (10,384,644) (11,741,743) 8,885,911 21,350,091 27,329,104 42,457,132 37,623,937 40 287,046 39,340,897 1,895,863
Total governmental activities net position $363,384,854 $394,870,896 $440,484,795 $470,996,749 $513,481,598 $525,480,990 $550,818,478 $606 436,981 $682,085,644 $765,659,726
Business-type activities
Net investment in capital assets $ 324,942 $ 325,800 $ 317,534 $ 310,409 $ 307,424 $ 305,127 $ 303,244 $ 308,966 $ 315,848 $ 315,255
Restricted 180,782 182,167 182,797 183,832 184,352 184,643 184,914 185,087 185,148
Unrestricted 873,704 850,962 813,431 636,756 608,195 609,798 497,466 449,581 455,918 1,045,190
Total business-type activities net position $ 1,379,428 $ 1,358,929 $ 1,313,762 $ 1,130,997 $ 1,099,971 $ 1,099,568 $ 985,624 $ 943,634 $ 956,914 $ 1,360,445
Primary government
Net investment in capital assets $336,760,710 $364,988,177 $387, 178,830 $395, 100,044 $419,481,983 $419,920,606 $469,539,125 $514,618,204 $594,700,372 $699,641,411
Restricted 37,514,512 42,132,429 44,920,385 55,040,855 67,162,287 63,593,022 44,143,574 52,025,784 48,545,371 64,437,707
Unrestricted (9,510,940) (10,890,781) 9,699,342 21,986,847 27,937,299 43,066,930 38,121,403 40,736,627 39,796,815 2,941,053
Total primary government net position $364, 764,282 $396,229,825 $441,798,557 $472,127,746 $514,581,569 $526,580,558 $551,804,102 $607,380,615 $683,042,558 $767,020,171
Unaudited -see accompanying independent auditors' report.
-N w
Table 2
COUNTY OF HA WAil
Changes in Net Position
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Program Revenues
Govenunental activities:
Charges for services:
General govenunent $ 1,947,554 $ 3,227,420 $ 4,032,542 $ 4,460,016 $ 6,017,819 $ 5,442,950 $ 4,315,849 $ 1,856,795 $ 2,306,855 $ 1,695,152
Public safety 5,061,174 6,262,259 6,975,962 5,798,126 5,843,733 4,846,834 4,449,519 4,447,120 5,136,278 5,117,102
Highways and streets 6,052,544 7,629,139 9,079,084 9,354,639 9,701,815 9,636,799 9,351,219 9,800,983 10,544,711 10,159,443
Health, education and welfare 884,075 1,272,091 980,147 799,075 754,758 532,832 713,774 424,107 454,913 570,312
Culture and recreation 1,588,945 1,521,127 1,439,784 1,634,008 1,595,409 1,557,597 1,609,041 1,626,178 1,601,195 1,794,553
Sanitation 13,653,722 15,465,478 16,469,745 18,486,502 18,643,952 16,415,985 14,934,570 15,889,364 14,831,846 15,593,933
Operating grants and contributions 33,327,191 36,370,993 38,252,889 38,068,138 46,117,399 42,273,795 49,571,173 50,820,951 45,767,655 44,410,353
Capital grants and contributions 9,668,981 26,221,627 14,801,828 7,805,986 9,327,408 15,728,186 13,532,669 38,810,806 86,754,033 107,584,670
Total governmental activites program revenues 72,184,186 97,970,134 92,031,981 86,406,490 98,002,293 96,434,978 98,477,814 123,676,304 167,397,486 186,925,518
Business-type activities:
Charges for services:
Health, education and welfare 303,047 314,971 338,141 345,802 365,655 371,511 337,982 372,599 393,464 432,057
Operating grants and contributions 143,769 135,829 141,019 134,211 125,795 135,674 136,802 133,215 131,227 123,800
Total business-type activities program revenues 446,816 450,800 479,160 480,013 491,450 507,185 474,784 505,814 524,691 555,857
Total primary grovemment program revenues $ 72,631,002 $ 98,420,934 $ 92,511,141 $ 86,886,503 $ 98,493,743 $ 96,942,163 $ 98,952,598 $ 124,182,118 $ 167,922,177 $ 187,481,375
Expenses
Govenunental activities:
General govenunent $ 40,085,357 $ 51,262,329 $ 38,264,132 $ 46,349,904 $ 68,794,961 $ 69,968,534 $ 65,552,278 $ 53,439,428 $ 56,115,599 $ 55,616,102
Public safety 90,434,696 94,422,057 106,067,466 118,010,316 137,500,608 144,755,837 148,115,428 154,008,027 152,288,979 151,975,049
Highways and streets 17,563,608 20,857,341 24,783,476 28,185,968 33,577,707 36,466,541 38,075,835 34,812,165 42,462,299 42,219,903
