HomeMy WebLinkAboutCAFR 2014COMPREHENSIVE
ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30,2014
COUNTY OF HAWAll
Hilo, Hawaii
William P. Kenoi
Mayor
WalterLau
Managing Director
Prepared by
The Department of Finance
Nancy Crawford
Director of Finance
COUNTY OF HAW All
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal I
GFOA Certificate of Achievement 8
Organization Chart 9
List ofElected Officials 10
List of Principal Officials II
FINANCIAL SECTION
Report of Independent Auditors 13
Management's Discussion and Analysis 16
Basic Financial Statements:
Government-wide Financial Statements:
Statement.ofNet Position 28
Statement of Activities 30
Fund Financial Statements:
Balance Sheet -Governmental Funds 32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net 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 88
FINANCIAL SECTION (Continued)
Combining and Individual Nonmajor Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds 90
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances -Nonmajor Governmental Funds 94
Schedules of Revenues, Expenditures, and Changes in Fund Balances
Budget and Aetna! (Budgetary Basis):
Highway Fund 97
Sewer Fund 98
Solid Waste Fund 99
Cemetery Fund l 00
Parking Meter Fund l 0 l
Vehicle Disposal Fund l 02
Bikeway Fund l 03
Workforce Investment Act Fund l 04
Golf Course Fund 105
Geothermal Relocation and Community Benefits Fund l 06
Beautification Fund 107
Hawaii County Housing Agency I08
Park Dedication Fund I09
Combining Statement of Agency Funds Net Position -Agency Funds 110
Combining Statement of Changes in Assets and Liabilities -Agency Funds I I2
Combining Statement of Private Purpose Trust Net Position-Private Purpose Trusts I I6
Combining Statement of Changes in Net Position -Private Purpose Trusts I I 7
STATISTICAL SECTION
Table l -Net Position by Component 119
Table 2 -Changes in Net Position 120
Table 3 -Fund Balances, Governmental Funds 122
Table 4 -Changes in Fund Balance, Governmental Funds 123
Table 5 -Real Property Assessed Values by Classification and Tax Rates 124
Table 6 -Principal Taxpayers I28
Table 7 -Property Tax Levies and Collections 129
Table 8 -Ratios of Outstanding Debt by Type 130
Table 9 -Ratios of General Bonded Debt Outstanding 131
Table l 0 -Legal Debt Margin Information 132
Table I l -Demographic and Economic Statistics 133
Table 12 -Principal Employers, County of Hawaii 134
Table 13 -Full-Time Equivalent County Government Employees by Function I35
Table I 4 -Operating Indicators by Function I36
Table 15 -Capital Asset Statistics by Functions I37
INTRODUCTORY SECTION
William P. Kenoi
Mayor
Deanna S. Sako
Director
LisaK. Miura
Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street, Room 2103 • Hilo, Hawaii 96720
(808) 96!-8234 • Fax (808) 961-8569
January 12, 2015
The Honorable Mayor and Members of the Council
County ofHawai'i
25 Aupuni Street
Hilo, Hawai'i 96720
We transmit herewith the Comprehensive Annual Financial Report for the County of
Hawai'i, State ofHawai'i (the County), for the fiscal year July I, 2013 to June 30, 2014.
This report was prepared by the County's Department of Finance. The accuracy of the
financial statements and the completeness and fairness oftheir 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 mauner 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 ofthe County ofHawai'i at June 30, 2014 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 ofHawai'i's organization chart and
lists of elected and principal officials.
• The Financial Section contains management's discussion and analysis, the basic
financial statements, related notes, the combining and individual fund budgetary
financial statements, and the independent auditors' report.
• The Statistical Section includes selected financial and demographic information,
generally presented on a multi-year basis.
This report includes all funds of the County ofHawai'i, including its component unit, the
Department of Water Supply, established by the County Charter as a semi-autonomous
Hawai 'i County is an equal opportunity provider and employer.
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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 ofHawai'i, 4,028 square miles in size. It is twice as
large as the combined area of all the other inhabited islands in the Hawaiian Archipelago.
Since there is no other local or municipal government within the County, there are no
overlapping taxes and no overlapping debt. The County has an elected mayor and a nine
member council.
Economic Condition and Outlook
The island of Hawai 'i, commonly known as the Big Island, is located 214 miles from
Honolulu, the state capital; 2,200 miles from the west coast of the continental United
States; and 4,000 miles from Japan. The city ofHilo on the east side of the island serves
as the county seat as well as the transportation and financial center for the Big Island.
Hila'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.
The unemployment rate for the County for the current fiscal year is at approximately 6%,
which represents over a two percent decline from last year's rate for the same period of
8.3% and an even larger decline from the high of ll% in 20 ll.
Tourism-Tourism has always been one of the major industries 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 Parle A popular attraction, the park is
the most visited site in the state, with almost 3.7 million visitors each fiscal year for the
past two fiscal years. However, the County is less dependent on this industry than the
other islands in the State, which is fortunate considering that the overall number of
tourists to the island declined slightly (4%) in the current year.
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Construction -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. According to the Economic Forecast by First
Hawaiian Bank, private building permits are up to about $60 million per month and
single-family quarterly building permits have increased from $1 0-$13 million per month
in 20 II to $20 million per month earlier this year.
Several large construction projects are on the horizon for each side of the island. The
west side of the island is experiencing increased activity in residential construction with
several projects moving forward due to the resolution of issues surrounding the
infrastructure at Hokulia. Construction also continued with the Hawaii Community
College's PaJama Nui campus and several substantial highway projects, which include
includes the Hawaii Community College and the widening of the Queen Kaahumanu
Highway ($75 million) and completion of Phase III of the Saddle Road ($32 million). A
large portion of the east side construction activity focuses on the Hilo harbor where
construction has begun on the new inter-island cargo facility and another $47 million is
anticipated to be spent on Phase II and III, which does not include the $5 million to be
spent on demolition ofpart of the Pier I to allow larger ships access to the port.
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. 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 ofthe current observatories and the creation
of new jobs with the development of the Thirty Meter Telescope (TMT) by the TMT
Observatory Corporation. On October 7, 2014, the dedication and groundbreaking
ceremony for the TMT was held. It is anticipated that the construction and equipment
costs will approximate $1.2 billion and once it becomes operational in 2021, 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 -The Police Department conducted various recruitments, resulting in the
hiring of30 police recruits, eight police radio dispatchers, five inter-governmental
movements, three school crossing guards, one custodian, one clerk and one secretary.
Internally, there were 33 temporary promotions to police officer III, five promotions to
police sergeant, four promotions to detective, and four promotions to police lieutenant.
The Accreditation Section assisted in raising the bar on professionalism within the Police
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Department. In August 2015, the department will once again be under review by
independent assessors to retain accreditation, which the department earned in November
2012.
Housing-Construction on Na Kahua Hale 0 Ulu Wini ("Ulu Wini", formerly !mown as
Kaloko Housing Program) located in North Kona continued through fiscal year 2014.
Completing construction of final 20 units for a total of 96 units for this project. 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.
Kamakoa Nui is a master planned community in Waikoloa that 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. The first sales were recognized in this current
fiscal year with twelve homes sold.
For the Future
Public Safety-Securing funding for the South Kona Police Station continues to remain a
goal of the Hawai' i Police Department along with planning for a new station in the Puna
District to replace the soon to be retired Kea'au Police Station.
The Police Department has completed extensive research into the process ofprocuring a
modernized and fully integrated Computer Aided Dispatch (CAD) and records
Management System (RMS) to better serve the community and that system has been put
out for bid with the award expected to be announced in early 2015. Additionally, the
Police department is one of several County Departments that collaborated on
modernizing the County's Radio System which will be getting under way in late 2014.
Public Works-The Department of Public Works began reconstructing the four-lane
roadway and Pauahi Street/Kamehameha Avenue intersection, on March 3, 2014.
Estimated completion is mid-2015. The Federal Highway Administration is paying
eighty (80) percent of the $13 million estimated cost and the County the remaining
twenty (20) percent.
The following projects are in the design phase:
• Kawailani/Iwalani Intersection Improvement Project (STIP),
• Manono Street Improvements Project (STIP),
• Kapi'olani Street Extension Project,
• Alii Drive Shoulder Improvements Project,
• Komohana Street Reconstruction Project
• Henry Street Reconstruction Project.
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The following projects are in the planning phase:
• Ali'i Drive Culvert Replacement Project (STIP)
• Kuakini Phase II Project (STIP),
• Upper Waianuenue Ave Improvement Project (STIP),
• Mamalahoa Highway (Waimea) Widening Project (STIP),
• Kamehameha Avenue Reconstruction Phase II Project,
• Mamalahoa Highway (Waimea) Improvements Project,
• Nani Kailua Extension,
• Lako Street Extension Project.
Other Financial Information
Internal Control
The management of the County is responsible for establishing and maintaining an
internal control structure designed to ensure that tbe 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 (I) the cost of a control should not exceed the benefits likely to
be derived; and (2) tbe valuation of costs and benefits requires estimates and judgments
by management.
Budgetary Control
The County maintains budgetary controls to ensure tbat 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 tbe annual
appropriated operating budget. Project-length financial plans are adopted for tbe 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 tbe 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 witb
tbe 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
tbey will be honored during the following year. As demonstrated by the statements and
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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 ofdeposit, repurchase agreements, and agency notes. The
average yield on deposits and investments was .26%.
The County's policy is to minimize credit and market risks while maintaining a
competitive yield on its portfolio. Accordingly, with the exception of$295,104 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 both a slightly higher value of net taxable real property and building tax
rates, the County experienced an increase of $20.5 million in property tax revenues from
the prior year. This was however offset by substantial increases in employment costs due
to negotiated bargaining unit pay raises, the end of furloughs and increases in associated
fringe benefits.
After temporarily forgoing its employer contributions relating to the pre-funding of its
postemployment benefits other than pension for the past two years, the County made a
contribution of $3.17 million.
Other Information
Independent Audit
The County Charter requires an annual audit by independent certified public accountants.
N&K CP As Inc. 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. Four bargaining units have
contracts that will expire on June 30, 2017.
Certificate ofAchievement
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 ofHawai'i for its Comprehensive Annual Financial Report for the fiscal year
ended June 30, 2013. This was the twenty-sixth 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
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annual financial report. This report must satisfY both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our
current Comprehensive Annual Financial Report continues to meet the Certificate of
Achievement Program's requirements, and we are submitting it to the GFOA to
determine its eligibility for another certificate.
Acknowledgments
The preparation of this report was made possible by the efficient and dedicated services
ofthe 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.
~4 ·~fJ~
DEANNASAKO
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, 2013
Executive Director/CEO
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I County Council I
I
I I
County
Clerk
Legislative
Auditor
Departments under
direct supervision of the
Managing Director:
Corporation Counsel
Finance
Planning
Environmental Management
Research & Development
Public Works
Parks & Recreation
Information· Technology
I County Electorate I
I Mayor J
Office of Management:
Managing Director r-
Agencies under
direct supervision of the
Managing Director:
Civil Defense
Office ofAging
Mass Transit
Office ofHousing &
Community Development
I Prosecuting Attorney I
I
Departments under
commissions and
administrative supervision
of the Mayor:
Human Resources
Police
Liquor Control
Fire
Water Supply
(semi-autonomous)
County of Hawaii
Organization Chart
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County of Hawaii
Elected Officials
June 30, 2014
Administrative Officers (Term: 2012-2016)
William P. Kenoi Mayor
Mitchell Roth Prosecuting Attorney
County Council (Term: 2012-2014)
J Yoshimoto Chair
KarenEoff Vice Chair
Brenda Ford Member
Greggor Hagan Member
Dru Mamo Kanuha Member
Zendo Kern Member
Dennis "Fresh" Onishi Member
Valerie Poindexter Member
Margaret Wille Member
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Principal Officials
June 30, 2014
County Clerk Stewart Maeda
Legislative Auditor BonnieNims
Managing Director Walter Lau
Deputy Managing Director Randy Kurohara
Corporation Counsel Molly Stebbins
Director of Finance Nancy E. Crawford
Planning Director Duane Kanuha
Director of Personnel Sharon Kamahele-Toriano
Director ofResearch and Development Laverne Omori
Chief of Police Harry S. Kubojiri
Fire Chief Darren Rosario
Director of Public Works Warren Lee
Director ofEnvironmental Management Bobby Jean Leithead-Todd
Parks and Recreation Director Clayton Honma
Manager-Chief Engineer, Department of Water Supply Quirino Antonio, Jr.
Civil Defense Administrator Darryl Oliveira
Director ofLiquor Control Gerald Takase
Mass Transit Administrator Tiffany Kai
Executive on Aging Alan Parker
Administrator, Office of Housing and
Community Development Stephen Arnett
Director ofinformation Technology Donald F. Jacobs, Jr.
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FINANCIAL SECTION
~~ AMERICAN SAVINGS BANK TOWER
1001 BISHOP STREET. SUITE 1700
• ~N&K CPAs, Inc. HONOLULU, HAWAII96813-3696
ACCOUNTANTS I CONSULTANTS T (8081 524-2255 F (808) 523-2090
INDEPENDENT AUDITOR'S REPORT
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 (County), as of
and for the fiscal year ended June 30, 2014, 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 fiscal
year ended June 30, 2014, 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.
Auditor's 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 auditor's
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 auditor
considers 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
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N&K CPAs, Inc.
ACCOUNTANTS I CONSULTANTS
significant accounting estimates made by management, as well as evaluating the overall
financial statement 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 of Hawai'l, State of Hawai'i as of
June 30, 2014, and the respective changes in financial position and, where applicable, cash
flows thereof and the budgetary comparison for the general fund for the fiscal year then ended
in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis (pages 16 through 26) and schedule of funding progress
for the Hawaii Employer Union Health Benefit Trust Fund (page 88) 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
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N&K CPAs, Inc.
ACCOUNTANTS I CONSULTANTS
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.
Adjustment to Prior Period Financial Statements
As discussed in Note 1 (page 58) to the financial statements, the County has adjusted its 2013
financial statements to retroactively apply the change in accounling for deferred bond costs,
unamortized loss on advanced refunding of bonds, and deferred inflows of resources as
required by the provisions of Government Accounting Standards Board Statement No. 65, Items
Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this
matter.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
January 12, 2015, 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 at a future date. 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
January 12, 2015
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MANAGEMENT'S DISCUSSION AND ANALYSIS
This section ofthe County ofHawai'i's (the County) Comprehensive Annual Financial Report
presents a narrative overview and analysis ofthe financial activities ofthe County for the fiscal
year ended June 30, 2014. 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 ofthe County exceeded its liabilities at the end ofthe fiscal year by $808.0 million
(net position). This amount includes a negative balance of$16.9 million in unrestricted net
position, a decrease of$18.1 million from the prior year, which is explained in the sections
below.
• As of the close ofthe current fiscal year, the County's governmental funds reported combined
ending fund balances of $206.0 million, an increase of $10.7 million from the prior year.
Approximately 43 percent of this total amount, $89.5 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 $46.3
million, or 19 percent oftotal general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the County's basic financial
statements. The County's basic financial statements comprise three components: (I)
Government-wide 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
ofthe County's finances, in a manner similar to a private-sector business.
The statement of net position presents information on all ofthe 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 ofthe 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 ofthe government-wide financial statements distinguish functions ofthe 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 oftheir costs through user
fees and charges (business-type activities). The governmental activities ofthe County include
public safety, highways and streets, health, education and welfare, culture and recreation,
sanitation and general government. The business-type activities of the County include rental
housing for senior citizens and families.
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The government-wide financial statements include not only the County itself (!mown 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
ofthe 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 (I) 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 ofthe government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact ofthe
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
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.
-17
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, 2014 and 2013
Primar;y Government
Assets:
Current and other assets
Capital assets, net
Total assets
Governmental Activities
2013 Cas
2014 restated)
$ 260,511,277 $ 253,214,295
1,052,246,842 1,009,857,355
1,312,758,119 1,263,071,650
Business-!n~e Activities
2014 2013
$ 1,153,595 $ 1,111,875
1,577,149 1,611,888
2,730,744 2,723,763
Total
2013 (as
2014 restated)
$ 261,664,872 $ 254,326,170
1,053,823,991 1,011,469,243
1,315,488,863 1,265,795,413
Deferred Outflows
Of Resources:
Total Assets and Deferred
Outflows of Resources
1,283,292
1,314,041,411
1,589,564
1,264,661,214 2,730,744 2,723,763
1,283,292
1,316,772,155
1,589,564
1,267,384,977
Liabilities:
Long-term liabilities
outstanding
Other liabilities
Total liabilities
474,116,332
32,625,472
506,741,804
465,209,668
34,788,387
499,998,055
1,208,300
59,845
1,268,145
1,296,633
66,685
1,363,318
475,324,632
32,685,317
508,009,949
466,506,301
34,855,072
501,361,373
Deferred Inflows
Of Resources:
Total Liabilities and
797,272 718,241 797,272 718,241
Deferred Inflows
Of Resources 507,539,076 500,716,296 1,268,145 1,363,318 508,807,221 502,079,614
Net position:
Net investment in
capital assets
Restricted
Unrestricted
734,889,023
89,620,936
IJ8,007,624)
699,326,156
64,437,707
181,055
368,849
1,093,750
315,255
1,045,190
735,257,872
89,620,936
(16,913,874)
699,641,411
64,437,707
1,226,245
Total net position $ 806,502,335 $ 763,944,918 $ 1,462,599 $ 1,360,445 $807,964,934 $765,305,363
-18
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 ofthe County, assets exceeded liabilities by $808.0 million at the
close ofthe most recent fiscal year.