Health, education and welfare 23,041,963 21,503,635 20,181,685 23,203,874 14,986,972 33,783,223 30,528,977 30,336,420 28,127,691 28,001,020
Culture and recreation 15,979,854 16,124,457 19,464,962 26,948,501 20,450,172 32,633,418 14,739,755 22,167,818 23,412,948 22,121,336
Sanitation 20,084,654 26,669,660 27,265,515 42,682,281 41,254,728 40,191,704 27,527,841 35,604,394 35,049,546 38,505,086
Interest on long-term debt 9,553,966 8,718,758 10,168,710 10,303,332 13,117,325 13,914,969 14,120,398 15,176,682 14,519,382 13,885,003
Total govenunental activities expenses 216,744,098 239,558,237 246,195,946 295,684, 176 329,682,473 371,714,226 338,660,512 345,544,934 351,976,444 352,323,499
Business-type activities:
Health, education and welfare 466,143 484,879 547,201 698,329 556,304 525,449 590,131 550,801 517,052 496,017
Total business-type activities expenses 466,143 484,879 547,201 698,329 556,304 525,449 590,131 550,801 517,052 496,017
Total primary govenunent expenses $ 217,210,241 $ 240,043, 116 $ 246,743,147 $ 296,382,505 $ 330,238,777 $ 372,239,675 $ 339,250,643 $ 346,095,735 $ 352,493,496 $ 352,819,516
Net Expense
Govenunental activities $ (144,559,912) $ (141,588,103) $ (154,163,965) $ (209,277,686) $ (231,680,180) $ (275,279,248) $ (240,182,698) $ (221,868,630) $ (184,578,958) $ (165,397,981)
Business-type activities (19,327) (34,079) (68,041) (218,316) (64,854) (18,264) (115,347) (44,987) 7,639 59,840
Total primary govenunent net expense $ (144,579,239) $ (141,622,182) $ (154,232,006) $ (209,496,002) $ (231,745,034) $ (275,297,512) $ (240,298,045) $ (221,913,617) $ (184,571,319) $ (165,338,141)
Continued next page.
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General Revenues and Other Changes in Net Position
Governmental activities:
General revenues:
Property taxes $ 119,864,237 $ 129,775,410 $ 152,182,806 $ 183,611,050 $ 210,217,690 $ 229,262,980 $ 218,037,567 $ 225,055,099 $ 209,894,427
Table2
$ 200, 775, 779
Public service company taxes 5,332,478 6,351,273 6,811,483 7,396,084 8,381,367 10,228,607 9,647,055 9,296,852 9,896,715 10,766,021
Public utility franchise taxes 5,373,144 6,016,890 7,328,887 8,520,133 9,026,841 11,118,365 8,963,041 9,415,624 11,065,112 11,087,369
Fuel taxes 7,552,317 7,580,740 7,857,394 8,471,453 7,887,998 7,662,113 7,405,996 7,603,501 8,293,200 6,352,944
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 17,500,038 19,533,165 19,074,105 17,750,132
Investment earnings (loss) 1,729,531 2,957,188 4,976,178 9,727,911 11,454,850 8,369,221 2,187,266 609,617 230,804 (81,020)
Other 4,825,259 3,657,794 2,110,854 3,063,413 7,801,194 2,749,335 1,779,223 5,973,275 1,773,258 2,320,838
Total governmental activities 159,928,409 173,074, 145 199,777,864 239,789,640 274,165,029 287,278,640 265,520,186 277,487,133 260,227,621 248,972,063
Business-type activities:
General revenues:
Investment earnings 8,006 13,580 22,874 35,551 33,828 17,861 1,403 2,997 5,641 1,416
Other 342,275
Total business-type activities 8,006 13,580 22,874 35,551 33,828 17,861 1,403 2,997 5,641 343,691
Total primary government $ 159,936,415 $ 173,087,725 $ 199,800,738 $ 239,825,191 $ 274,198,857 $ 287,296,501 $ 265,521,589 $ 277,490, 130 $ 260,233,262 $ 249,315,754
Changes In Net Position
Govermnental activities $ 15,368,497 $ 31,486,042 $ 45,613,899 $ 30,511,954 $ 42,484,849 $ 11,999,392 $ 25,337,488 $ 55,618,503 $ 75,648,663 $ 83,574,082
Business-type activities (11,321) (20,499) (45,167) (182,765) (31,026) (403) (113,944) (41,990) 13,280 403,531
Total primary government changes in net position $ 15,357,176 $ 31,465,543 $ 45,568,732 $ 30,329,189 $ 42,453,823 $ 11,998,989 $ 25,223,544 $ 55,576,513 $ 75,661,943 $ 83,977,613
Unaudited -see accompanying independent auditors' report.
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U
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Table 3
COUNTY OF HAW All
Fund Balances, Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
General Fund:
Reserved $ 7,452,338 $ 8,313,800 $ 11,519,135 $ 15,659,683 $ 17,468,606 $ 14,974,272 $ 8,088,347 $ $ $
Unreserved 12,270,870 15,664,272 23,446,072 28,950,668 31,401,745 44,603,975 31,430,570
Nonspendable 2,835,361 3,304,551 3,492,464
Restricted 4,296,363 3,693,958 4,863,905
Committed 8,756,426 11,710,875 12,065,528
Assigned 17,960,596 21,840,843 24,832,390
Unassigned 10,809,404 8,176,727 8,694,320
Total general fund 19,723,208 23,978,072 34,965,207 44,610,351 48,870,351 59,578,247 39,518,917 44,658,150 48,726,954 53,948,607
All other Government Funds:
Reserved 66,991,733 66,720,836 103,359,563 122,060,550 141,972,067 177,995,184 106,555,618
Unreserved, reported in:
Special revenue fund 15,151,534 18,525,727 20,342,112 24,874,744 24,553,386 26,088,685 29,436,463
Capital projects fund 32,293,518 64,915,483 48,345,838 95,684,215 39,116,365 (20,101,369) (3,290,813)
Restricted 77,739,628 71,033,712 104,886,880
Committed 40,148,878 36,866,120 29,502,567
Unassigned (3,609,332) (10,258,317) 6,914,320
otal ofother governmental funds 114,436,785 150,162,046 172,047,513 242,619,509 205,641,818 183,982,500 132,701,268 114,279,174 97,641,515 141,303, 767
Total Fund Balances $134,159,993 $174,140,118 $207,012,720 $287,229,860 $254,512,169 $ 243,560,747 $ 172,220, 185 $158,937,324 $ 146,368,469 $ 195,252,374
naudited -see accompanying independent auditors' report.
OTE-GASB 54 was implemented in 2011. Except for the unassigned category, conversion of prior year data to new categories is not possible at this time.
-
Table 4
COUNTY OF HAWAII
Changes in Fund Balances, Governmental Funds
(Modified accrual basis of accounting)
Last Ten Fiscal Years
(Amounts in thousands)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Revenues:
Property tax $121,868 $131,087 $153,207 $181,446 $ 208,313 $ 225,858 $ 215,548 $ 216,511 $208,231 $201,201
Public service company tax 5,332 6,351 6,812 7,396 8,381 10,229 9,647 9,297 9,897 10,766
Fuel tax 7,552 7,581 7,857 8,471 7,888 7,662 7,406 7,603 8,293 6,353
Public utility franchise tax 5,373 6,017 7,329 8,520 9,027 11,118 8,963 9,416 ll,065 11,087
Licenses and pennits 11,840 14,442 16,544 16,269 15,918 14,972 14,725 15,097 15,790 15,991
Intergovernmental 58,559 73,372 69,637 63,599 72,601 70,869 77,614 93,748 100,867 79,912
Charges for services 14,467 18,149 19,852 21,685 22,154 21,404 18,909 16,416 16,885 17,055
Investment earnings (loss) 1,806 3,104 5,223 10,291 12,144 8,914 2,253 510 406 (618)
Settlement contributions 12,500
Other 4,718 4,450 4,380 5,073 7,151 5,690 3,241 7,874 4,201 4,399
Total Revenues 231,515 264,553 290,841 322,750 363,577 376,716 358,306 376,472 375,635 358,646
Expenditures:
Current:
General government 23,070 26,183 31,153 37,652 42,991 45,882 40,586 34,251 35,088 33,360
Public safety 69,117 76,404 83,591 93,241 103,617 107,540 108,798 104,917 104,523 106,885
Highways and streets 9,542 9,787 12,608 14,033 19,529 17,159 20,222 17,114 17,338 17,923
Sanitation 17,602 21,883 26,565 31,817 33,405 35,025 35,675 28,424 29,5ll 30,672
Health, education and welfare 19,047 19,870 19,050 21,470 24,609 24,596 25,519 26,847 23,749 24,199
Culture and recreation 13,169 13,982 14,731 17,118 18,179 18,853 17,266 16,001 16,763 16,337
Pension and retirement contributions 11,081 14,204 19,937 21,796 24,296 28,870 28,509 27,284 27,773 29,816
Employees' health insurance 14,256 16,168 16,133 16,941 18,089 19,119 23,573 25,212 25,902 26,0ll
Other postemployment benefits 13,629 14,950 15,700 17,307
Other 7,128 6,133 6,780 5,108 5,344 6,257 4,773 4,758 4,183 2,991
Debt service:
Principal 12,826 13,150 14,060 16,076 16,548 19,749 20,720 42,233 24,834 25,718
Interest 9,283 9,534 9,914 9,894 13, 116 12,790 14,584 14,841 15,032 14,345
Capital outlay 23,474 32,816 30,588 52,285 70,156 89,368 100,653 87,782 71,220 48,565