By far the largest portion ofthe 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 of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the County's net position (II 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 two of its
three categories of net position, both for the government as a whole, as well as for its separate
governmental activities. All three categories of net position are positive for its business-type
activities.
The County's net position increased by $42.7 million during the current fiscal year, which was a
decrease of $41.3 million (49%) from the increase that was experienced last fiscal year. One of
the main reasons for the lower increase in net position is due to a $50.0 million decrease in capital
grants and contributions related to highways and streets as compared to the prior fiscal year. This
substantial decrease was partially offset by a $7.8 million increase from that of the prior fiscal
year in capital grants and contributions related to culture and recreation.
The County's net capital assets increased by $42.4 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 ofthe increase in capital assets on page 23.
The County's long-term liabilities outstanding increased by $8.8 million (2 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 liability for post
closure remediation costs relating to closure ofthe County's two metal salvage facilities. 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 ofthe increase in long-term
debt outstanding on page 24.
-19
Condensed Statements of Activities
For the Fiscal Years Ended June 30, 2014 and 2013
Primary Government
Governmental Activities Business-type Activities Total
20!4 2013 (as 2014 2013 2014 2013 Cas restated) restated)
Revenues:
Program revenues:
Charges for services $ 40,900,135 $ 34,930,495 $ 468,018 $ 432,057 $ 41,368,153 $ 35,362,552
Operating grants and contributions 42,957,370 44,4!0,353 127,119 123,800 43,084,489 44,534,153
Capital grants and contributions 62,370,497 !07,584,670 62,370,497 107,584,670
General revenues:
Property taxes 221,260,681 200,775,779 221,260,681 200,775,779
Other taxes 28,546,783 28,206,334 28,546,783 28,206,334
Grants and contributions, unrestricted 17,705,917 17,750,132 17,705,917 17,750,132
Investment earnings (loss) 815,606 (81,020) !,739 1,416 817,345 (79,604)
Other 5,574,147 2,320,838 342,275 5,574,147 2,663,113
Total revenues 420,13!,136 435,897,58! 596,876 899,548 420,728,012 436,797,129
Expenses:
General government 59,448,042 55,616,102 59,448,042 55,616,102
Public safety !63,889,!13 151,975,049 l63,889,ll3 151,975,049
Highways and streets 38,670,!45 42,2!9,903 38,670,145 42,219,903
Health, education and welfare 28,343,056 28,001,020 494,722 496,017 28,837,778 28,497,037
Culture and recreation 25,590,117 22,121,336 25,590,117 22,121,336
Sanitation 48,721,810 38,505,086 48,721,810 38,505,086
Interest on long-term debt l2,9II,436 14,30!,921 l2,9II,436 14,301,921
Total expenses 377,573,719 352,740,417 494,722 496,017 378,068,441 353,236,434
Increase in net position 42,557,417 83,157,!64 102,154 403,531 42,659,571 83,560,695
Net position at beginning of year,
as previously stated 763,944,918 682,085,644 1,360,445 956,914 765,305,363 683,042,558
Cumulative effect of accounting change (!,297,890) (I ,297 ,890)
Net position at beginning of year,
as adjusted 763,944,9!8 680,787,754 1,360,445 956,914 765,305,363 68!,744,668
Net position at end of year $ 806,502,335 $ 763,944,918 $ 1,462,599 $ 1,360,445 $ 807,964,934 $ 765,305,363
Analysis of Changes in Net Position
Governmental activities. Governmental activities increased the County's net position by
$42,6 million or basically all of the total growth in net position of the County.
The primary reason for the $15.8 million ( 4 percent) decrease in total revenues was due to Capital
grants and contributions decreasing by approximately $45.2 million, which related mostly to
decreases in highways and streets projects. This substantial decrease was partially offset by
increases in the other revenue sources. The most significant increase of $20,5 million was in real
property taxes, which was due to a slight increase in the value of net taxable real property and
building tax rates as evidenced in the accompanying statistical tables, The second largest
increase in revenues was in Charges for services of $6.0 million from the prior year, with the
largest percentage relating to the area of highways and streets.
Total expenses increased by $24,8 million with 89 percent of the increase resulting from
increases in the areas of Public safety and Sanitation. There was an increase of $11.9 million in
Public safety expenditures of which $5,5 million was due to increases in salaries and wages and
$3,5 million was due to increases in related employee benefits including post employment
-20
$180,000,000 ~----------------------------
$160,000,000 ~----~· --------------------
$140,000,000 +---------; --------·Expen•e.-.Program-revenu~•~------
$120,000,000 +-----
$100,000,000 J-____: :;'--------------------
$80,000,000 +------'
$60,000,000 +--~·---:'..:---
$40,000,000
$20,000,000 l-{' .---"
$0 +--'"-'"--~.::_:_
benefits. The $10.2 million increase in Sanitation was mostly due to the liability resulting from
the closure ofthe County's two metal salvage facilities with remediation costs estimated at $8.8
million.
Expenses and Program Revenues -Governmental Activities
Year Ended June 30,2014
Revenue by Source -Governmental Activities
Year Ended June 30, 2014
Grants and contributions =~~~~=====~ilj
not restncted to spec1f1c
programs, $17,705,917
· · .!:··-~Capita! grants and
:·.:-\, contributions,
$62,370,497
Property taxes,
-21
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 sanitation (13 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 (53 percent), followed by capital grants and
contributions (IS percent) and operating grants and contributions (10 percent).
Business-type activities. Business-type activities increased the County's net position by
$102,154 versus an increase of $403,531 in the prior year. Expenses for health, education and
welfare account for all of the $494,722 of expenses with very little change from the prior year.
Charges for services were $468,018, operating grants and contributions were $127,119 and
investment earnings were $1,739, which were all comparable to the prior year. However, other
income decreased by $342,275 from the prior year due to the one-time recognition of the
forgiveness of a lease payable.
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$206.0 million, an increase of$10.7 million (5 percent) in comparison
with prior year. Approximately 43 percent ofthis total amount ($89.5 million) constitutes
unrestricted fund balance. The unrestricted portion ofthe fund balance is comprised of(!) $50.8
million in committed fund balance, (2) $36.9 million in assigned fund balance and (3) $1.8
million in unassigned fund balance. The remainder of the fund balance is divided between $3.8
million in nonspendable fund balance for inventory and $112.6 million in restricted fund balance.
Approximately 80 percent of the total restricted fund balance is due to restrictions relating to
highways, streets and abandoned vehicles ($67.0 million) and debt service ($23.6 million).
The general fund is the chief operating fund ofthe County. At the end ofthe current fiscal year,
unrestricted fund balance of the general fund was $46.3 million, while total fund balance
increased to $55.5 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 19 percent oftotal general fund expenditures, while total
fund balance represents 23 percent ofthat same amount.
The fund balance ofthe County's general fund increased by $1.6 million during the current fiscal
year as compared to an increase of $5.2 million in the prior year. Key factors in this decrease
($3.6 million) over last year's increase are as follows:
• A positive increase of$22.3 million (II percent) in real property tax revenues and $1.6
million (3 percent) decrease in combined Federal and State intergovernmental revenues. As
explained previously, the increase in real property tax revenues is due to a slight increase in
-22
the value of net taxable real property and building tax rates as evidenced in the accompanying
statistical tables.
• The positive impact of the increase in revenues was offset by increases of$20.3 million (9
percent) in expenditures and $7.6 million (16 percent) in transfers out. $8.6 million of the
total increase in expenditures is due to increases in salaries and wages from the prior year and
$7.2 million in associated employee benefits.
The fund balance of the County's capital projects fund increased by $5.4 million (7 percent)
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 state revolving fund loan
proceeds ($3 .I million); intergovernmental revenue ($8.8 million); private contributions ($21.2
million); real estate sales ($3.5 million) and transfers in ($5.9 million) being greater than capital
expenditures ($37.7 million) for the current fiscal year.
The debt service funds consist ofthe Bond Redemption Fund and the Interest Fund. These funds
have combined total fund balances of$23.6 million, all of which is restricted for the payment of
debt service. The net increase in the combined fund balances during the current year in the debt
service funds was $4.4 million (23 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 ofthe Kulaimano Elderly Housing Project (Kulaimano) at the end of the
year amounted to $759,878, and $333,872 for the Ouli Ekahi Affordable Housing Project (Ouli
Ekahi). The total net position for Kulaimano decreased by $5,886 and the net position for Ouli
Ekahi increased by $108,040. Other factors concerning the finances of these two funds have
already been addressed in the discussion ofthe County's business-type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the original budget and the final amended budget were primarily the result
of a $7.3 million increase in appropriations, the most significant single reason ( 46 percent) due to
an increase in the appropriations for capital outlays.
Differences between the final budget and the actual (budgetary basis) resulted in approximately
$536,000 less revenues than expected and $20.8 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 $4.1 million was
negated by an almost equal negative variance in intergovernmental revenues for both the
federal and state grants of $3.0 million and in total charges for services of $1.2 million.
• $3.2 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 ($1.3
million) and general government ($1.3 million).
• $2.1 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.
• $2.7 million is due to the fact that the increase in health premiums for employees' was lower
than originally anticipated.
-23
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, 2014 amounts to $1,054 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 4
percent.
Major capital asset events during the current fiscal year included the following:
• Construction continued on Na Kahua Hale 0 Ulu Wini Housing Project (formerly known as
Kaloko Housing Program) and costs at the end of the current fiscal year for Phases 3 and 4
totaled $8.1 million of which $2.7 was from the current fiscal year; the portion relating to the
completed Phase 3 was transferred to Building and Improvements.
• Construction continued on the County's Corporation Counsel and Liquor Control Offices
Hazardous Abatement and Restoration project; construction in progress as of the end ofthe
current fiscal year increased by $2.6 million to reach a total of $5.0 million, which was
transferred to Buildings and Improvements.
• Construction continued on the Kalaniana'ole Sewer Interceptor Line Rehabilitation Phase 2;
construction in progress as of the end of the current fiscal year increased by $2.1 million to
reach a total of$7.5 million, which was transferred to Buildings and Improvements.
• Construction continued on the Reed Island Bridge Rehabilitation; construction in progress as
oftbe end ofthe current fiscal year increased by $5.8 million to reach a total of$8.0 million,
which was transferred to Infrastructure.
• Construction continued on the La'aloa Avenue Extension with work also beginning on Phase
2 of the project; construction in progress for both phases as of the end ofthe current fiscal
year increased by $4.8 million to reach a total of $6.1 million.
• Construction continued on the Kaiminani Drive Roadway Improvements Phase I;
construction in progress as ofthe end ofthe current fiscal year had reached $8.3 million with
$2.2 million coming from tbe current fiscal year.
• Construction continued on the Kamehameha Avenue Reconstruction (Wailea Bridge to
Ponahawai) project; construction in progress as ofthe end of the current fiscal year had
reached $2.5 million with $2.1 million coming from the current fiscal year.
• Construction began on two projects associated with the Honoka 'a Rodeo Arena, which were
the accessibility improvements and the covered bleachers facility. Costs for both projects
reached a total of $2.8 million, which was transferred to Building and Improvements.
• $17.9 million of dedicated roads were received by the County in the current fiscal year.
• $6.6 million of various otber equipment and real property were dedicated and donated to the
County in the current fiscal year.
-24
Capital Assets
(net of depreciation)
June 30, 2014 and 2013
Primary Government
Governmental Activities Business~type Activities Total
2014 2013 2014 2013 2014 2013
Land and improvements $ 189,366,207 $ 163,565,168 $ 753,877 $ 753,877 $190,120,084 $ 164,319,045
Infrastructure assets 274,721,099 274,969,315 274,721,099 274,969,315
Ground and site improvements 70,934 75,280 70,934 75,280
Buildings and improvements 498,293,093 476,759,437 718,631 754,675 499,011,724 477,514,112
Easements 3,803,176 3,500,794 3,803,176 3,500,794
Equipment 48,353,349 48,585,309 33,707 28,056 48,387,056 48,613,365
Construction work in progress 37,709,918 42,477,332 37,709,918 42,477,332
Total $1,052,246,842 $1,009,857,355 $ 1,577,149 $ 1,611,888 $1,053,823,991 $1,011,469,243
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 $297.1 million and State
Revolving Fund loans of$22.9 million. At the end ofthe current fiscal year, the County had total
bonded debt outstanding of $297.I million. This entire amount was comprised of general
obligation bonds which are backed by the full faith and credit ofthe County.
The County's total bonded debt decreased by $16.2 million (5 percent) during the current fiscal
year due to 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
ofthe 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
ofthe County's outstanding general obligation debt. Currently the County's outstanding debt
represents 8 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 approximately 6.0
percent, which represents over a two percent decline from last year's rate for the same
period of 8.3 percent and an even larger decline from the high of 11.0 percent in 2011.
• The number of visitors to the County for the current fiscal year was approximately 1.42
million, with an approximately 4.0 percent decrease from the previous year's count of
1.47 million. However, for the most part, the County is less dependent on tourism than
the other islands in the State.
• 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 ofthe Thirty
Meter Telescope (TMT) by the TMT Observatory Corporation. On October 7, 2014, the
dedication and groundbreaking ceremony for the TMT was held. It is anticipated that the
"25"
construction and equipment costs will approximate $1.2 billion and once it becomes
operational in 2021, the TMT will have an annual operational budget of $27 million.
• The outlook for the construction industry based on building permits seems to be
improving despite a few challenges that remain in the areas ofthe rising cost of materials
and the workforce availability. According to the Economic Forecast by First Hawaiian
Bank, private building permits are up to about $60 million per month and single-family
quarterly building permits have increased from $10-$13 million per month in 2011 to $20
million per month earlier this year.
Several large construction projects are on the horizon for each side of the island. The
west side ofthe island is experiencing increased activity in residential construction with
several projects moving forward due to the resolution of issues surrounding the
infrastructure at Hokulia. Construction also continued with the Hawaii Community
College's Palama Nui campus and several substantial highway projects, which include
includes the Hawaii Community College and the widening of the Queen Kaahumanu
Highway ($75 million) and completion of Phase III ofthe Saddle Road ($32 million). A
large portion of the east side construction activity focuses on the Hila harbor where
construction has begun on the new inter-island cargo facility and another $47 million is
anticipated to be spent on Phase II and III, which does not include the $5 million to be
spent on demolition of part of the Pier I to allow larger ships access to the port.
These factors were considered in preparing the County's budget for the 2015 fiscal year.
At the end of the current fiscal year, unrestricted fund balance in the general fund was $46.3
million. The County has appropriated $25.5 million of this amount for spending in the 2015
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 ofthe 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.