Total Expenditures 229,595 260,114 285,110 337,431 403,508 440,158 456,578 446,971 395,916 376,822
Revenues over (under) Expenditures 1,920 4,439 5,731 (14,681) (39,931) (63,442) (98,272) (70,499) (20,281) (18,176)
Other Financing Sources (Uses):
Sale of assets 1,593 1,486 82 5 3,470 58 10 6 153
Capital leases 1,474 1,369 404 2,403 2,187 1,026 1,948 47 2,521 1,307
State Revolving Fund loans 1,504 25 6,255 1,916 280 6,811 9,257 4,569 4,991
Sale of bonds 1,725 30,000 25,000 85,000 50,000 45,000 50,480
Issuance of bond anticipation notes (BAN s) 19,000
Refunding bonds 24,595 31,607 47,510
Premium on bonds 3,025 972 3,099 185 2,078 17,570
Refunding bonds/BANs issuance costs (129) (218) (19)
Payment to refunded bond escrow agent (25,885) (32,699) (45,352)
Retirement of refunded debt (9,635)
Transfers in 39,440 42,119 45,691 59,139 64,929 56,697 61,495 56,099 59,971 51,356
Transfers out (39,440) (42,119) (45,691) (59,139) (64,929) (56,697) (61,495) (56,099) (59,971) (51,356)
Total other financing sources 4,792 35,965 26,483 95,452 7,573 51,549 27,750 56,388 7,243 66,872
Net change in fund balances $ 6,712 $ 40,404 $ 32,214 $ 80,771 $ (32,358) $ (11,893) $ (70,522) $ (14,lll) $ (13,038) $ 48,696
Debt service as a percentage of
noncapital expenditures 10.8% 10.3% 9.7% 9.0% 9.3% 9.0% 10.4% 15.9% 12.3% 13.9%
Unaudited -see accompanying independent auditors' report.
127 -
Table 5
COUNTY OF HA WAil
Real Property Assessed Values by Classification and Tax Rates
Last Ten Fiscal Years
(Values in Thousands)
Fiscal
Year
Class of
ProEerty
Value of
Net Taxable
Buildin~
Building
Tax Rates
Per $1000
Value of
Net Taxable
Land
Land
Tax Rates
Per $1000
Value of
Net Taxable
Real ProEert~
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
Homeowners 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
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
Homeowners 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
Continued next page.
-N 00
Table 5
Fiscal
Year
Class of
ProEerty
Value of
Net Taxable
Building
Building
Tax Rates
Per $1000
Value of
Net Taxable
Land
Land
Tax Rates
Per $1000
Value of
Net Taxable
Real ProEert~
2006 Improved 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 $16,478,034
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 $13,448,810 $22,707,625
Fiscal year 2007 total direct rate $7.96
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 $15,503,431 $26,269,843
Fiscal year 2008 total direct rate $7.94
Continued next page.
-N \,()
Table 5
Fiscal
Year
Class of
Pro Ee~
Value of
Net Taxable
Buildin~
Building
Tax Rates
Per $1000
Value of
Net Taxable
Land
Land
Tax Rates
Per $1000
Value of
Net Taxable
Real ProEerty
2009 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 $15,913,327 $29,505,635
Fiscal year 2009 total direct rate $7.68
2010 Residential $2,447,576 $ 7.10 $3,804,696 $ 8.10 $6,252,272
Apartment 3,602,514 8.10 1,546,866 8.10 5,149,380
Hotel and Resort 1,390,884 9.00 1,177,796 9.00 2,568,680
Commercial 733,260 9.00 928,999 9.00 1,662,259
Industrial 453,406 9.00 593,224 9.00 1,046,630
Agricultural & Native Forest 2,272,248 6.35 3,625,585 8.35 5,897,833
Conservation 46,321 8.55 337,860 8.55 384,181
Homeowners 2,388,048 5.55 2,686,692 5.55 5,074,740
Affordable Rental Housing 67,746 5.55 47,703 5.55 115,449
$13,402,003 $14,749,421 $28,151,424
Fiscal year 2010 total direct rate $7.75
2011 Residential $3,040,977 $ 9.10 $3,787,185 $ 9.10 $6,828,162
Apartment 2,660,600 9.85 1,144,873 9.85 3,805,473
Hotel and Resort 820,418 9.85 690,834 9.85 1,511,252
Commercial 713,161 9.10 908,741 9.10 1,621,902
Industrial 454,868 9.10 594,589 9.10 1,049,457
Agricultural & Native Forest 2,232,765 8.35 2,860,494 8.35 5,093,259
Conservation 48,766 9.85 341,496 9.85 390,262
Homeowners 2,479,437 5.55 2,573,527 5.55 5,052,964
Affordable Rental Housing 108,290 5.55 57,821 5.55 166,111
$12,559,282 $12,959,560 $25,518,842
Fiscal year 2011 total direct rate $8.39
Continued next page.
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-w
Table 5
Fiscal
Year
Class of
Property
Value of
Net Taxable
Building
Building
Tax Rates
Per $1000
Value of
Net Taxable
Land
Land
Tax Rates
Per $1000
Value of
Net Taxable
Real Property
2012 Residential $2,849,965 $ 9.10 $3,549,133 $ 9.10 $6,399,098
Apartment 2,772,190 9.85 1,147,288 9.85 3,919,478
Hotel and Resort 771,971 9.85 601,800 9.85 1,373,771
Commercial 676,465 9.10 837,094 9.10 1,513,559
Industrial 446,247 9.10 563,710 9.10 1,009,957
Agricultural & Native Forest 2,023,285 8.35 2,571,826 8.35 4,595,111
Conservation 44,874 9.85 323,210 9.85 368,084
Homeowners 2,480,038 5.55 2,524,611 5.55 5,004,649
Affordable Rental Housing 142,899 5.55 79,498 5.55 222,397
$12,207,934 $12,198,170 $24,406,104
Fiscal year 2012 total direct rate $8.52
2013 Residential $2,872,890 $ 10.05 $3,534,961 $ 10.05 $6,407,851
Apartment 2,403,216 10.85 1,069,999 10.85 3,473,215
Hotel and Resort 711,884 10.85 506,998 10.85 1,218,882
Commercial 661,323 10.05 806,131 10.05 1,467,454
Industrial 472,242 10.05 463,832 10.05 936,074
Agricultural & Native Forest 2,067,097 9.25 2,425,798 9.25 4,492,895
Conservation 41,505 10.85 287,375 10.85 328,880
Homeowners 2,525,018 6.15 2,502,822 6.15 5,027,840
Affordable Rental Housing 110,208 6.15 64,270 6.15 174,478
$11,865,383 $11,662,186 $23,527,569
Fiscal year 2013 total direct rate $8.46
Source: County of Hawaii, Department of Finance, Real Property Tax Division
NOTES: Assessed value is at 100% of market value.
Property is reassessed annually.
The County Council sets the tax rates annually.
There are no overlapping property tax rates in the County of Hawaii.
The improved residential and unimproved residential classes were combined into a single class beginning with the fiscal
years ending June 30, 2009.
Unaudited -see accompanying independent auditors' report.
Table 6
COUNTY OF HAW All
Principal Taxpayers
June 30, 2013 and 2004
Fiscal Year 2013 Fiscal Year 2004
Taxpayer Business
2012
Assessed
Valuation Rank
Percentage
of Total
Assessed
Valuation
2003
Assessed
Valuation
-
Rank
Percentage
of Total
Assessed
Valuation
Mauna Kea/Hapuna Beach Corps. Developer/Hotel $ 187,032,300 3 0.8% $
Hilton Land Investment 1 LLC Hotel 203,948,300 0.9%
Hualalai Investors LLC Developer/Hotel 197,921,000 2 0.8%
Orchid 09 LLC Hotel 115,055,200 5 0.5%
WB KD Acquisition LLC Developer 73,331,000 7 0.3%
Mauna Lani Resort Inc. Developer/Hotel 95,267,000 6 0.4% 102,923,900 7 0.7%
Hilton Resorts Corp. Timeshare 132,459,000 4 0.6%
Target Coporation Retailer 65,499,500 8 0.3%
Kohanaiki Shores LLC Developer 65,342,600 9 0.3%
Ho Retail Properties Devoloper 58,833,600 10 0.3%
BP Bishop Estate Developer 428,030,800 2.7%
Mauna Kea Development Corp Hotels/Dev. 238,141,700 2 1.5%
WB Kukio Resorts LLC Developer 190,704,200 3 1.2%
Global Resort Partners Hotel 156, 732,600 4 1.0%
Liliuokalani Trust Estate Land Trust 143,313,700 5 0.9%
FHR (ML) Hotel Holdings LLC Hotel 128,678,600 6 0.8%
1250 Oceanside Partners Developer 78,528,600 8 0.5%
Kaupulehu Makai Venture Developer 74,396,800 9 0.5%
RWHinc. Hotel 54,723,400 IO 0.4%
$1,194,689,500 5.2% $ 1,596,174,300 10.2%
Note: Gross valuation at January 1, 2012: $23,527,568,906
Gross valuation at January 1, 2003: $15,605,696,000
Source: County of Hawaii, Department of Finance, Real Property Tax Division
Unaudited -see accompanying independent auditors' report.