-26
BASIC FINANCIAL STATEMENTS
-27
COUNTY OF HA WAil
Statement of Net Position
June 30, 2014
Primary Government
A
Governmental Business-type Component
Activities Activities Total Unit
ssets
urrent assets:
Cash and cash equivalents (notes 3 and 14) $ 49,657,131 $ 869,198 $ 50,526,329 $ 36,246,439
Restricted cash and cash equivalents (note 3 and 14) 46,741,035 40,334 46,781,369
Investments (note 3) 9,742,381 9,742,381
Restricted investments (note 3) 53,690,196 53,690,196
Receivables, net (note 4) 49,422,538 5,777 49,428,315 7,839,518
Receivable from improvement district
(notes 4 and 10)
66,993 66,993
Internal balances (note 5)
1,350 (1,350)
Inventories
3,794,963 3,794,963 1,143,074
Prepaid expenses
1,490 1,490 171,855
Real estate held for sale
2,935,216 2,935,216
Other
779,927 779,927
Total current assets 216,831,730 915,449 217,747,179 45,400,886
vestments (note 3)
26,130,593 200,184 26,330,777
stricted investments (note 3)
15,885,348 15,885,348
stricted cash and cash equivalents (note 3 and 14)
37,962 37,962 2,085,134
ceivable from improvement district, excluding
current portion (notes 4 and 10) 1,663,606 1,663,606
eliminary survey and investigation charges 3,732,743
pital assets (notes 6, 8 and 14):
Utility plant in service, net
255,317,677
Infrastructure assets, net
274,721,099 274,721,099
Ground and site improvements, net
70,933 70,933
Buildings and improvements, net
498,293,093 718,631 499,011,724
Equipment, net
48,353,349 33,708 48,387,057
Easements, net
3,803,176 3,803,176
Construction work in progress
37,709,918 37,709,918 7,358,252
Land and improvements
189,366,207 753,877 190,120,084 4,564,602
Total capital assets, net I ,052,246,842 1,577,149 1,053,823,991 267,240,531
273,058,408 Total noncurrent assets 1,095,926,389 1,815,295 1,097,741,684
Total assets 1,312,758,119 2,730,744 1,315,488,863 318,459,294
ferred Outflows of Resources
Deferred loss on refunding 1,283,292 1,283,292
tal Assets and Deferred Outflows of Resources 1,314,041,411 2,730,744 1,316,772,155 318,459,294
(Continued)
C
In
Re
Re
Re
Pr
Ca
De
To
-28
COUNTY OF HAWAII
Statement of Net Position
June 30, 2014
(Concluded)
Primary Government
Governmental Business-type Component
Activities Activities Total Unit
Liabilities
Current liabilities:
Accounts payable and accrued liabilities $ 12,714,764 $ 44,985 $ 12,759,749 $ 2,486,389
Accrued payroll 8,462,522 8,462,522 1,376,106
Advance collections -intergovernmental 3,314,289 711 3,315,000
Interest due on long-term debt 5,657,950 14,149 5,672,099 984,682
Bonds and loans payable, current portion net
(notes 10 and 14) 22,278,027 84,412 22,362,439 3,374,743
Compensated absences, current portion (note I 0) 8,342,581 8,342,581 441,666
Claims and judgments, current portion
(notes 10, 12 and 14) 2,915,021 2,915,021 68,675
Capital leases, current portion (notes 8 and I0) 1,066,531 1,066,531
Landfill costs payable, current portion
(notes 9 and I 0) 224,478 224,478
Customers' deposits 601,695
Other
2,475,947 2,475,947
Total current liabilities
67,452,110 144,257 67,596,367 9,333,956
oncurrent liabilities:
Bonds and loans payable, net
(notes 10 and 14) 318,789,131 1,123,888 319,913,019 49,482,475
Compensated absences (note 10) 25,642,863 25,642,863 1,135,714
Claims and judgments (notes 10, 12 and 14) 10,808,872 10,808,872 238,325
Capital leases (notes 8 and I 0) 1,241,710 1,241,710
Landfill costs payable (notes 9 and 10) 22,488,522 22,488,522
Unearned revenue, noncurrent
1,583,953
Customers' deposits
15,611,876
Other (note 13) 60,318,596 60,318,596
Total noncurrent liabilities 439,289,694 1,123,888 440,413,582 68,052,343
Total liabilities 506,741,804 1,268,145 508,009,949 77,386,299
eferred Inflows of Resources
Deferred Inflows -Other 797,272 797,272
otal Liabilities and Deferred
Inflows of Resources 507,539,076 1,268,145 508,807,221 77,386,299
et Position
et investment in capital assets 734,889,023 368,849 735,257,872 216,468,447
estricted for:
Capital projects
46,753,013 46,753,013
Debt service (note 10)
23,576,248 23,576,248
Highways, streets and abandoned vehicles 12,668,047 12,668,047
Public access open space 4,713,485 4,713,485
Other 1,910,143 1,910,143
nrestricted (18,007,624) 1,093,750 (16,913,874) 24,604,548
Total net position
ee accompanying notes to the basic financial statements.
$ 806,502,335 $ 1,462,599 $ 807,964,934 $241,072,995
-29
N
D
T
N
N
R
U
S
COUNTY OF HAWAll
Statement of Activities
For the Fiscal Year Ended June 30,2014
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government $ 59,448,042 $ 2,495,917 $ 2,070,680 $ 5,531,849
Public safety 163,889,113 5,562,424 20,164,816 4,685
Highways and streets 38,670,145 13,901,679 1,728,448 48,338,507
Health, education and welfare 28,343,056 559,381 18,219,695 15,367
Culture and recreation 25,590,117 1,954,213 68,627 8,453,770
Sanitation 48,721,810 16,426,521 705,104 26,319
Interest on long-term debt 12,911,436
Total governmental activities 377,573,719 40,900,135 42,957,370 62,370,497
Business-type activities:
Health, education and welfare 494,722 468,018 127,119
Total primary government $ 378,068,441 $ 41,368,153 $ 43,084,489 $ 62,370,497
Component unit:
Water (note 14) $ 54,306,190 $ 48,310,623 $ $ 10,299,452
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 ofyear, as previously stated
Cumulative effect of accounting change
Net position, beginning of year, as adjusted
Net position, end of year
See accompanying notes to the basic financial statements.
-30
Net (Expense) Revenue and Changes in Net Position
Primary Govermnent
Govermnental
Activities
Business-type
Activities
Component
Unit
$ (49,349,596)
(138,157,188)
25,298,489
(9,548,613)
(15,113,507)
(31,563,866)
(12,911,436)
(231,345,717)
(231,345,717)
$
100,415
100,415
$ (49,349,596)
(138,157,188)
25,298,489
(9,548,613)
(15,113,507)
(31,563,866)
(12,911,436)
(231,345,717)
100,415
(231,245,302)
$
4,303,885
221,260,681
10,380,341
10,792,967
7,373,475
17,705,917
815,606
5,574,147
273,903,134
1,739
1,739
221,260,681
10,380,341
10,792,967
7,373,475
17,705,917
817,345
5,574,147
273,904,873
226,696
226,696
42,557,417 102,154 42,659,571 4,530,581
765,659,726 1,360,445 767,020,171 236,542,414
(1,714,808) (1,714,808)
763,944,918 1,360,445 765,305,363 236,542,414
$ 806,502,335 $ 1,462,599 $807,964,934 $ 241,072,995
-31
COUNTY OF HAWAil
Governmental Funds
Balance Sheet
June 30,2014
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Assets
Cash and cash equivalents (note 3) $ 8,101,976 $ 41,444,758 $ 46,851,432 $ 96,398,166
Investments (note 3) 39,743,842 45,977,282 19,727,394 105,448,518
Receivables, net (note 4) 22,045,275 1,160,441 2,683,028 25,888,744
Due from other governmental funds (note 5) 705,593 1,874,282 69,530 2,649,405
Due from other nongovernmental funds (note 5) 1,350 1,350
Receivables from other governments (note 4) 19,773,218 3,173,661 586,915 23,533,794
Inventories 3,794,963 3,794,963
Real estate held for sale 2,935,216 2,935,216
Other 468,512 311,415 779,927
Total assets ~ 24 633 319 $ 26 565 64Q $ ZQ 23l Q64 $261 430 083
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable $ 3,440,806 $ 6,223,500 $ 3,050,458 $ 12,714,764
Accrued payroll 7,393,593 1,068,929 8,462,522
Due to other governmental funds (note 5) 1,458,029 409,049 782,327 2,649,405
Due to other nongovernmental funds (note 5)
Advance collections-intergovernmental (note 7) 2,042,023 1,165,939 106,327 3,314,289
Other 1,909,322 5,098 561,527 2,475,947
Total liabilities 16 243 773 7,803,586 5 569 568 29,616,927
Deferred Inflows of Resources:
Unavailable revenue 22,842,547 286 900 2 724 970 25,854,417
Fund balances:
Nonspendable: Inventory 3,794,963 3,794,963
Restricted for:
Debt service (note 10) 23,576,248 23,576,248
Highways, streets and abandoned vehicles 54,374,443 12,668,047 67,042,490
Public access open space 4,713,485 4,713,485
Other 745,865 15,382,259 1,164,278 17,292,402
Committed to:
Budget stabilization 5,367,886 5,367,886
Disaster and emergencies 5,428,818 5,428,818
Lower Puna area 4,938,635 4,938,635
Rental assistance and subsidy 2,282,439 2,282,439
Sanitation 12,194,717 12,194,717
Self insurance 1,283,680 1,283,680
Highways, streets and abandoned vehicles 827,600 4,557,474 5,385,074
Parks and recreational projects 3,079,495 86,517 3,166,012
Zoning change impact mitigation (fair share) 5,398,416 5,398,416
Other 714,398 4,195,960 468,171 5,378,529
Assigned to:
Subsequent year's budget 25,545,000 25,545,000
Other 6,128,075 5,216,981 11,345,056
Unassigned 1,824,889 1,824,889
Total fund balances 55,547,059 88,475,154 61,936,526 205,958,739
Total liabilities and fund balances ~ 24 633 312 $ 26 565 ~10 $ 10231064 $261 43Q Q83
See accompanying notes to the basic financial statements.
-32
COUNTY OF HAW All
Reconciliation of the Governmental Fonds Balance Sheet to the Statement of Net Position
June 30,2014
Total fund balances -governmental funds
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
Infrastructure assets, net
Buildings and improvements, net
Equipment, net
Easements, net
Construction work in progress
Total capital assets, net
Deferred amounts on refunding are reported as deferred outflows of
resources in the government-wide financial statements but are not
reported in the governmental fund statements
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)
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
Interest on long-term debt
Capital leases
Compensated absences
Claims and judgments
Landfill costs payable
Pollution remediation
Other Postemployment Benefit Obligation (OPEB)
Total long-term liabilities
Net position of governmental activities
See accompanying notes to the basic financial statements.
-33
$ 205,958,739
189,366,207
274,721,099
498,293,093
48,353,349
3,803,176
37,709,918
1,052,246,842
1,283,292
25,057,145
(339,336,559)
(5,657,950)
(2,308,241)
(33,985,444)
(13,723,893)
(22,713,000)
(8, 770,000)
(51,548,596)
(478,043,683)
$ 806,502,335
COUNTY OF HAWAll
Governmental Funds
Statement ofRevenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Revenues
Property taxes $223,481,503 $ $ $223,481,503
Public service company taxes 10,380,341 10,380,341
Fuel taxes 7,373,475 7,373,475
Public utility franchise taxes 10,792,967 10,792,967
Licenses and permits 7,932,958 11,684,894 19,617,852
Intergovernmental 48,830,066 8,844,696 17,581,906 75,256,668
Charges for services 3,728,783 15,663,717 19,392,500
Investment earnings (losses) 1,051,850 645,839 5,389 1,703,078
Other 3,816,087 24,704,185 1,563,524 30,083,796
Total revenues 299,221,588 34,194,720 64,665,872 398,082,180
Expenditures
Current:
General government 36,659,186 19,550 36,678,736
Public safety 104,991,128 6,229,784 111,220,912
Highways and streets 2,525,821 17,744,534 20,270,355
Health, education and welfare 7,030,116 16,040,110 23,070,226
Culture and recreation 17,415,015 918,875 18,333,890
Sanitation 1,027,084 28,921,920 29,949,004
Pension and retirement
contributions (note 13) 28,783,471 4,248,684 33,032,155
Employees' health insurance 24,866,245 1,920,081 26,786,326
Other postemployrnent benefits 3,170,000 3,170,000
Other 1,712,964 1,524,818 3,237,782
Debt service:
Principal 551,219 18,461,371 19,012,590
Interest 41,493 14,602,833 14,644,326
Capital outlay 13,643,090 37,725,580 51,368,670
Total expenditures
Excess (deficiency) ofrevenues
over (under) expenditures
242,416,832
56,804,756
37,725,580
(3,530,860)
II 0,632,560
(45,966,688)
390,774,972
7,307,208
(Continued)
-34
COUNTY OF HAWAll
Governmental Funds
Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014
(Concluded)
Other Total
Capital Governmental Governmental
General Proiects Funds Funds
Other Financing Sources (Uses)
Sale of assets $ 10,264 $ $ $ 10,264
Increase in capital leases (notes 8 and I 0) 13,817 13,817
State Revolving Fund loans (note 10) 3,072,577 3,072,577
Issuance of bonds (note I 0)
Premium on bonds (note 10)
Refunding bonds (note I 0)
Payment to refunded bond escrow
agent (note I 0)
Retirement of refunded debt (note I 0)
Transfers in (note 5) 5,863,047 55,374,541 61,237,588
Transfers out (note 5) (55,532,884) (5,704,704) (61,237,588)
Total other financing sources (uses) (55,508,803) 8,935,624 49,669,837 3,096,658
Net change in fund balances 1,295,953 5,404,764 3,703,149 10,403,866
Fund balances at beginning of year 53,948,607 83,070,390 58,233,377 195,252,374
Increase in reserve for inventories 302,499 302,499
Fund balances at end of year $ 55,547,059 $ 88,475,154 $61,936,526 $205,958,739
See accompanying notes to the basic financial statements.
-35
COUNTY OF HAWAll
Reconciliation of the Change in Fnnd Balances of Governmental Fnnds
to the Statement of Activities
For the Fiscal Year Ended June 30,2014
Net change in fund balances -total governmental funds
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in govermnental 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
Dedicated and contributed property
Depreciation expense and loss on disposals
Excess of capital outlay over depreciation expense
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:
State Revolving Fund loans
Capital leases
Total debt proceeds
Repayment of long-term debt is reported as an expenditure in govermnental
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
State Revolving Fund loan repayments
Capital lease payments
Total long-term debt repayment
Because some revenues will not be collected for several months after the
County's fiscal year end, they are not considered 11 available11 revenues and
are 11 deferred11 in the governmental funds. Unearned revenues decreased by
this amount this year.
$ 10,403,866
54,80 I ,851
24,540,091
(36,952,455)
42,389,487
(3,072,577)
(13,817)
(3,086,394)
16,648,372
1,026,222
1,337,996
19,012,590
(2,171,662)
(Continued)
-36
COUNTY OF HAWAll
Reconciliation of the Change in Fund Balances of Governmental Funds
to the Statement of Activities
For the Fiscal Year Ended June 30, 2014
(Concluded)
Some items reported in the statement ofactivities do not involve current
financial resources and therefore are not reported as expenditures in
governmental funds. These activities are:
Increase in inventories
Increase in Other Postemployment Benefit Obligation (OPEB)
Increase in compensated absences
Increase in claims and judgments
Increase in landfill closure/postclosure care costs
Increase in pollution remediation costs
Amortization ofpremium from bond issuance
Amortization of deferred loss on refunding
Net decrease in accrued interest
$ 302,499
(13,388,094)
(1,820,334)
(1,319,431)
(728,000)
(8,770,000)
1,577,653
(306,272)
461,509
Net additional expenses (23,990,470)
Change in net position of governmental activities $ 42,557,417
See accompanying notes to the basic financial statements.