132 -
Table 7
COUNTY OF HAW All
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
*Current
Tax
1.m
*Current
Tax
Collections
*Percent
of Levy
Collected
*Delinquent
Tax
Collections
*Total
Tax
Collections
*Total
Collections as
Percent of
Current Levv
*Outstanding
Delinquent
Taxes
*Outstanding
Delinquent
Taxes as
Percent of
Current Levv
2004 $116,510,063 $113,501,954 97% $ 2,906,331 $ 116,408,285 100% $ 101,778 0%
2005 128,843,220 126,574,921 98% 2,148,316 128,723,237 100% 119,983 0%
2006 150,292,805 147,712,630 98% 2,425,897 150, 138,527 100% 154,278 0%
2007 181,541,559 177,326,418 98% 3,897,400 181,223,818 100% 317,741 0%
2008 207,892,224 202,702,858 98% 4,732,262 207,435,120 100% 457,104 0%
2009 226,638,993 219,437,531 97% 6,184,984 225 ,622,515 100% 1,016,478 0%
2010 215,262,172 207,501,307 96% 6,026,138 213,527,445 99% 1,734,727 1%
2011 215,729,273 208,106,918 96% 4,705,925 212,812,843 99% 2,916,430 1%
2012 204,868,717 198,274,186 97% 2,801,030 201,075,216 98% 3,793,501 2%
2013 197,043,064 191,154,491 97% 191,154,491 97% 5,888,573 3%
* Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Finance, Real Property Tax Division
Unaudited -see accompanying independent auditors' report.
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Table 8
COUNTY OF HAWAII
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(Amounts in thousands, except per capita)
Governmental Activities
Business-Type
Activities
Component
Unit Total Primary Government
Total Primary Government
and Component Unit
Fiscal
Year
General
Obligation
Bonds (c)
State
Revolving
Fund Loans
Capital
Leases
Bonds/Notes
Payable
Total
Primary
Government (a)
General
Obligation
Bonds
State
Revolving
Fund Loans
Percentage
of Personal
Income (b)
Per
Capita (b)
Percentage
of Personal
Income (b)
Per
Capita (b)
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 5.18% 1,661 5.91% 1,896
2009 291,363,218 26,697,288 4,179,805 944,124 323, 184,435 33,954,671 8,154,507 5.68% 1,817 6.41% 2,054
2010 294,164,535 30,469,767 4,552,290 916,117 330,102,709 31,730,311 11,984,221 5.77% 1,843 6.54% 2,087
2011 301,549,005 36,555,264 3,057,082 884,232 342,045,583 44,673,293 18,012,314 5.59% 1,827 6.62% 2,162
2012 281,773,498 29,050,626 3,803,618 851,306 315,479,048 42,481,176 17,872,813 4.99% 1,668 5.95% 1,987
2013 313,322,466 20,882,283 3,632,420 1,296,633 339,133,802 40,179,834 12,911,310 NIA NIA NIA NIA
NOTES:
(a) Includes governmental activities and business-type activities.
(b) See Table 11 for personal income and 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.
Table 9
COUNTY OF HA WAii
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal
Year
Debt
Applicable to
Legal Debt
Margin (a)
Percent of
Net Taxable
Property
Value (b)
Per
Capita (c)
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% 1,667
2010 277,481,633 1.0% 1,549
2011 305,615,691 1.2% 1,636
2012 317,699,844 1.3% 1,679
2013 315,676,941 1.3% NIA
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.
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Table 10
COUNTY OF HAWAII
Legal Debt Margin Information
Last Ten Fiscal Years
(Amounts in thousands)
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Debt limit (a) $ 1,933,701 $2,180,094 $2,471,705 $3,406,144 $ 3,940,476 $4,425,845 $ 4,222,714 $ 3,827,826 $ 3,660,916 $ 3,529,135
Debt applicable to limit 176,396 195,198 205,220 281,837 265,431 296,536 277,482 315,616 317,700 315,677
Legal debt margin (b) $ 1,757,305 $ 1,984,896 $2,266,485 $ 3,124,307 $3,675,045 $4,129,309 $ 3,945,232 $ 3,512,210 $ 3,343,216 $ 3,213,458
Debt applicable to the limit
as a percentage of debt limit 9.12% 8.95% 8.30% 8.27% 6.74% 6.70% 6.57% 8.25% 8.68% 8.94%
NOTES:
(a) State finance statutes limit the County's outstanding general debt to no more than 15 percent of the net assessed value of property. See Table 5 for net assessed value of property.
(b) The legal debt margin is the County's available borrowing authority under state finance statutes and is calculated by subtracting the net debt applicable to the legal debt
limit from the legal debt limit.
Legal Debt Margin Calculation for Fiscal Year 2013
Net assessed value $ 23,527,569
Debt limit (15% ofnet assessed value) $ 3,529,135
Debt applicable to limit 315,677
Legal debt margin $ 3,213,458
Unaudited -see accompanying independent auditors' report.
Table 11
COUNTY OF HAW All
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30,
*Resident
Population
as of July 1
*Personal
Income
(thousands
of dollars)
*Per
Capita
Personal
Income
School
Enrollment
Unemployment
Rate
2003 158,442 $ 3,869,362 $ 24,421 29,635 4.6%
2004 162,852 $ 4,223,829 $ 25,937 29,827 3.9%
2005 168,237 $ 4,638,838 $ 27,573 30,262 3.3%
2006 173,536 $ 5,064,624 $ 29,185 30,539 3.0%
2007 177,733 $ 5,509,169 $ 30,997 30,618 3.4%
2008 181,506 $ 5,899,236 $ 32,502 30,408 5.7%
2009 183,629 $ 5,517,497 $ 30,047 30,138 9.9%
2010 185,381 $ 5,717,885 $ 30,844 29,741 10.0%
2011 187,229 $ 6,114,237 $ 32,656 30,103 9.7%
2012 189,191 $ 6,318,657 $ 33,398 30,314 8.3%
* Amounts reflect subsequent adjustments
Source: County of Hawaii, Department of Research and Development
Unaudited -see accompanying independent auditors' report.
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Table 12
COUNTY OF HAW AI'I
Principal Employers, County of Hawaii
June 30, 2013 and 2004
2011 (a) 2004
Employer Employees Rank
Percentage
of Total County
Employment
-
Employees Rank
Percentage
of Total County
Employment
State of Hawaii 7,962 10.1% 7,608 10.0%
County of Hawaii 2,630 2 3.3% 2,291 2 3.0%
United States Government 1,429 3 1.8% 1,221 3 1.6%
Hilton Waikoloa Village 935 4 1.2% 1,100 4 1.4%
KTA Super Stores 750 5 0.9% 785 5 1.0%
Walmart 741 6 0.9%
Four Seasons Resort Hualalai 650 7 0.8% 557 8 0.7%
The Fairmont Orchid, Hawaii 616 8 0.8% 600 6 0.8%
Mauna Kea Beach Hotel 513 9 0.6% 556 9 0.7%
Mauna Lani Resort (Operations) Inc. 450 10 0.6%
Mauna Lani Bay Hotel 580 7 0.8%
Hapuna Beach Prince Hotel 542 10 0.7%
Total 16,676 21.0% 15,840 20.7%
Total employee count 78,950 76,200
NOTES:
(a) Data for Fiscal Year 2012 and Fiscal Year 2013 are unavailable.
Source: County of Hawaii, Department of Research and Development
Unaudited -see accompanying independent auditors' report.
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Table 13
COUNTY OF HAWAII
Full-Time Equivalent County Government Employees by Function
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Function
General government:
County Council 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00
County Clerk 42.50 38.00 54.50 54.00 68.00 55.48 56.08 53.00 54.00 52.50
Legislative Auditor 5.00 5.00 5.00 4.75 3.75
Mayor 19.90 21.58 21.70 20.68 25.17 22.49 19.00 21.99 18.50 16.00
Corporation Counsel 38.00 41.00 39.00 39.98 33.00 30.00 32.00 29.00 29.00 27.00
Finance 90.00 88.00 91.00 94.49 102.89 128.44 123.89 121.89 123.35 131.37
Human Resources 24.00 26.00 24.50 27.46 28.98 28.96 27.98 25.49 25.48 24.00
Planning 31.00 31.50 35.00 36.00 47.00 48.00 49.00 49.49 48.00 50.00
Research & Development 12.00 13.00 13.20 14.48 15.00 15.00 14.00 14.00 12.00 12.00
Information Technology 15.00 14.00 17.00 17.00 17.00 16.00 15.48 16.00 16.00 16.00
Public Works Admin & Building 121.00 121.00 123.40 141.97 166.37 170.44 162.99 158.84 155.48 155.50
Public Safety:
Police 526.50 520.80 536.20 535.23 572.51 553.37 558.32 565.99 541.25 548.98
Fire 316.98 346.23 340.20 363.71 424.07 412.05 411.53 414.08 391.28 418.57
Liquor Control 11.00 11.00 13.00 12.00 14.48 14.00 14.00 14.00 15.00 14.00
Civil Defense 5.00 7.00 6.00 5.00 5.00 7.00 7.00 7.00 7.00 7.00