-37
COUNTY OF HAWAil
General Fnnd
Statement ofRevenues, Expenditures, and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
Revenues:
Taxes and assessments:
Property taxes
Public service company taxes
For the Fiscal Year Ended June 30, 2014
Original Final
Budget Budget
$ 219,400,000 $ 219,600,000
10,145,000 10,145,000
Actual
(Budgetary
Basis)
$ 223,481,503
10,380,341
Variance
Positive
(Negative)
$ 3,881,503
235,341
Total taxes and assessments 229,545,000 229,745,000 233,861,844 4,116,844
Licenses and permits:
Nonbusiness licenses and permits 3,355,500 3,355,500 3,657,112 301,612
Business licenses 1,873,068 1,873,068 1,753,415 (119,653)
Street use 2,399,600 2,399,600 2,522,431 122,831
Total licenses and permits 7,628,168 7,628,168 7,932,958 304,790
Intergovermnental:
Federal:
Programs for the aged 2,224,785 2,224,785 1,724,734 (500,051)
Community development block grants 2,805,552 2,805,552
HOME program grant 394,441 394,441
Law enforcement 2,314,967 2,659,858 1,758,216 (901,642)
Other 2,851,500 2,917,884 2,176,571 (741,313)
Total federal 7,391,252 JI,002,520 8,859,514 (2,143,006)
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 6,443,506 9,646,406 8,783,402 (863,004)
Total State 38,100,098 41,302,998 40,439,994 (863,004)
Total intergovernmental revenue 45,491,350 52,305,518 49,299,508 (3,006,0 1 0)
Charges for services:
General govermnent 5,780,561 5,780,561 5,052,098 (728,463)
Culture and recreation 1,341,900 1,364,500 1,124,714 (239,786)
Highways and streets 1,476,500 1,476,500 1 ,216,181 (260,319)
Public safety 112,123 112,123 115,272 3,149
Total charges for services 8,711,084 8,733,684 7,508,265 (1,225,419)
Fines and forfeitures 1,373,500 1,373,500 585,417 (788,083)
Rents 218,040 218,040 199,938 (18,102)
(Continued)
-38
COUNTY OF HAWAll
General Fnnd
Statement ofRevenues, Expenditures, and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues (continued):
Interest and penalties $ 200,000 $ 200,000 $ 496,056 $ 296,056
Miscellaneous 4,357,598 4,602,410 4,386,565 (215,845)
Total revenues 297,524,740 304,806,320 304,270,551 (535,769)
Expenditures:
Current:
General government:
Finance 11,062,763 11,095,132 10,341,563 753,569
General govermnent building 5,078,894 5,173,694 5,075,999 97,695
Legislative 4,262,904 3,409,189 3,077,753 331,436
Automotive equipment 5,948,589 5,952,589 5,267,945 684,644
Law 2,677,876 2,739,876 2,533,928 205,948
Research and development 3,520,714 3,583,534 3,383,729 199,805
Planning and zoning 3,274,512 3,274,512 2,892,951 381,561
Mayor's office 1,492,014 1,505,014 1,496,765 8,249
Engineering 1,335,168 1,335,168 1,224,625 110,543
Information technology 2,441,339 2,442,339 2,065,896 376,443
Human resources 1,833,258 1,836,068 1,728,504 107,564
Public works administration 1,390,004 1,316,004 1,264,243 51,761
Elections 904,598 918,598 665,867 252,731
Legislative auditor 793,955 793,955 627 881 166,074
Total general government 46,016,588 45,375,672 41,647 649 3,728,023
Public safety:
Police department 55,084,045 59,431,010 56,597,579 2,833,431
Fire department 38,642,008 39,151,592 37,857,106 1,294,486
Prosecuting attorney 8,660,019 8,711,993 7,166,596 1,545,397
Protective inspection 2,150,702 2,150,902 2,034,945 115,957
Liquor control 1,844,268 I ,867,868 1,654,886 212,982
Flood control 330,000 330,000 330,000
Civil defense agency 959,724 1,059,724 794,324 265,400
Animal control 1,982,500 1,982,500 1,961 875 20,625
Total public safety 109,653,266 114,685,589 108,397,311 6,288,278
Highways and streets:
Mass transit 3,461,171 3,466,194 2,646 435 819,759
(Continued)
-39
COUNTY OF HAW All
General Fnnd
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Expenditures (continued):
Current (continued):
Health, education and welfare:
Elderly activities
Office of aging
Education
Social programs
Cemeteries
Physical examination
$ 3,669,50 l
2,636,208
58,500
1,500,000
360,498
133,825
$ 3,788,501
2,636,223
58,500
1,500,000
391,498
133,825
$ 3,4Il,073
2,454,391
42,638
1,475,500
342,081
133,568
$ 377,428
181,832
15,862
24,500
49,417
257
Total health, education and welfare 8,358,532 8,508,547 7,859,251 649,296
Culture and recreation:
Community music 249,457 234,457 198,109 36,348
Organized recreation:
Maintenance 8,462,426 8,434,651 8,389,126 45,525
Recreation 2,686,605 2,821,422 2,600,993 220,429
Aquatics 2,375,686 2,291,086 2,194,080 97,006
Hoolulu park complex 1,020,214 1,025,814 972,314 53,500
Administration 1,753,489 1,947,555 1,811,776 135,779
Children's zoo 707,888 715,136 665,586 49,550
Summer/Intersession 544,085 548,085 351,135 196,950
Culture and arts 277,949 306,349 275,316 31,033
Elderly activities administration 580,789 612,389 563,272 49,117
Total culture and recreation 18,658,588 18,936,944 18,021,707 915,237
Sanitation:
Environmental management 1,069,283 1,069,283 994,678 74,605
Pension and retirement contributions 30,298,132 30,298,132 28,242,592 2,055,540
Employees' health insurance 27,500,000 27,500,000 24,842,599 2,657,401
Other postemployment benefits 3,180,000 3,180,000 3,180,000
Other 6,750,000 5,373,916 1,737,118 3,636,798
Total current 254,945,560 258,394,277 237,569,340 20,824,937
(Continued)
-40
COUNTY OF HAWAll
General Fund
Statement ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
(Concluded)
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Expenditures (continued):
Capital Outlay:
Community Development Block
grants (HUD) $ $ 2,980,363 $ 2,980,363 $
HOME Program 394,441 394,441
Total capital outlay 3,374,804 3,374,804
Total expenditures 254,945,560 261,769,081 240,944,144 20,824,937
Excess of revenues over expenditures 42,579,180 43,037,239 63,326,407 20,289,168
Other financing sources (uses):
Transfers out:
Housing Fund (1,402,916) (1,402,916) (I ,402,9 I6)
Solid Waste Fund (15,515,377) (15,520,377) (15,520,377)
Sewer Fund (1,739,548) (1,739,548) (1,739,548)
Golf Course Fund (330,000) (361,000) (361,000)
Capital Project Fund (158,343) (158,343)
Highway Fund (63,715) (63,715)
Disaster/Emergency Fund (250,000) (250,000) (250,000)
Public Access, Open Space, and Natural
Resources Preservation Fund (4,388,000) (4,563,000) (4,469,630) 93,370
Public Access, Open Space, and Natural
Resources Preservation Maintenance Fund (548,500) (573,500) (558,703) 14,797
Budget Stabilization Fund (250,000) (250,000) (250,000)
Debt Service Fund (39,898,751) (39,898,751) (39,638,084) 260,667
Total transfers out (64,323,092) (64,781,150) (64,412,316) 368,834
Total other financing uses
Excess (deficiency) of revenues and other
sources over (under) expenditures and other uses
Fund balance at beginning ofyear
(64,323,092)
(21,743,912)
53,948,607
(64,781,150)
(21,743,91 I)
53,948,607
(64,412,316)
(1,085,909)
53,948,607
368,834
20,658,002
Fund balance at end of year $ 32,204,695 $ 32,204,696 $ 52,862,698 $20,658,002
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAll
Proprietary Funds
Statement of Net Position
June 30,2014
Business-type Activities-
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Assets
Current assets:
Cash and cash equivalents (note 3) $ 579,485 $ 289,563 $ 869,048
Restricted cash and cash equivalents (note 3) 10,864 29,470 40,334
Imprest fund (note 3) 50 100 150
Receivables, net (note 4) 740 5,037 5,777
Prepaid expenses 1,490 1,490
Total current assets 592,629 324,170 916,799
Noncurrent assets:
Restricted cash and cash equivalents (note 3) 37,962 37,962
Investments (note 3) 200,184 200,184
Capital assets (note 6):
Land and site improvements 511,000 515,727 1,026,727
Buildings and equipment 1,244,354 479,014 1,723,368
Less accumulated depreciation (1,147,660) (25,286) (1,172,946)
Total capital assets 607,694 969,455 1,577,149
Total noncurrent assets 807,878 1,007,417 1,815,295
Total assets 1,400,507 1,331,587 2,732,094
Liabilities
Current liabilities:
Accounts payable 6,071 6,071
Internal Balances (note 5) 1,350 1,350
Security deposits payable from restricted assets I 0,864 28,050 38,914
Deferred revenue (note 7) 501 210 711
Interest payable 14,149 14,149
Notes payable, current portion (note I 0) 50,187 34,225 84,412
Total current liabilities 83,122 62,485 145,607
Noncurrent liabilities:
Notes payable (note 10) 760,850 363,038 1,123,888
Total liabilities 843,972 425,523 1,269,495
Net Position
Net investment in capital assets (203,343) 572,192 368,849
Unrestricted 759,878 333,872 1,093,750
Total net position $ 556,535 $ 906,064 $ 1,462,599
See accompanying notes to the basic financial statements.
-42
COUNTY OF HAWAll
Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Position
For the Fiscal Year Ended June 30,2014
Operating revenues:
Rental receipts from tenants
Rental subsidy from federal government -HUD
Laundry receipts
Other
Total operating revenues
Operating expenses:
Utilities
General and administration
Maintenance and repairs
Depreciation (note 6)
Total operating expenses
Operating income
Nonoperating revenues (expenses):
Investment income
Interest expense
Other income
Total nonoperating revenues (expenses)
Change in net position
Net position, beginning of year
Net position, end of year
See accompanying notes to the basic financial statements.
Business-type Activities-
Enterprise Funds
Kulaimano OuliEkahi
Elderly Affordable
Housing Housing
Project Project Total
$ 124,995 $ 326,595 $ 451,590
127,119 127,119
3,269 3,269
13,159 13,159
255,383 339,754 595,137
38,271 58,801 97,072
96,470 101,493 197,963
49,489 56,128 105,617
35,313 15,304 50,617
219,543 231,726 451,269
35,840 108,028 143,868
1,727 12 1,739
(43,453) (43,453)
(41,726) 12 (41,714)
(5,886) 108,040 102,154
562,421 798,024 1,360,445
$ 556,535 $ 906,064 $ 1,462,599
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COUNTY OF HAWAII
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2014
Business-type Activities
Enterprise Funds
Kulaimano Ouli Ekahi
Elderly Affordable
Housing Housing
Project Project Total
Cash Flows from Operating Activities
Receipts from tenants $ 124,852 $ 338,182 $ 463,034
Receipts from federal government-HUD 127,119 127,119
Payments to suppliers for goods and services (180,893) (220,760) (401,653)
Net cash provided by operating activities 71,078 117,422 188,500
Cash Flows from Capital and Related Financing Activities
Principal paid on notes payable (24,071) (64,262) (88,333)
Interest paid on notes payable (45,095) (45,095)
Purchase of capital assets (6,499) (9,379) (15,878)
Other receipts 31,304 31,304
Net cash used in capital and related financing activities (44,361) (73,641) (118,002)
Cash Flows from Investing Activities
Interest on investments 973 12 985
Net cash provided by investing activities 973 12 985
Net increase in cash and cash equivalents 27,690 43,793 71,483
Cash and cash equivalents at beginning of year (including
restricted cash and cash equivalents) 562,709 313,302 876,011
Cash and cash equivalents at end of year (including
restricted cash and cash equivalents) $ 590,399 $ 357,095 $ 947,494
Reconciliation of Operating Income to Net Cash
Provided by Operating Activities
Operating income $ 35,840 $ 108,028 $ 143,868
Adjustments to reconcile operating income to net cash
provided by operating activities:
Depreciation expense 35,313 15,304 50,617
Change in assets and liabilities:
Receivables, net (430) (368) (798)
Prepaid expenses 11 II
Accounts and other payables 1,075 (5,379) (4,304)
Deferred revenue (731) (163) (894)
Net cash provided by operating activities $ 71,078 $ 117,422 $ 188,500
Supplemental disclosure of cash flow information ~ Interest paid $ 45,095 $ $ 45,095
Noncash investing, capital and financing activities:
Net increase in fair value of investments $ 184 $ $ 184
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAll
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2014
Private-
Purpose Agency
Trusts Funds
Assets
Cash and cash equivalents (note 3) $ 1,575,569 $ 3,770,681
Investments (note 3) 3,048,195 193,238
Receivables:
Due from other agency funds 2,444
Other receivables 463 I 04,579
Total receivables 463 107,023
Total assets 4,624,227 $ 4,070,942
Liabilities
Due to other agency funds 2,444
Accrued liabilities 2,985,915
Advances payable 244,252
Assets held for the benefit of improvement districts 838,331
Total liabilities $ 4,070,942
Net Position
Held in trust for other parties 4,624,227
Total net position $ 4,624,227
See accompanying notes to the basic financial statements.
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COUNTY OF HAWAll
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30,2014
Private
Purpose
Trusts
Additions
Contributions:
Puna Geothermal Venture $ 50,000
Investment earnings:
Net increase in fair value of investments 17,434
Dividends 56,995
Interest 10,362
Total additions 134,791
Deductions
Claims Consultant 34,745
Grant payments 248,297
Total deductions 283,042
Change in net position (148,251)
Net position, beginning of year 4,772,478
Net position, end of year $ 4,624,227
See accompanying notes to the basic financial statements.
-46
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
The accounting policies ofthe County ofHawai'i (the County) conform to U.S. generally accepted
accounting principles (GAAP) as applicable to local governmental units. The following notes to
tbe 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 ofGASB
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, defines component units as legally separate
organizations for which the elected officials ofthe 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 iftl1e organization is fiscally dependent on the primary
government and is either able to impose its will on that organization or there is a potential for
the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. A primary government has the ability to impose its will on an
organization if it can significantly influence the programs, projects, activities or level of
services performed or provided by the organization. An organization has a financial benefit or
burden relationship with the primary government if any one ofthree conditions exist: (1) The
primary government is legally entitled to or can otherwise access tbe organization's resources;
(2) The primary government is legally obligated or has otherwise assumed the obligation to
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
finance the deficits of, or provide financial support to, the organization; or (3) The primary
government is obligated in some manner for the debt ofthe organization.
As required by GAAP as set forth in GASB Statement No. 14, No. 39 and No. 61, these basic
financial statements present the County of Hawai'i (the primary government) and its
component unit, the Department of Water Supply (the Department). This component unit is
included in the County's reporting entity because of its financial relationship with the County.
Discretely Presented Component Unit The component unit column in the basic financial
statements includes the financial data ofthe Department, a legally independent agency ofthe
County that is accounted for as an enterprise fund. It is reported in a separate column to
emphasize that it is legally separate from the County. The members of the Water Board, the
governing body of the Department, are appointed by the Mayor ofthe County and confirmed
by the County Council. The Department is granted corporate powers by state statute and the
County Charter. Although the County does not have the authority to approve or modifY the
Department's operational and capital budgets, the County has issued bonds on the
Department's behalf that are general obligations of the County. Because the County is
obligated to repay these bonds in the event of default by the Department, the County is
financially accountable for the debts ofthe Department. See Note 14 for component unit
disclosures for the Department. Complete financial statements of the Department can be
obtained from the Department of Water Supply, 345 Kekilana5'a Street, Suite 20, Hilo,
Hawai'i 96720.
Basic Financial Statements
The basic financial statements include both government-wide (based on the County as a
whole) and fund financial statements. Both the government-wide and fund financial
statements (within the basic financial statements) categorize primary activities as either
governmental or business-type. In the government-wide statement of net position, both the
governmental and business-type activities columns (a) are presented on a consolidated basis
by column, (b) and are reflected, on a full accrual, economic resource basis, which
incorporates long-term assets and receivables as well as long-term debt and obligations.
The government-wide statement of activities reflects both the gross and net costs per
functional category (general government, public safety, highways and streets, etc.) which are
otherwise being supported by general government revenues (property taxes, certain
intergovernmental revenues, etc.). The statement of activities reduces gross expenses
(including depreciation) by related program revenues, operating and capital grants. The
program revenues must be directly associated with the function (general government, public
safety, highways and streets, etc.) or a business-type activity. The operating grants include
operating-specific and discretionary (either operating or capital) grants while the capital grants
column reflects capital-specific grants. The net cost (by function or business-type activity) is
normally covered by general revenues.
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COUNTY OF HA WAI'I
Notes to the Basic Financial Statements
June 30, 2014
The government-wide focus is more on the sustainability of the County as an entity and the
change in aggregate financial position resulting from the activities of the fiscal period.
The fund financial statements' emphasis is on the major funds in either the governmental or
business-type categories. Nonmajor funds (by category) are summarized into a single column.
The governmental funds in the fund financial statements are presented using the current
financial resource focus and modified accrual basis of accounting. This is the manner in
which these funds are normally budgeted. This presentation is deemed most appropriate to (a)
demonstrate legal and covenant compliance, (b) demonstrate the source and use of liquid
resources, and (c) demonstrate how the County's actual experience conforms to the budget
fiscal plan. Since the governmental fund statements are presented using a different
measurement focus and basis of accounting than the government-wide statements'
governmental activities column, a reconciliation is presented on the page following each
statement, which briefly explains the adjustments necessary to transform the fund based
financial statements into the governmental activities column of the government-wide
presentation.
The County's fiduciary funds are presented in the fund financial statements by type (private
purpose and 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 activities) report
information on all of the nonfiduciary activities ofthe primary government and its component
unit. The effect of interfund activity have been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support. Likewise, the primary government is reported
separately from certain legally separate component units for which the primary government is
financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include (a) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and (b) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or
segment. Taxes and other items not included among program revenues are reported instead as
general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and
fiduciary funds, even though the latter are excluded from the government-wide financial
-49
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 ofthe County are recorded in individual funds.
Each fund is accounted for by providing a separate set of self-balancing accounts that
comprises its assets, deferred outflows of resources, liabilities, deferred inflows of resources,
reserves, fund equity, revenues and expenditures/expenses. The various funds are reported by
generic classification within the financial statements.
GASB Statement No. 34, Basic Financial Statements-and Management's Discussion and
Analysis-for State and Local Governments, sets forth minimum criteria (percentage of the
assets, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or
expenditures/expenses of either fund category or the governmental and enterprise combined)
for the determination of major funds. The nonmajor funds are combined in a column in the
fund financial statements and detailed in the combining section.
The County reports the following major governmental funds:
General Fund-The general fund is the general operating fund ofthe 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:
Kula'imano Elderly Housing Project-Used to account for the operation of a rental
housing project for low-income senior citizens located north ofHilo.
Ouli Ekahi Affordable Housing Project-Used to account for the operation of a 33-unit
single-family affordable rental housing project located in Waimea.
The County reports the following fiduciary funds:
Private-Purpose Trust Funds-Used to account for funds received from geothermal
developers to mitigate the effects of geothermal energy development. Also used to
account for investment income on funds received from import businesses at the port of
Hila and the related expenditures to promote health and safety on the Island of Hawai' i.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
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 No. 19 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 !-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 ofthe 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 ofthe current period.
Licenses and permits, charges for current services, fines and forfeitures, penalties and
miscellaneous revenues are recorded as revenues when received in cash because they are
generally not measurable until actually received. Real property taxes and State Revolving
Fund loan proceeds are considered available when collected.
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and
contractual requirements ofthe 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
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 deferred inflow of resources in its fund financial statements (see Note 7).