Prosecuting Attorney 86.00 83.00 86.50 93.00 96.49 103.00 98.24 99.00 91.49 99.49
Highways and Streets:
Mass Transit 5.00 7.00 6.00 5.00 7.00 6.00 7.00 7.00 7.00 8.00
Traffic and Highways 153.00 151.00 168.00 169.98 183.48 182.48 174.48 176.48 178.48 176.48
Sanitation:
Administration 5.00 18.00 19.50 19.49 19.98 19.49 16.98 18.49 17.00 17.00
Sewer 42.05 40.00 38.00 32.97 37.49 41.47 44.98 47.49 47.49 46.00
Vehicle Disposal 1.00 1.00 1.00 3.00 3.00 2.00 2.00 2.00 2.00 4.00
Solid Waste 56.75 57.80 69.00 86.49 87.49 93.49 93.00 95.00 99.00 98.00
Health, Education and Welfare:
Housing 42.48 43.48 39.50 43.97 46.95 44.95 47.44 47.48 43.48 41.00
Aging 10.00 10.00 12.50 13.00 12.00 12.00 11.00 12.00 13.00 11.00
Culture and Recreation 390.05 386.48 434.90 402.43 390.11 391.45 379.50 380.74 370.15 370.87
Total 2,053.21 2,085.87 2,198.60 2,240.33 2,412.46 2,411.56 2,379.89 2,390.45 2,319.18 2,357.51
Source: County of Hawaii, Department of Finance
Unaudited -see accompanying independent auditors' report.
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Table 14
COUNTY OF HA WAil
Operating Indicators by Function
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Function
Public Safety:
Police:
DUI arrests 900 964 1,163 1,354 1,397 1,395 1,452 1,468 1,403 1,176
Traffic citations issued 58,432 51,818 54,435 54,606 62,736 66,461 63,883 61,947 60,967 49,292
Fire:
Fire responses 1,207 888 897 1,095 892 751 889 731 684 654
Emergency medical/rescue responses 14,693 13,671 14,945 15,502 16,098 15,099 15,308 15,726 16,361 16,454
Inspections -Occupancy/Fire Protective Equipment 4,210 1,843 2,131 1,958 1,858 1,479 1,579 3,021 2,050 1,463
Sanitation:
Refuse disposed (tons per year) 201,011 225,051 222,945 223,144 210,199 172,431 154,914 166,455 152,949 153,581
Highways and Streets:
In-house street resurfacing (miles) 12 42 15 33 26 27 23 18 20 20
Parks and Recreation:
Pavilion permits issued 1,739 1,908 1,888 1,744 2,055 2,310 2,340 4,667 2,805 2,775
Camping permits issued 4,627 4,765 5,146 5,200 3,870 3,998 4,290 4,019 4,450 5,175
Rounds of golf 80,015 79,101 74,677 82,182 76,648 80,229 80,407 83,358 72,162 71,352
Zoo attendance 156,184 163,176 171,958 172,315 163,601 182,286 172,737 172,677 213,537 245,715
Transit:
Bus passengers NIA NIA 711,608 727,677 821,359 908,651 1,060,057 1,149,042 1,315,222 1,269,550
Public Works:
Building permits issued 4,418 5,350 5,883 5,165 4,507 3,929 3,234 3,039 3,258 4,754
Electrical permits issued 3,896 4,750 5,097 5,072 4,569 3,869 3,602 3,821 4,080 5,137
Plumbing permits issued 1,907 3,888 4,557 4,368 3,622 2,983 2,638 2,071 1,749 2,001
Sign permits issued 46 63 50 51 75 62 62 58 55 52
Source: County of Hawaii, Individual Departments
Unaudited -see accompanying independent auditors' report.
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Table 15
COUNTY OF HAW All
Capital Asset Statistics by Functions
Last Ten Fiscal Years
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Function
Public Safety:
Police:
Stations 8 8 8 8 8 8 8 8 8 8
Substations 3 13 13 13 10 10 10 10 10 8
Fire stations 20 20 20 20 20 20 20 20 20 20
Highways and Streets:
County streets (miles) 903 903 907 927 942 943 944 946 954 945
Streetlights 8,949 9,017 9,027 9,246 9,308 9,404 9,592 9,864 9,883 9,939
Parks and Recreation:
Parks 119 121 122 123 123 143 143 143 144 145
Gyms and recreation centers 38 38 38 38 38 61 61 61 62 62
Sanitation:
Sanitary sewers (miles) 53 53 53 58 100* 100*
*GIS database utilized beginning FY 2008
Ill* Ill* 112* 112*
Source: County of Hawaii, Department of Research and Development
Unaudited -see accompanying independent auditors' report.
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