Deferred inflows of resources arise when potential revenue does not meet both the
"measurable" and "available" criteria for recognition in the current period. In subsequent
periods, when both revenue recognition criteria are met, the deferred inflow is removed from
the 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; (c) principal and interest on general long-term debt which are
recognized as expenditures when due; and (d) liabilities relating to pollution remediation .
The County applies all applicable GASB pronouncements, including the adoption of GASB
Statement No. 62, Codification ofAccounting and Financial Reporting Guidance Contained
in Pre-November 30, 1989 FASB (Financial Accounting Standards Board) and AICPA
(American Institute ofCertified 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.
Cash and Investments
Cash and cash equivalents include cash on hand, amounts in demand deposits and savings
accounts, and short-term investments with a maturity date of three months or less from the
date acquired by the County.
Investments consist of certificates of deposit, repurchase agreements, and securities with
original maturities exceeding three months. These include participating investment contracts
(U.S. government sponsored agency issues and negotiable certificates of deposit) as well as
nonparticipating investment contracts (time certificates of deposit and repurchase agreements).
Both categories of investments are stated at fair value (see Note 3). Valuations of investments
-52
COUNTY OF HAW AI' I
Notes to the Basic Financial Statements
June 30,2014
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
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 ofthe levy date. Taxes are
due and payable in two equal annual installments on August 20 and February 20. Accordingly,
real property taxes receivable as of June 30 are delinquent. Each delinquent installment bears
interest at I% per month and penalties of up to I 0% ofthe 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, 2014 of $745,865 are reflected as a restriction of general fund balance.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and
similar items), are reported in the applicable governmental or business-type activities columns
in the government-wide financial statements. Capital assets are defined by the County as
assets with an initial, individual cost of more than $1,000 and an estimated useful life in
excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at 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 ofthe asset are not capitalized.
-53
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 ofthe 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
Deferred Outflows of Resources and Deferred Inflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future
period and will not be recognized as an outflow of resources (expense or expenditure) until
that time. The County has one item that qualifies for reporting in this category. The County
reports the deferred loss on refunding as a deferred outflow of resources in its statement of net
position.
Deferred inflows of resources represent an acquisition of net position that applies to a future
period and will not be recognized as an inflow of resources (revenue) until that time. Property
taxes, fees and other non-exchange transactions received in the current fiscal year for the
ensuing fiscal year are reported as deferred inflows of resources. These amounts are deferred
and recognized as an inflow of resources in the period that the amounts become available.
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
-54
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
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 ofnet position along
with the estimated liability for social security and Medicare taxes and employers' retirement
contributions on those amounts.
Sick leave accumulates without limit. Sick leave can be taken only in the event of illness and
is not convertible to pay upon 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, 2014 totaled $69,787,000 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 ofthe 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 HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
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,
deferred outflows of resources, liabilities, and deferred inflows of resources, as well as
disclosure of contingent assets and liabilities at the date of the financial statements, and the
reported amounts of revenues, expenditures, and other financing sources and uses during the
reporting period. Actual results could differ from those estimates.
Fund Balances
When both restricted and unrestricted fund balances are available for use, it is the County's
policy to use restricted fund balance first, then unrestricted fund balance. Furthermore,
committed fund balances are reduced first, followed by assigned amounts, and then
unassigned amounts when expenditures are incurred for purposes for which amounts in any of
those unrestricted fund balance classifications can be used.
The County reports the following classifications:
Nonspendable Fund Balance-Nonspendable fund balances are amounts that cannot be
spent because they are either not in spendable form, or, for legal or contractual reasons,
must be kept intact. The County has inventory included in their nonspendable fund
balance.
Restricted Fund Balance-Constraints placed on the use ofthese resources are either
externally imposed by creditors (such as through debt covenants), grantors, contributors
or other governments or are imposed by law (under the Hawai'i Revised Statutes or
Connty ofHawai'i Charter).
Committed Fund Balance -Committed Fund Balances are amounts that can only be used
for specific purposes as a result of constraints imposed by the County Council via
ordinances and the County Code and can only be undone via the same manner. The
committed fund balance of the General Fund includes the portion of fund balance
committed to budget stabilization. The budget stabilization portion is authorized under
County Code §2-219 to §2-223 and additions are made via the County budget or
subsequent budget amendments. The fund balance may only be used when there is a
reduction in budgeted revenue and the director of finance determines that 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 pmtion of fund balance that is intended to balance
the subsequent year's budget, which is conveyed by the Mayor via his approval of
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
allotment requests and his approval of the current year's fund balance amount to be
included in the submittal for next year's annual budget ordinance.
Unassigned Fund Balance -This is the residual classification ofthe General 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 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 implemented this Statement in the fiscal year ended June 30,
2014.
In March 2012, GASB issued Statement No. 66, Technical Corrections-2012-An
Amendment ofGASB Statements No. 10 and No. 62. The objective ofthis 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
and did not have an impact on the County's financials for the fiscal year ended June 30, 2014.
In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for
Pensions -An Amendment ofGASB Statement No. 27. 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 ofthis 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 April2013, GASB issued Statement No. 70, Accounting and Financial Reporting for
Nonexchange Financial Guarantees. The requirements ofthis 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
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
that receive nonexchange financial guarantees. The requirements for this Statement are
effective for the County for periods beginning after June 15, 2013 and did not have an impact
on the County's financials for the year ending June 30, 2014.
In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date-An Amendment ofGASB Statement No. 68. 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 ofthat 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.
Accounting Change
The County implemented GASB Statement No. 65, Items Previously Reported as Assets and
Liabilities, and retroactively changed its method of accounting for debt issuance costs that
were previously capitalized and amortized over the life of the debt and are now recognized as
an expense in the period incurred. As a result, the County's net position as of June 30, 2013
was restated and decreased by $1,714,808. The effect on this change on the Statement of
Activities was to increase the annual amortization related to bond issuance premiums by
$124,533.
2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
Annual Budget
The County follows these procedures in establishing its operating and capital budgets:
• On or before March I, the Mayor submits to the County Council proposed operating and
capital projects budgets for the fiscal year commencing the following July I. 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 ofthe state legislature, but not
later than May 5.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
• The County Council conducts public hearings on the proposed operating and capital
budgets after March I 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 Jegalleve1 of
budgetary control is the department level because the Mayor can transfer funds from any
unencumbered appropriation to another within a department or agency without County
Council approval. During the year, the budget may be amended by action ofthe County
Council, except for appropriations required by Jaw and appropriations for debt service,
which may not be decreased or deleted. Supplemental appropriations were made during
the 2013-2014 fiscal year to recognize revenue from sources not anticipated at the time of
the original budget and to establish the authorization for such funds to be expended.
Such supplemental appropriations totaled $7.3 million in the general fund and $4.7
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,
Hawai'i County Housing Agency Fund and Park Dedication Fund.
• Appropriations for the operating budget lapse at the end ofthe fiscal year to the extent
that they have not been expended or encumbered. Appropriations for capital
expenditures that are not encumbered lapse at the end of two fiscal years following the
fiscal year that the appropriation was made.
• Formal budgetary integration is employed as a management control device during the
year for the General Fund, special revenue funds, and Capital Projects Fund. Formal
budgetary integration is not employed for debt service funds because effective budgetary
control is alternatively achieved through general obligation bond indenture provisions.
• The accompanying statement of revenues, expenditures and changes in fund balances
budget and actual (budgetary basis) for the General Fund presents a comparison of the
legally adopted budget with actual data on a budgetary basis. Accounting principles
applied for purposes of developing data on a budgetary basis differ significantly from
those used to present financial statements in conformity with GAAP. On the budgetary
basis, intergovernmental revenues are recognized when awarded by the granting agency,
encumbrances and unexpended allotments are treated as expenditures, accounts payable
are not accrued, and all leases are treated as operating leases. In preparing the financial
statements on a GAAP basis, accounts payable are accrued and treated as a reduction of
encumbrances for balance sheet presentation.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
Budget to GAAP Reconciliation
The following is a summary of the adjustments necessary to convert fund balances ofthe
County's General Fund from a GAAP basis to a budgetary basis at June 30, 2014:
Ending fund balance -GAAP basis $55,547,059
Encumbrance adjustments:
Beginning encumbrances and unexpended allotments 3,182,390
Ending encumbrances and unexpended allotments (5,954,985)
Other adjustments 88 234
Ending fund balance-Non-GAAP budgetary basis $52 862 698
3. CASH AND INVESTMENTS
The Director ofFinance is responsible for the safekeeping of all monies paid to the County.
The Director of Finance invests any monies ofthe County which in the Director's judgment
are in excess ofthe amounts necessary for meeting the day-to-day operating needs ofthe
County. Under Section 46-50 ofthe Hawai'i Revised Statutes, legally authorized investments
include obligations of or guaranteed by the U.S. government, obligations of the State,
federally insured savings and checking accounts, time certificates of deposit, and repurchase
agreements with federally insured financial institutions.
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, 2014 was $163,581,324 for the primary government and
$5,346,250 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 $175,980,325 at June 30, 2014. Ofthat amount, $175,685,221
represents bank balances covered by federal deposit insurance or by collateral held by the
County's fiscal agents in the name ofthe County. The remaining bank balances of$295,104
represent deposits held by a management agent and were uncollateralized. Accordingly, these
deposits were exposed to custodial credit risk. Custodial credit risk is the risk that in the event
of a bank failure, the County's deposits may not be returned to it. For checking and savings
accounts, time certificates of deposit, and repurchase agreements, the County requires, in
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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% ofthe 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 ofthe fiduciary
funds. The County's investments of funds not required for immediate payments are
predominately comprised of government sponsored securities (equivalent to the rating in U.S.
Treasuries), repurchase agreements and certificates of deposit, while the fiduciary funds also
hold equity securities.
The County's investments and maturities at June 30,2014 are as follows:
Maturity (in years)
Investments -Primary Government:
Certificates of deposit
Government sponsored securities
Fair Value
$ 66,282,958
39 365 744
$ I 05.648 702
Less than I
$ 63,632,761
$ 63 632.761
$ 2,650,197
$
I - 5
39 365 744
42 015 941
Investments-Private-Purpose Trusts:
Government sponsored securities
Equity securities
$
$
I 775 463
I 272 732
$ 1 775 463
Investments-Agency Funds:
Government sponsored securities $ 193 238 ~$~~~;;; $ 193 238
Interest Rate Risk: The County minimizes its exposure to interest rate risk by limiting the
maturities of investments to five years or less in compliance with state statute. The County's
policy is to hold investments until maturity and does not engage in trading for capital gains.
Credit Risk: The County's investment portfolio primarily consists of U.S. government or
agency obligations, bonds of government sponsored enterprises, time certificates of deposit
and repurchase agreements. These investments are either insured by the FDIC, secured by
collateral or carry a credit rating equivalent to U.S. Treasuries.
Custodial Risk: Custodial risk is the risk of loss from the failure of the counterparty, which is
defined as any entity that obtained an investment on behalf of the County. All ofthe County's
deposits including repurchase agreements are secured by collateral which is kept by a third
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 ofCredit Risk: State law limits deposits to no more than 60% ofthe total in
any one depository. The County seeks to further diversify its portfolio by purchasing from
different issuers, by purchasing different types 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, 2014,
investments were distributed as follows: Central Pacific Bank, 19.1 %; FTN Financial, 16.2%;
Multi Bank Securities, 17.0%; Stifel Nicolaus, 9.5%; First Hawaiian Bank, 25.6%; Raymond
James, 4.2%; Hawai'i National Bank, 4.2%; Territorial Savings Bank, 4.2%.
Restricted Cash and Cash Equivalents and Investments
Cash and cash equivalents and investments classified as restricted assets for the primary
government at June 30,2014 amounted to $116,394,875.
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 $72,260,275 at June 30, 2014.
Cash and investments in the Bond Redemption Fund and the Interest Fund are restricted to
debt service related payments and amounted to $23,868,178.
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
$14,563,839.
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 and maintenance of
lands or property entitlements for public outdoor recreation and education. Such amounts
totaled $745,865 and $4,878,422, respectively.
Tenant security deposits received by the County for the Kula'imano Elderly Housing Project
and the Ouli Ekahi Affordable Housing Project are recorded as restricted assets. Such funds
amounted to $10,864 and $29,470, respectively, at June 30,2014.
An operating reserve fund was established by the Ouli Ekahi Affordable Housing Project
pursuant to an agreement with the Hawai'i Housing Finance and Development Corporation,
who are the holders of the project's note. This restricted reserve amounted to $37,962 at June
30, 2014.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
4. RECEIVABLES
Receivables as of June 30, 2014, for the County's individual major funds and other funds in
the aggregate, including the applicable allowances for uncollectible accounts, are as follows:
Governmental activities:
Capital Other
General Projects Governmental
Fund Fund Funds Total
Real property taxes $22,992,843 $ $ ·-$22,992,843
Accounts receivable:
Sewer 2,126,220 2,126,220
Solid waste 1,768,764 1,768,764
Capital projects 1,160,441 1,160,441
Intergovernmental 19,773,218 3,173,661 586915 23,533,794
Gross receivables 42,766,061 4,334,102 4,481,899 51,582,062
Less: allowance for
uncollectibles (947,568) (1,211,956) (2, 159,524)
--
Net total receivables $41 818 423 $4 334 102 $3 262 243 $42 422 538
During fiscal year 2005, the County issued $3,887,493 in general obligation bonds on behalf
ofimprovement 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. During
fiscal year 2014, the County also issued $448,669 in general obligation bonds on behalf of
Improvement District No. 19, an agency fund. At June 30, 2014, the outstanding balance for
both Improvement Districts of $1,73 0,599 is reflected in the government-wide statement of
net position as a receivable (see Note I 0).
Business-type activities:
Enterprise
Funds
Accounts receivable:
Rent $9,624
Other 325
Gross receivables 9,949
Less: allowance for
uncollectibles (4,172)
Net total receivables $ 5,777
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
5. INTERFUND RECENABLES AND PAYABLES
Interfund receivables and payables consist of the following at June 30,2014:
Receivable Fund Payable Fund Amount
General fund Capital projects fund $ 408,593
Other governmental funds 297,000
705,593
Capital projects fund General fund 1,388,999
Other governmental funds 485 283
1,874,282
Other governmental funds General fund 69,030
Capital projects fund 456
Other governmental funds 44
69 530
Total $2.649.405
Other governmental funds Enterprise funds $1 350
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, 2014 consisted ofthe following:
Transfers out:
Other
General Governmental
Fund Funds Total
Transfers in:
Capital Projects Fund $ 158,343 $5,704,704 $ 5,863,047
Other governmental funds 55,374,541 55,374,541
$55 532 884 $5,104,104 $61 237 588
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.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
6. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2014 for the County was as follows:
Balance Balance
July I, Retirements/ June 30,
2013 Additions Transfers 2014
Governmental activities:
Capital assets not being depreciated:
Land and
improvements $ 163,565,168 $ 25,801,039 $ $ 189,366,207
Easements 3,427,578 375,598 3,803,176
Construction work in
progress 42,477,332 33,301,625 (38,069,039) 37 709 918
Total capital assets not
being depreciated 209,470,078 59,478,262 (38,069,039) 230,879,301
Capital assets being depreciated:
Buildings and
improvements 556,961,770 30,192,664 (301,818) 586,852,616
Equipment 125,084,893 7,994,004 (1,980,838) 131,098,059
Easements 439,300 439,300
Infrastructure 476 996 037 19 746 051 496,742,088
Total capital assets
being depreciated 1,159,482,000 57 932 719 (2,282,656) 1,215,132,063
Less accumulated depreciation for:
Buildings and
improvements (80,202,333) (8,386,395) 29,205 (88,559,523)
Equipment (76,499,584) (8,094,697) 1,849,571 (82,744,710)
Easements (366,084) (73,216) (439,300)
Infrastructure (202,026,722) (19,994,267) (222,020,989)
Total accumulated
depreciation (359,094,723) (36,548,575) I 878 776 (393,764,522)
Total capital assets
being depreciated,
net 800,387,277 21 384 144 (403,880) 821,367,541
Governmental
activities capital
assets, net $1 QQ2 851355 $ 8Q 862 406 ($38 412 219) $] Q52 246 842
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COUNTYOFHAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
July 1, Retirements/ June 30,
2013 Additions Transfers 2014
Business-type activities:
Capital assets not being depreciated:
Land $ 753,877 $ $ $ 753,877
Capital assets being depreciated:
Buildings and
improvements
Ground and site
improvements
Equipment
Total capital assets
being depreciated
1,593,187
272,850
117 781
I 983 818
15 878
15 878
(3,478)
(3.478)
1,593,187
272,850
130 181
1996218
Less accumulated depreciation for:
Buildings and
improvements
Ground and site
improvements
Equipment
Total accumulated
depreciation
(838,512)
(197,570)
(89,725)
(1,125,807)
(36,044)
(4,347)
(10,226)
(50,617)
3 478
3 478
(874,556)
(201,917)
(96,473)
(1,172,946)
Total capital assets
being depreciated,
net 858 011 (34,739) 823,272
Business-type
activities capital
assets, net $1611888 $(34132) $ $! 511142
In fiscal year 2013, 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, 2014, approximately $1.4 million was expended and capitalized.
The County is currently managing and assessing the effects ofthe lava flow from Kilauea
Volcano commonly referred to as the "June 27" lava flow. It is probable that subsequent to
fiscal year end, the path ofthe lava flow will cross the County road (Pahoa Village Road).
Estimates of any potential impairment to the value of Pahoa Village Road and any impact to
the basic financial statements cannot be made at this time. The County has made
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
arrangements and taken necessary steps to provide alternate travel routes for the citizens
impacted by the potential closnre of the road.
Depreciation expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government $ 2,790,708
Public safety 3,630,090
Highways and streets 21,452,599
Sanitation 4,963,296
Health, education and welfare 1,883,519
Culture and recreation 1,828,363
Total depreciation expense-governmental activities $36 548 575
Business-type activities:
Kula'imano Elderly Housing Project $35,313
Ouli Ekahi Affordable Housing Project 15 304
Total depreciation expense-business-type activities $50 617
7. DEFERRED INFLOW OF RESOURCES:
Deferred inflow ofresources consists ofthe following at June 30,2014:
Governmental activities:
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
Real property taxes $22,655,517 $ $ $ 22,655,517
Liquor control revenue 187,030 187,030
Sewer revenue 1,306,659 1,306,659
Housing revenue 41,942 41,942
Solid waste revenue 1,376,369 1,376,369
Sale of real estate 286 900 286,900
Total presented in
fund financial
statements 22,842,547 286,900 2,724,970 25,854,417
Less adjustments for
accrual of revenues (22,045,275) (286,900) (2, 724,970) (25,057,145)
Total government-
wide financial
statements $ 727212 $ $ $ 727212
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
8. LEASES
The County leases machinery and equipment under noncancellable leases expiring at various
dates through August 2018. These capital leases are financed from the resources of various
funds.
The estimated value ofthe leased machinery and equipment at the inception ofthe capital
leases and accumulated depreciation, amounting to $5,868,794 and $2, I 06,939, respectively,
and the related present value of the remaining obligations under the capital leases amounting
to $2,308,241 at June 30, 2014 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 April2032. Expenditures for such operating leases were
$1,767,009 for the fiscal year ended June 30,2014.
The future minimum payments under capital and operating leases at June 30, 2014 are as
follows:
Capital Operating
Leases Leases
Year Ending June 30:
2015 $1,108,953 $1,498,220
2016 722,519 1,302, II0
2017 408,484 971,741
2018 138,560 906,956
2019 521 306,751
2020-2024 1,070,047
2025-2029 116,423
2030-2032 I 266
Total minimum lease payments 2,379,037 $6.173 514
Less amount representing
interest (70,796)
Obligations under capital leases $2 308.241
9. SOLID WASTE LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS
Hilo Landfill The County owns and operates a landfill located in the city of Hilo. State and
federal laws require the County to place covers on certain landfill sites and to monitor and
maintain the sites for thirty years after the facility is closed. Although the closure and
postclosure care costs will be paid near and after the date that the landfill stops accepting
waste, the County recognizes a portion ofthe 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 ofthe
statement of net position date. At June 30, 2014, the County recognized a liability of
$14,431,000, based on the use of98% ofthe estimated capacity of the landfill. During the
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COUNTYOFHAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
fiscal year ended June 30,2014, there were no expenditures incurred for the closure ofthe
landfill. The remaining $299,000 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 one year. These amounts are based on what it would cost to
perform the required closure and postclosure care in 2014. 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 $16,550,000, based on what it
would cost to perform the required closure and postclosure care in 2014. Actual costs may be
higher due to inflation, changes in technology, or changes in regulations. Through
June 30, 2014, $8,268,000 was spent on closure and postclosure care ofthe landfill. The
remaining estimated liability of $8,282,000 is included in the government-wide statement of
net position. During the year ended June 30, 2014, $242,000 was spent on closure ofthe
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 ofthe landfill, and for the private
company to retain the overall management as well as perform all construction work on the
landfill cells. Under the terms of the contract, the County has no responsibility for
remediation, closure or postclosure care. Accordingly, no liability for this landfill is included
in the County's financial statements.
Financial Assurance For fiscal year 2014, 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
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
component. Local governments are required to satisfY each of the three components to pass
the annual test. Management believes that the County has satisfied each of the components of
the local government financial assurance requirements.
In fiscal year 20 13, the County closed its two metal salvage facilities located near the Hilo and
Kealakehe Transfer Stations. The anticipated liability ($8, 770,000) for the remediation costs
associated with these closures is included in the County's financial statements.
10. LONG-TERMDEBT
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 ofthe government-wide statement of net position for the
County for the fiscal year ended June 30, 2014:
Bonds Issue Bond Balance Bond Balance Due Within
Authorized Amount Julx 1 2013 Issues Retirements June 30 2Q]4 One Year
2003 Series A $ 36,310,000 $ 1,795,000 $ ($ 1,795,000) $ $
2004 Series A 30,000,000 2,890,000 (1,410,000) 1,480,000 1,480,000
2004 Ref Series B 19,545,000 6,815,000 (2,160,000) 4,655,000 2,270,000 2004 Ref Series C 5,050,140 1,139,164 (558,052) 58!,112 581,112
2006 Series A 25,000,000 19,825,000 (1,022,500) 18,802,500 1,072,500
2007 Series A 85,000,000 70,370,000 (3,360,000) 67,010,000 3,505,000 2007 Series B 20,820,000 13,545,000 (2,000,000) 11,545,000 2,105,000
2007 Series C 10,787,388 9,163,410 (860,904) 8,302,506 896,775
2008 Series A 50,000,000 44,790,000 (1,885,000) 42,905,000 1,970,000
2010 Series A 26,493,750 26,493,750 26,493,750 1,162,500
2010 Series B 18,506,250 18,506,250 18,506,250 798,750 2013 Series A 58,509,892 58,509,892 (1,660,929) 56,848,963 1,839,813
2013 Series B 21,010,000 21,0!0,000 21,010,000 1,715,000
2013 Series C 18,470,000 18,470,000 18,470,000
2013 PI Series A 448 669 448 669 448 662
19,396,450 425,951,089 313,322,466 448,669 (16,712,385) 297,058,750
Add unamortized
I 505 !52 premium 27 643 628 20942617 I 714 806 (] 577 653) 21 079 770
$453 524211 $334 265 083 $ 2163 415 ($18 22Q 038) $318138 520 $2Q 201 6Q2
The 20 l 0 Series B bonds were issued as bonds designated as "Recovery Zone Economic
Development Bonds" under the American Recovery and Reinvestment Act of2009. 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.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
General obligation bonds payable reported in the governmental activities section on the
government-wide statement of net position at June 30,2014 are comprised of the following
individual issues:
Public improvement (PI) and/or refunding bonds:
2004 Series A at 3.0% to 5.25%, due through 2014
2004 Refunding Series Bat 3.5% to 5.0%, due through 2015
2004 Refunding Series Cat 2.0% to 3.7%, due through 2014
2006 Series A at 4.0% to 5.0%, due through 2026
2007 Series A at 4.0% to 5.0%, due through 2027
2007 Series Bat 3.75% to 5.0%, due through 2018
2007 Series Cat 4.0% to 5.0%, due through 2021
2008 Series A at 4.0% to 6.0%, due through 2028
2010 Series A at 4.0% to 5.0%, due through 2030
2010 Series Bat 3.335% to 6.1 %, due through 2030
2013 Series A at 2.0% to 5.0%, due through 2033
2013 Series Bat 3.0% to 5.0%, due through 2024
2013 Series Cat 4.0% to 5.0%, due through 2025
2013 PI Series A at 2.75%, due through 2048
Total general obligation bonds payable
$ 1,480,000
4,655,000
581,112
18,802,500
67,010,000
11,545,000
8,302,506
42,905,000
26,493,750
18,506,250
56,848,963
21,010,000
18,470,000
448 669
$297 058 750
Annual debt service requirements to maturity for the above general obligation bonds are as
follows:
Governmental Activities
Fiscal year ending June 30: Principal Interest
2015 $ 19,396,450 $ 13,571,316
2016 19,649,001 12,688,668
2017 18,060,827 11,823,626
2018 18,945,749 10,930,196
2019 19,866,529 10,049,055
2020-2024 96,638,779 37,422,695
2025-2029 83,209,607 15,416,306
2030-2034 21,042,917 2,011,286
2035-2039 72,059 29,376
2040-2044 82,527 18,764
2045-2049 94 305 6 613
Total $221 Q58150 $113,261901
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
Bond Premiums
At June 30,2014, total unamortized bond premiums were $21,079,772, which are being
amortized over the remaining life ofthe respective bond issues.
Bonds Authorized and Unissued
The County Council has authorized the issuance of $357.6 million in general obligation bonds
to finance specified capital improvement projects. At June 30,2014, $213.7 million was not
yet issued.
Subsequent Events On October 16,2014, the County issued a general obligation bond
anticipation note (BAN) in the total amount of $10,000,000. These notes were issued to
provide funds for the acquisition and construction ofmajor capital facilities and bear
interest at 1.03% and had an original maturity date of July 8, 2015.
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 ofthis revolving fund is to
provide low-interest, long-term loans and other financial assistance to the four counties in the
state to finance construction of wastewater projects. The County has ten projects approved for
funding with these loans.
The schedule below shows the County's SRF transactions for the fiscal year ended June 30,
2014:
Loans Approved Loan Balance Loan Balance Due Within
Authorized Amount July I 2013 Additions Retirements June 30 2014 One Year
WaiakeaMill $ 1,300,000 $ 82,003 $ ($ 82,003) $ $
Kealakehe 1,300,071 81,854 (81,854)
Cesspool
Conversion 8,363,773 5,964,174 (428,156) 5,536,018 430,299
Honoka'a LCC 4,153,158 3,243,528 66,246 (87,987) 3,221,787 176,618
Queen
Lili'uokalani 9,421,732 8,189,382 (238,239) 7,951,143 478,608
Kalaniana'ole 8 621 409 3 321 342 3 006 331 (] 07 983) 6 219 690 290 900
$33 160 143 $20 882 283 $ 3 012 511 ($1 026 222) $22 228 638 $ 1316 425
The remaining loans bear interest at 0.50% exclusive of a 0.25% loan fee, and require
payments through fiscal year 2033.
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COUNTY OF HAW AI' I
Notes to the Basic Financial Statements
June 30,2014
Debt service to maturity for disbursements to date on these projects are as follows:
Governmental Activities
Fiscal year ending June 30: Principal Interest
2015 $ 1,376,425 $ 166,499
2016 1,406,466 159,046
2017 1,413,590 148,402
2018 1,420,628 137,824
2019 1,427,740 127,156
2020-2024 7,246,617 473,900
2025-2029 6,280,220 207,652
2030-2033 2,356,952 31 353
Total $22 928 638 $1.451 832
Other General Long-Term Obligations
The following is a summary ofother general long-term obligations transactions for the fiscal
year ended June 30,2014:
Balance Balance Due Within
Jul~ 1,2013 Additions* Pa):ments June 30, 2014 One Year
Governmental activities:
Compensated absences $32,165,110 $13,033,788 ($11,213,454) $33,985,444 $8,342,581
Claims and judgments
(see Note 12) 12,404,462 4,877,501 (3,558,070) 13,723,893 2,915,021
Capital leases
(see Note 8) 3,632,420 13,817 (1,337,996) 2,308,241 1,066,531
Landfill costs payable
(see Note 9) 21,985,000 970,302 (242,302) 22,713,000 224,478
Pollution remediation
(see Note 9) 8,770,000 8,770,000
Other post employment
benefit obligation
(see Note 13) 38,160,502 30 841 000 (17 ,452,906) 51,548,596
Total $1Q8 347 494 $58 506 4Q8 ($33 8Q4 728) $133 Q42 114 $12 548 611
*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.
-73
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
Fund Balances -Debt Service Funds
The fund balance in the debt service funds at June 30, 2014 includes $21,120,840, which is
reserved for principal payments on general obligation bonds and $2,455,408, 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 ofKula'imano
Elderly Housing Project (Project) to pay off its two notes payable to the U.S. Department of
Agriculture, Fanners 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 ofthe 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.
The following is a summary of the Project's bond payable transactions for the fiscal year
ended June 30, 2014:
Balance at July 1, 2013 $835,108
Deductions (24,071)
Balance at June 30, 2014 811,037
Less current portion (50,187)
Note payable, net of
current portion $ 760 850
The following is a summary ofthe annual maturities for the enterprise fund bond payable:
Fiscal year ending June 30:
2015
2016
2017
2018
2019
2020-2024
2025-2026
Total
Business-type Activities
Principal Interest
$ 50,187 $ 42,317
53,043 39,381
56,061 36,278
59,251 32,999
62,622 29,533
370,795 88,362
159,078 4 465
$811 037 $273 335
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
On October 29, 2012, the County assumed the loan of its lessee Ouli Ekahi Partnership with
the Hawai'i Housing Finance and Development Corporation in the amount of $478,430. The
loan is non-interest bearing and matures on February 27, 2041. In exchange, the County
assumed ownership ofthe Ouli Ekahi project which consists of a 33 single family affordable
rental housing project.
The following is a summary of enterprise fund loan payable transactions for tbe fiscal year
ended June 30,2014:
Balance at July I, 2013 $461,525
Deductions (64.262)
Balance at June 30,2014 397,263
Less current portion (34.225)
Loan payable, net of
current portion $ 363 038
The following is a summary ofthe annual maturities for the enterprise fund loan payable:
Business-type Activities
Fiscal year ending June 30: Principal
2015 $ 34,225
2016 16,500
2017 16,500
2018 16,500
2019 16,500
2020-2024 82,500
2025-2029 82,500
2030-2034 82,500
2035-2037 49 538
Total $397 263
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 ofthe 2013
Series A Bonds that were issued. The Improvement District is responsible for tbe payment of
the debt service on these bonds, but the County remains liable because they are general
obligations ofthe County. The improvement district's share ofthe refunded bonds matures
annually through 2027 and bear interest at the previous rates of 4.3 75% to 4.75%. Total
general obligation bonds payable included in the government-wide statement of net position
were $1,281,930 at June 30,2014.
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
The County has also issued general obligation bonds on behalf oflmprovement District No. 19
for water improvements (see Note 4). The Improvement District is responsible for the payment
of the debt service on these bonds, but the County remains liable because they are general
obligations of the County. The improvement district's share ofthe refunded bonds matures
annually through 2048 and bear interest at the previous rates of 2.75%. Total general
obligation bonds payable included in the government-wide statement of net position were
$448,669 at June 30,2014.
The bonds are secured by a first lien on the land benefited by the improvements, and are to be
repaid from the annual assessments levied against the owners of the land. The County acts as
an agent for the property owners within the improvement districts to collect assessments
receivable, forward payments to bond-paying agents at appropriate dates and, if required,
administer foreclosure proceedings.
The following is a summary of bond transactions for Improvement District No. 18,
Coastview/Wonderview Water Improvements, and No. 19, Kona Ocean View Properties
Subdivision for the fiscal year ended June 30, 2014:
Balance at July I, 2013 $1,345,945
Additions 448,669
Deductions (64,015)
Balance at June 30,2014 $1730599
The following is a summary of the annual maturities for the improvement district general
obligation bonds:
Fiscal year ending June 30: Princinal Interest
2015 $ 66,993 $ 70,457
2016 78,258 67,155
2017 81,744 63,589
2018 85,389 59,862
2019 89,199 55,964
2020-2024 509,495 214,880
2025-2029 507,713 90,100
2030-2034 62,917 38,641
2035-2039 72,059 29,376
2040-2044 82,527 18,764
2045-2049 94 305 6 613
Total $1,13Q 522 $1!5 4Ql
-76
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
11. COMMITMENTS AND CONTINGENCIES
Contractual commitments-Contractual commitments for capital projects, expenses, and
supplies at June 30,2014, 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 $ 5,954,985
Capital projects fund 73,778,294
Nonmajor funds 8 427 844
$88 161.123
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 oftbe 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 ofthe County's Corporation Counsel,
the resolution of such matters will not have a material adverse affect on tbe financial condition
ofthe. 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 tbem 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 ofthe 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 April2005
Stipulation ofthe Parties and Order ofthe 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 tbe 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 oftbe 161
curb ramps that were required by the amended transition plan) installed in Hilo, Waikoloa and
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 ofHawai'i'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 ofParks 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 ofthis 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 ofthe facilities repairs was $15.1 million, which would
have been spent over the 12-year period. Funding allocated initially for facilities repairs was
$17.5 million, with another $4 million of federal funding anticipated through community
development block grants over the next 2 years. Since 2000, Parks has requested $2 to $3
million a year for the different park facilities' ADA projects. The Department ofPublic
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 ofthe implementation ofthe Original Transition Plan, the learning curve process, and
the timing and scheduling ofthe different stages ofwork for each project, the parties worked
on a plan to implement the Transition Plan with the assistance ofa 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 ofthe 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 time line to complete the remaining
ADA work by December 31, 20 16; some ofthe projects within the four year plan have been
completed. 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. Also, Parks has a Recreation Specialist who reviews and investigates
requests for reasonable accommodations, and recommends specific actions on those requests.
-78
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 (Kula' imano, 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
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 30,2014, the amount
ofthis liability was $13,723,893. This is the County's best estimate based on available
information. Changes in the reported liability since July I, 2012 are given below.
General Workers' Total
Liabilitv Compensation Liabilitv
Balance at July I, 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) (2.3 I 6.560) (2.492.689)
Balance at June 30,2013 $ 2,413,819 $ 9,990,643 $ 12,404,462
Incurred claims (including IBNR)* 1,227,372 3,650,129 4,877,501
Claim payments (1,007.472) (2.550.598) (3.558.070)
Balance at June 30, 2014 $ 2 633 719 $11090174 $ 13 723 893
*Net of new claims liability and existing claims resolved at less than previous estimate.
-79
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 ofHawai'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 ofjoining the
noncontributory plan or remaining in the contributory plan. All new employees hired after
June 30, 1984 and before July I, 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 ofjoining the hybrid plan effective July 1, 2006,
or remaining in their existing plan. Starting July 1, 2006, all new employees covered by
Social Security are required to join the hybrid plan.
The three plans provide a monthly retirement allowance equal to the benefit multiplier
percentage (1.25% or 2.00%) multiplied by the average final compensation (AFC) multiplied
by years of credited service. The AFC is the average salary earned during the five highest
paid years of service, including the payment of salary in lieu of vacation, or three highest paid
years of service, excluding the payment of salary in lieu of vacation, ifthe 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 I following the calendar year of retirement. This cumulative benefit is not
compounded and increases each year by 2.5% ofthe original retirement allowance without a
ceiling (2.5% of the original retirement allowance the first year, 5.0% 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% oftheir 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
-80
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
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 of2.5% for qualified service, up to a maximum of 80% of AFC. These
members may retire at age 55 with l 0 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 ofthe
qualified occupations.
Hybrid Plan General employees in the hybrid plan are required to contribute 6.0% of
their salary and are fully vested for benefits upon receiving 5 years of credited service.
The County may also make contributions for these members. Employees may retire with
full benefits at age 62 and 5 years of credited service or at age 55 and 30 years of credited
service, or may retire at age 55 and 20 years of credited service with reduced benefits.
The benefit multiplier used to calculate retirement benefits is 2.0%.
Noncontributory Plan General employees in the noncontributory plan are fully vested
upon receiving 10 years of credited service. The County is required to make all
contributions for these members. Employees may retire with full benefits at age 62 and
10 years of credited service or age 55 and 30 years of credited service or age 55 and 20
years of credited service with reduced benefits. The benefit multiplier used to calculate
retirement benefits is 1.25%.
The ERS funding policy provides for periodic employer contributions at actuarially
determined rates, expressed as a percentage of annual covered payroll, such that the employer
contributions, along with employee contributions and an actuarially determined rate of
investment return, are adequate to accumulate sufficient assets to pay benefits when due. The
funding method used to calculate the total employer contribution required is the entry age
normal actuarial cost method. Effective July 1, 2005, employer contribution rates are a fixed
percentage of compensation, including the normal cost plus amounts required to pay for the
unfunded actuarial accrued liability. Employers contributed 23.00% for police officers and
fire fighters, and 16.00% for all other employees. Employer rates are set by statute based on
the recommendation of the ERS actuary resulting from an experience study conducted every
five years.
The required pension contributions by the County for the years ended June 30, 2014, 2013,
and 2012 were $26,525,388, $23,559,710, and $21,832,179, 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.
-81
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
The ERS issues a CAFR that includes financial statements and required supplementary
information, which may be obtained by writing to the Employees' Retirement System ofthe
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 I, 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 I, 1996, the County pays the entire monthly healthcare
premium for employees retiring with I 0 or more years of credited service, and 50% ofthe
monthly premium for employees retiring with fewer than I0 years of credited service. The
current (pay-as-you-go) premium costs are paid by the respective funds but the net other
postemployment benefit obligation is paid by the General Fund.
For employees hired after June 30, 1996, and who retire with fewer than 10 years of service,
the County makes no contributions. For those retiring with at least I 0 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 3 0, 200 I, and who retire with fewer than I0 years of service,
the County makes no contributions. For those retiring with at least I 0 years but fewer than 15
years of service, the County pays 50% ofthe 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% ofthe
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 Post employment
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30,2014
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 22.8% of annual covered payroll.
The following section shows the County's Annual OPEB cost for the year ended June 30,
2014, the amount actually contributed to the plan, and changes in the net OPEB liability:
Annual required contribution $30,526,000
Interest on net OPEB obligation 2,671,000
Adjustment to annual required contribution (2,356,000)
Annual OPEB Cost 30,841,000
Contributions made 17,452,906
Increase in net OPEB liability 13,388,094
Net OPEB liability-beginning of year 38,160,502
Net OPEB liability-end of year $51,548,596
The above net OPEB liability at the end ofthe year is included in the Statement ofNet
Position in the noncurrent other liability amount of$51,548,596.
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, 2014 and the preceding two years were
as follows:
Percentage of Annual NetOPEB
Fiscal Year OPEB Cost Obligation/
Ended Annual OPEB Cost Contributed (Asset)
June 30, 2012 $36,191,000 37.9% $22,340,332
June 30, 2013 $29,712,000 46.8% $3 8, 160,502
June 30,2014 $30,841,000 56.6% $51,548,596
The schedule of funding progress based on the actuarial valuation date ofJuly I, 2013, is as
follows:
Actuarial accrued liability $410,182,000
Actuarial value of plan assets 66,077,000
Unfunded actuarial accrued liability (UAAL) $344,105,000
Funded ratio 16%
Covered payroll (active plan members) $137,810,000
UAAL as a percentage of covered payroll 250%
-83
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
Actuarial valuations of an ongoing plan involve estimates ofthe 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 ofthe 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.
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 valne 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 I, 2013 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 of7.5-9.0%
initially, reduced by decrements to an ultimate rate of 5.0% after ten 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 a closed basis. The remaining
amortization period at July I, 2013 for the UAAL balance varies depending on the date each
portion was established but is set to not exceed 30 years. The equivalent single amortization
period is 23.5.
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 ofthe State of
Hawai'i, adopted pursuant to Internal Revenue Code (IRC) section 457. The plan permits
eligible employees to defer a portion oftheir salary until future years by contributing to a fund
managed by a plan administrator. The deferred compensation amounts are not available to
employees until 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
-84
COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
County has no responsibility for loss due to the investment or failure of investment of funds
and assets in the plans, but does have the duty of due care that would be required of an
ordinary prudent investor. Therefore, the deferred compensation plan assets are not reported
in the accompanying basic financial statements.
14. COMPONENT UNIT DISCLOSURES
Deposits and Investments
At June 30, 2014, the carrying amount of cash, time certificates of deposit and money market
funds of $38,331,573, with bank balances of$39,397,607 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 $2,085,134 at June 30,2014.
At June 30, 2014, the Department had no investments.
Capital Assets
The Department began operations as of January I, 1950. At that date, the utility plant in
service was transferred to the Department from the County at the cost ofthe utility plant assets
acquired by the County for its water system from January I, 1924 to December 31, 1949, less
accumulated depreciation. Acquisitions prior to I 924 and acquisitions by gift or grant prior to
1950 are not included in utility plant. Additions to utility plant since January I, 1950 are
stated at original cost and include contributions by governmental agencies, private subdividers
and customers at their cost or estimated cost. Construction costs include amounts for contract
work, engineering supervision and other direct and indirect costs. 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 ofthe assets as follows:
Structures and improvements 40 to 50 years
Machinery and equipment 5 to 25 years
Water systems 10 to 40 years
-85
COUNTYOFHAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
The capital assets ofthe Department at June 30,2014 were as follows:
Utility plant in service
Less: accumulated depreciation
Land and rights
Construction work in progress
Net capital assets
Long-Term Debt
$454,575,245
(199.257.568)
255,317,677
4,564,602
7,358,252
$267.240 531
The County has issued general obligation bonds on behalf ofthe Department. The
Department is responsible for the payment ofthe debt service on these bonds, but the County
remains liable because they are general obligations ofthe County. The Department has
recorded a liability for these general obligation bonds, which amounted to $39,198,501 at June
30,2014.
General obligation bonds payable issued on behalf of the Department and other long-term debt
at June 3 0, 2014 are comprised of the following:
Public improvement bonds:
2004 Series D at 4.5%, due through 2039
2006 Series A at 4.0% to 5.0%, due through 2026
2008 Series A at 4.125%, due through 2043
2010 Series A at 3.33% to 6.1 %, due through 2030
2010 Series Bat 3.33% to 6.1 %, due through 2030
Total public improvement bonds
Public improvement refunding bonds:
2004 Series at 2.0% to 5.25%, due through 2015
2007 Series at 4.0% to 5.0%, due through 2021
Total public improvement refunding bonds
Revolving fund loans:
State revolving fund loans, interest up to 1.37%,
due through 2032
Total long-term debt
Add: Unamortized premium
Total
$ 227,608
18,802,500
137,767
8,831,250
6,168.750
34,167,875
48,888
4 427 494
4,476,382
13.658.717
52,302,974
554 244
$52 857 218
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COUNTY OF HAWAI'I
Notes to the Basic Financial Statements
June 30, 2014
At June 30,2014, future principal and interest payments for long-term debt are scheduled as
follows:
Fiscal year ending June 30: PrinciQal Interest Total
2015 $ 3,374,743 $ 1,827,190 $ 5,201,933
2016 3,435,920 1,715,140 5,151,060
2017 3,545,057 1,601,665 5,146,722
2018 3,665,812 I ,482,950 5,148,762
2019 3,790,703 1,368,495 5,159,198
2020-2024 18,383,044 4,820,841 23,203,885
2025-2029 13,775,671 1,722,900 15,498,571
2030-2034 2,193,868 120,481 2,314,349
2035-2039 94,283 20,625 114,908
2040-2043 43 873 3 439 47 312
Total $52 302 974 $14683 726 $66 986.700
Contributions in Aid of Construction
The Department recognized $10,299,452 of contributions in aid of construction for the fiscal
year ended June 30, 2014.
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, 2014 for workers' compensation claims of $307,000
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 $9,452,000 at
June 30, 2014.
Post-Retirement Benefits
Effective July I, 2007, the Department adopted the provisions ofGASB 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, 2014 was $1,899,000. The Department made
contributions of $1,900,758 during the year ended June 30, 2014 and recorded a
postemployment benefit asset of $4,758 atJune 30, 2014.
-87
COUNTY OF HAWAll
Required Supplementary Information
June 30, 2014
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)
UAALasa
Percentage
of Covered
Payroll
((b-a)/c)
July I, 2009
July I, 2011
July I, 2013
$28,814
$61,907
$66,077
$439,225
$394,633
$410,182
$410,411
$332,726
$344,105
6.6%
15.7%
16.1%
$133,555
$130,170
$137,810
307.3%
255.6%
249.7%
-88
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 ofburiallots in County cemeteries.
PARKING METER FUND -Used to account for the costs of maintaining County on-street and off-street
parking areas. Financing is provided by the proceeds from parking meters.
VEHICLE DISPOSAL FUND-Used to accumulate moneys for the towing, removal, disposal and recycling
of abandoned or discarded automobiles and automobile parts. Financing is provided by annual fees
collected with motor vehicle registrations.
BIKEWAY FUND-Used to accumulate moneys for the construction of bikeways within the County.
Financing is provided by bicycle license fees.
WORKFORCE INVESTMENT ACTFUND-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 ofgeneral 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 HAWAil
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2014
Highway Sewer
Fund Fund
Assets
Cash and cash equivalents $12,541,430 $ 5,089,238
Investments
Imprest fund 400
Receivables:
Due from other governments
Due from other governmental funds 2,094 38,416
Due from other nongovernmental funds 1,350
Trade, net ofallowance for doubtful accounts 1,306,659
Other
2,094 1,346,425
Total assets $12,543,524 $ 6,436,063
Liabilities, Deferred Inflows and Fund Balances
Liabilities:
Accounts payable $ 785,597 $ 257,475
Accrued payroll 434,884 145,383
Due to other governmental funds 545,896 7,072
Advance Collections-Intergovernmental 94,329
Other 10,300 70,470
Total liabilities 1,871,006 480,400
Deferred Inflows of Resources
Unavailable Revenue 1,306,659
Fund balances:
Restricted for:
Debt service
Highways, streets and abandoned vehicles 10,672,518
Rental assistance and subsidy
Committed to:
Sanitation 4,649,004
Highways, streets and abandoned vehicles
Rental assistance and subsidy
Cemetery
Golf course
Lower Puna area
Parks and recreational projects
Total fund balances 10,672,518 4,649,004
Total liabilities, deferred inflows
and fund balances $12,543,524 $ 6,436,063
-90
Special Revenue Funds
Solid
Waste Cemetery
Fund Fund
Parking
Meter
Fund
$ 9,168,994
250
$103,909 $220,262
440,160
1,376,369
148,504
1,965,033
$11,134,277 $103,909 $220,262
$ 1,853,901
306,218
40,075
I 1,998
3
2,212,195
$ $
1,376,369
7,545,713
220,262
103,909
7,545,713 103,909 220,262
$11,134,277 $103,909 $220,262
Special Revenue Funds
Vehicle Workforce Golf Geothennal Reloc Beauti-Hawaii County Park
Disposal Bikeway Investment Course & Community fication Housing Dedication
Fund Fund Act Fund Fund Benefits Fund Fund Agency Fund
$4,345,789 $792,230 $ $ 411,599 $4,864,362 $ 1,230,179 $ 3,853,289 $ 16,743
69,774
2,000 200
146,755
29,020
38,993 370 74,273 49,275
185,748 370 74,273 78,295
$4,345,789 $ 792,230 $ 185,748 $ 413,969 $ 4,938,635 $ 1,230,179 $3,931,784 $ 86,517
$ 4,059 $ 13,903 $ $ 5,880 $ $ 12,977 $ 116,666 $
4,518 40,291 137,635
185,748 3,536
188,824
8,577 13,903 185,748 49,707 12,977 443,125
41,942
778,327 1,217,202
1,164,278
4,337,212
2,282,439
364,262
4,938,635
86,517
4,337,212 778,327 364,262 4,938,635 1,217,202 3,446,717 86,517
$4,345,789 $ 792,230 $ 185,748 $ 413,969 $ 4,938,635 $ 1,230,179 $3,931,784 $ 86,517
(Continued)
-91
COUNTY OF HAW All
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2014
Debt Service Fund
Assets
Cash and cash equivalents
Investments
Imprest fund
Receivables:
Due from other govermnents
Due from other governmental funds
Due from other nongovernmental funds
Trade, net of allowance for doubtful accounts
Other
Total assets
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued payroll
Due to other governmental funds
Advance Collections-Intergovernmental
Other
Total liabilities
Deferred Inflows of Resources
Unavailable Revenue
Fund balances:
Restricted for:
Debt service
Highways, streets and abandoned vehicles
Rental assistance and subsidy
Committed to:
Sanitation
Highways, streets and abandoned vehicles
Rental assistance and subsidy
Cemetery
Golf course
Lower Puna area
Parks and recreational projects
Total fund balances
Total liabilities, deferred inflows
and fund balances
See accompanying independent auditors 1 report.
(Concluded)
Total
Nonmajor
Governmental
Funds
$ 46,848,582
19,727,394
2,850
586,915
69,530
1,350
2,683,028
311,415
3,652,238
$ 70,231,064
$ 3,050,458
1,068,929
782,327
106,327
561,527
5,569,568
2,724,970
23,576,248
12,668,047
1,164,278
12,194,717
4,557,474
2,282,439
103,909
364,262
4,938,635
86,517
61,936,526
$ 70,231,064
Interest
Fund
$ 365,000
2,162,338
$2,527,338
$
71,930
71,930
2,455,408
Bond
Redemption
Fund
$ 3,845,558
17,495,282
$21,340,840
$
220,000
220,000
21,120,840
2,455,408 21,120,840
$2,527,338 $21,340,840
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COUNTY OF HAWAil
Nonmajor Governmental Funds
Combining Statement ofRevenues, Expenditures, and Changes in Fund Balances
Revenues
Fuel taxes
Public utility franchise taxes
Licenses and permits
Intergovernmental
Charges for services
Investment earnings (loss)
Other
Total revenues
Expenditures
Current:
General Government
Public safety
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) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other fmancing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
For the Fiscal Year Ended June 30, 2014
Highway
Fund
Sewer
Fund
Special Revenue Funds
Solid
Waste Cemetery
Fund Fund
Parking
Meter
Fund
$ 7,373,475
10,792,967
9,274,608
686,835
$
7,231,125
$
705,104
7,587,487
$ $
16,475
606,043
28,733,928
185
7,231,310
66,169
8,358,760
6,000
6,000 16,475
15,000
6,229,784
17,592,901
1,789,768
852,712
860,032
6,936,190
603,576
204,096
99,210
21,725,963
1,163,767
573,294
561,484
27,340,197 7,843,072
777,959
31,471
24,833,938
1,393,731 (611,762) (16,475,178) 6,000 16,475
63,714
(3,704,704)
(3,640,990)
(2,247,259)
12,919,777
$ 10,672,518
1,739,548
1,739,548
1,127,786
3,521,218
$ 4,649,004
15,520,377
15,520,377
(954,801)
8,500,514
$ 7,545,713
6,000
97,909
$ 103,909
16,475
203,787
$220,262
-94
Special Revenue Funds
Vehicle Workforce Golf Geothermal Reloc. Beauti-Hawaii County Park
Disposal Bikeway Investment Course &Community fication Housing Dedication
Fund Fund Act Fund Fund Benefits Fund Fund Agency Fund
$ $ $ $ $ $ $ $
2,144,344 87,247 178,695
1,242,465 14,539,979
839 827,791
3,681 1,708
525 766,514 118,088
2,145,708 87,247 1,242,465 827,791 766,514 178,695 14,661,748 1,708
4,550
151,633
1,242,465 14,797,645
881,431 37,444
259,767
23,447 162,863 505,263
18,272 80,325 191,382
4,092
8,819
1,072
301,486 1,242,465 1,128,711 4,550 189,077 15,504,181
1,844,222 87,247 (300,920) 761,964 (10,382) (842,433) 1,708
361,000 1,402,916
(2,000,000)
361,000 (597,084)
1,844,222 87,247 60,080 761,964 (10,382) (1,439,517) 1,708
2,492,990 691,080 304,182 4,176,671 1,227,584 4,886,234 84,809
$4,337,212 $ 778,327 $ $ 364,262 $ 4,938,635 $1,217,202 $ 3,446,717 $ 86,517
(Continued)
-95
COUNTY OF HAWAll
Nonmajor Governmental Funds
Combining Statement ofRevenues, Expenditures, and Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014
Revenues
Fuel taxes
Public utility franchise taxes
Licenses and permits
Intergovermnental
Charges for services
Investment earnings (loss)
Other
Total revenues
Expenditures
Current:
General Govermnent
Public safety
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) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other fmancing sources (uses)
Net change in fund balances
Fund balances at beginning of year
Fund balances at end of year
See accompanying independent auditors' report.
Debt Service Fund
Interest
Fund
$
407,523
407,523
14,570,290
14,570,290
(14, 162, 767)
14,224,300
14,224,300
61,533
2,393,875
$ 2,455,408
Bond
Redemption
Fund
$
17,674,593
17,674,593
(17,674,593)
22,062,686
22,062,686
4,388,093
16,732,747
$21,120,840
(Concluded)
Total
Nomnajor
Governmental
Funds
$ 7,373,475
10,792,967
11,684,894
17,581,906
15,663,717
5,389
1,563,524
64,665,872
19,550
6,229,784
17,744,534
16,040,110
918,875
28,921,920
4,248,684
1,920,081
1,524,818
18,461,371
14,602,833
II0,632,560
(45,966,688)
55,374,541
(5,704,704)
49,669,837
3,703,149
58,233,377
$61,936,526
-96
COUNTY OF HAWAll
Highway Fund
Schedule ofRevenues, Expenditures, and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Revenues:
Taxes:
Fuel taxes
Public utility franchise taxes
Total taxes
Licenses and permits -motor vehicle weight taxes
Intergovernmental
Charges for services
Other
Total revenues
Expenditures:
General government
Pub lie safety -traffic engineering
Highways and streets
Highways and streets -mass transit
Pension and retirement contributions
Employees' health insurance
Other
Total expenditures
Excess (deficiency) of revenues over (under)
expenditures
Other financing uses -transfers in (out)
Transfers in -General Fund
Transfers out-Capital Projects Fund
Deficiency of revenues under
expenditures and other uses
Fund balance at beginning of year
Fund balance at end of year
See accompanying independent auditors1 report.
Original
Budget
$ 7,250,000
11,567,200
18,817,200
9,213,364
631,564
500,000
71,732
29,233,860
50,000
7,098,161
12,982,467
6,726,250
1,828,000
1,209,000
1,200,000
31,093,878
(I ,860,0 18)
(3,430,000)
(5,290,018)
12,919,777
$ 7,629,759
Final
Budget
$7,250,000
11,567,200
18,817,200
9,213,364
816,564
500,000
I 06,733
29,453,861
56,107
7,349,822
13,008,414
6,726,250
1,878,000
1,209,000
1,150,000
31,377,593
(1,923,732)
63,714
(3,704,704)
(5,564,722)
12,919,777
$7,355,055
Actual Variance
(Budgetary Positive
Basis) (Negative)
$ 7,373,475 $ 123,475
10,792,967 (774,233)
18,166,442 (650,758)
9,274,608 61,244
766,164 (50,400)
420,706 (79,294)
185,337 78,604
28,813,257 (640,604)
56,107
6,195,597 1,154,225
11,054,043 1,954,371
6,680,239 46,011
1,785,082 92,918
854,958 354,042
894,098 255,902
27,520,124 3,857,469
1,293,133 3,216,865
63,714
(3,704,704)
(2,347,857) 3,216,865
12,919,777
$ 10,571,920 $ 3,216,865
-97
COUNTY OF HAWAll
Sewer Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Original Final
Budget Budget
Revenues:
Charges for services -sewer fees $6,834,151 $ 6,834,151
Other
Total revenues 6,834,151 6,834,151
Expenditures:
Sanitation 7,441,659 7,441,659
Pension and retirement contributions 688,361 688,361
Employees' health insurance 374,671 374,671
Other 1,252,513 1,252,513
Total expenditures 9,757,204 9,757,204
Deficiency of revenues under expenditures (2,923,053) (2,923,053)
Other financing sources:
Transfers in -General Fund 1,739,548 1,739,548
Deficiency of revenues and other
sources under expenditures (1,183,505) (!,183,505)
Fund balance at beginning of year 3,521,218 3,521,218
Fund balance at end of year $ 2,337,713 $ 2,337,713
See accompanying independent auditors' report.
Actual Variance
(Budgetary Positive
Basis) (Negative)
$7,231,125 $ 396,974
185 185
7,231,310 397,159
6,916,435 525,224
603,333 85,028
205,752 168,919
57,011 1,195,502
7,782,531 1,974,673
(551,221) 2,371,832
1,739,548
1,188,327 2,371,832
3,521,218
$ 4,709,545 $ 2,371,832
-98
COUNTY OF HAWAll
Solid Waste Fund
Schedule ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Intergovernmental $ 233,333 $ 717,266 $ 714,229 $ (3,037)
Charges for services -tipping fees 6,329,950 6,329,950 7,587,487 1,257,537
Other 66,169 66,169
Total revenues 6,563,283 7,047,216 8,367,885 1,320,669
Expenditures:
Sanitation 22,666,003 23,154,936 21,561,718 1,593,218
Pension and retirement contributions 1,236,733 1,236,733 1,161,933 74,800
Employees' health insurance 744,775 738,175 574,650 163,525
Other 720,000 726,600 481,584 245,016
Total expenditures 25,367,511 25,856,444 23,779,885 2,076,559
Deficiency of revenues under expenditures (18,804,228) (18,809,228) (15,412,000) 3,397,228
Other fmancing sources:
Transfers in -General Fund 15,515,377 15,520,377 15,520,377
Deficiency of revenues and other
sources under expenditures (3,288,851) (3,288,851) 108,377 3,397,228
Fund balance at beginning ofyear 8,500,514 8,500,514 8,500,514
Fund balance at end ofyear $ 5,211,663 $ 5,211,663 $ 8,608,891 $ 3,397,228
See accompanying independent auditors' report
-99
COUNTY OF HAWAll
Cemetery Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues -other -sale of cemetery plots $ 10,000 $ 10,000 $ 6,000 $ (4,000)
Expenditures -health, education and welfare 10,000 10,000 10,000
Excess of revenues over expenditures 6,000 6,000
Fund balance at beginning of year 97,909 97,909 97,909
Fund balance at end of year $ 97,909 $ 97,909 $ 103,909 $ 6,000
See accompanying independent auditors' report.
-100
COUNTY OF HAWAll
Parking Meter Fnnd
Schedule ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Original
Budget
Final
Budget
Actual
(Budgetary
Basis)
Variance
Positive
(Negative)
Revenues -Charges for services -highways and streets
Excess ofrevenues over expenditures
Fund balance at beginning ofyear
Fund balance at end ofyear
$
203,787
$ 203,787
$
203,787
$ 203,787
$ 16,475
16,475
203,787
$ 220,262
$ 16,475
16,475
$ 16,475
See accompanying independent auditors' report.
-101
COUNTY OF HAWAII
Vehicle Disposal Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Licenses and permits -vehicle disposal fee $2,058,000 $ 2,058,000 $ 2,144,344 $ 86,344
Charges for services -towing charges 839 839
Miscellaneous 525 525
Total revenues 2,058,000 2,058,000 2,145,708 87,708
Expenditures:
Sanitation 2,412,149 2,412,149 143,271 2,268,878
Pension and retirement contributions 30,900 30,900 23,874 7,026
Employees' health insurance 25,986 25,986 18,516 7,470
Other 6,000 6,000 6,000
Total expenditures 2,475,035 2,475,035 185,661 2,289,374
Excess (deficiency) of revenues
over (under) expenditures (417,035) (417,035) 1,960,047 (2,20I ,666)
Fund balance at beginning of year 2,492,990 2,492,990 2,492,990
Fund balance at end of year $2,075,955 $ 2,075,955 $ 4,453,037 $ (2,20 1 ,666)
See accompanying independent auditors1 report.
-102
COUNTY OF HAW All
Bikeway Fund
Schedule ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Original Actual Variance
and Final (Budgetary Positive
Budget Basis) (Negative)
Revenues -licenses and pennits -bicycle tax $ 20,000 $ 87,247 $ 67,247
Expenditures -highways and streets 171,000 171,000
Excess (deficiency) of revenues over (under)
expenditures (151,000) 87,247 238,247
Fund balance at beginning ofyear 691,080 691,080
Fund balance at end ofyear $540,080 $778,327 $238,247
See accompanying independent auditors' report.
-103
COUNTY OF HAWAil
Workforce Investment Act Fond
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues -intergovernmental -federal grants $ $ 1,621,232 $ 1,077,860 $ (543,372)
Expenditures -health, education and welfare 1,621,232 1,077,860 543,372
Excess of revenues over expenditures
Fund balance at beginning ofyear
Fund balance at end of year $ $ $ $
See accompanying independent auditors' report.
-104
COUNTY OF HAWAU
Golf Course Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Charges for services $ 876,445 $ 876,445 $ 827,791 $ (48,654)
Expenditures:
Culture and recreation 891,733 937,733 897,113 40,620
Pension and retirement contributions 166,402 166,402 161,862 4,540
Employees' health insurance 99,709 99,709 80,415 19,294
Other 48,601 33,601 4,093 29,508
Total expenditures 1,206,445 1,237,445 1,143,483 93,962
Deficiency of revenues under expenditures (330,000) (361,000) (315,692) (142,616)
Other financing sources:
Transfers in -General Fund 330,000 361,000 361,000
Excess of revenues and other sources
over expenditures 45,308 (142,616)
Fund balance at beginning of year 304,182 304,182 304,182
Fund balance at end of year $ 304,182 $ 304,182 $ 349,490 $ (142,616)
See accompanying independent auditors1 report.
-105
COUNTY OF HAWAll
Geothermal Relocation and Community Benefits Fund
Schedule ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30,2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues -other -geothermal royalties $ 600,000 $ 600,000 $ 766,514 $ 166,514
Expenditures:
General government:
Planning and zoning 1,700,000 1,700,000 4,550 1,695,450
Excess (deficiency) of revenues
over (under) expenditures (1,100,000) (I,I 00,000) 761,964 (1,528,936)
Fund balance at beginning of year 4,176,671 4,176,671 4,176,671
Fund balance at end of year $ 3,076,671 $ 3,076,671 $ 4,938,635 $(1,528,936)
See accompanying independent auditors' report.
-106
COUNTY OF HAWAil
Beautification Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Variance
Positive
(Negative)
$ 7,695
2,803
35,458
38,261
45,956
$ 45,956
Revenues -licenses and permits -highway
beautification
Expenditures:
Highways and streets
Culture and recreation
Total expenditures
Deficiency of revenues under expenditures
Fund balance at beginning ofyear
Fund balance at end of year
See accompanying independent auditors1 report.
Original
Budget
$ 171,000
121,370
61,300
182,670
(11,670)
1,227,584
$1,215,914
Final
Budget
$ 171,000
121,370
61,300
182,670
(I 1,670)
1,227,584
$ 1,215,914
Actual
(Budgetary
Basis)
$ I 78,695
118,567
25,842
144,409
34,286
1,227,584
$ 1,261,870
-107
COUNTY OF HAWAll
Hawaii County Housing Agency
Schedule ofRevenues, Expenditures, and Changes in Fund Balance-
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues:
Intergovenunental
Federal -HUD -Voucher program $ 14,657,717 $ 14,657,717 $ 14,539,979 $ (117,738)
Investment earnings 3,000 3,000 3,681 681
Resale of property 27,000 27,000
Other 181,179.00 181,179 91,088 (90,091)
Total revenues 14,841,896 14,841,896 14,661,748 (I 80,148)
Expenditures:
Health, education and welfare 15,635,839 15,635,839 14,831,607 804,232
Pension and retirement contributions 561,256 561,256 501,445 59,811
Employees' health insurance 231,368 231,368 190,546 40,822
Other 120,000 120,000 120,000
Total expenditures 16,548,463 16,548,463 15,523,598 1,024,865
Deficiency of revenues under expenditures (1,706,567) (1,706,567) (861,850) 844,717
Other financing uses -transfers in (out)
Transfers in -General Fund 1,402,916 1,402,916 1,402,916
Transfers out -Capital Projects Fund (2,000,000) (2,000,000)
Deficiency of revenues and other sources
under expenditures and other uses (303,651) (2,303,651) (1,458,934) 844,717
Fund balance at beginning of year 4,886,234 4,886,234 4,886,234
Fund balance at end of year $ 4,582,583 $ 2,582,583 $ 3,427,300 $ 844,717
See accompanying independent auditors' report.
-108
COUNTY OF HAWAll
Park Dedication Fnnd
Schedule ofRevenues, Expenditures, and Changes in Fund Balance
Budget and Actual (Budgetary Basis)
For the Fiscal Year Ended June 30, 2014
Actual Variance
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
Revenues -investment earnings $ $ $ 367 $ 367
Excess of revenues over expenditures 367 367
Fund balance at beginning of year 84,809 84,809 84,809
Fund balance at end of year $ 84,809 $ 84,809 $ 85,176 $ 367
See accompanying independent auditors' report.
-109
COUNTY OF HAWAll
Agency Fnnds
Combining Statement of Agency Funds Net Position
June 30, 2014
Performance
State Improvement Improvement Improvement and
Weight District District District Refundable
Tax No. 18 No. 19 Revolving Deposits
Fund Fund Fund Fund Fund
Assets
Cash and cash equivalents $1,849,041 $ 254,036 $ 374,927 $ 16,306 $ 231,644
Investments 193,238
Due from other agency funds
Other receivables 3,653 200
Total assets $1,849,041 $ 257,689 $ 374,927 $ 209,544 $ 231,844
Liabilities
Due to other agency funds $ $ $ $ $ 1,475
Accrued liabilities 1,849,041 5,929 1,228
Advances payable 15,111 229,141
Assets held for the benefit of
improvement districts 236,649 374,927 209,544
Total liabilities $1,849,041 $ 257,689 $ 374,927 $ 209,544 $ 231,844
See accompanying independent auditors' report.
-110
Non-Profit Organ and Business
Payroll Flexible Lapsed License Tissue Improvement
Clearance Spending Warrants Plates Education District
Fund Account Fund Fund Fund I -Kailua Total
$ 424,347 $ 374,858 $ 242,745 $ 1,125 $ 948 $ 704 $ 3,770,68I
I93,238
2,444 2,444
25,446 58,069 17,211 104,579
$ 449,793 $ 374,858 $ 303,258 $ 1,125 $ 948 $ I 7,915 $ 4,070,942
$ 869 $ $ $ 100 $ $ $ 2,444
448,924 374,858 303,258 1,025 948 704 2,985,915
244,252
17,211 838,331
$ 449,793 $ 374,858 $ 303,258 $ 1,125 $ 948 $ 17,9I5 $ 4,070,942
-Ill
COUNTY OF HAWAil
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2014
Balance
July l,
2013 Additions Deductions
Balance
June 30,
2014
State Weight Tax Fund
Assets
Cash and cash equivalents $ 1,682,830 $ 23,738,703 $ 23,572,492 $1,849,041
Liabilities
Vouchers payable
Accrued liabilities
Accrued liabilities -due to State of Hawaii
$
1,682,830
$ 23,566,191
21,942,097
$ 23,566,191
21,775,886
$
1,849,041
Total liabilities $1,682,830 $ 45,508,288 $ 45,342,077 $1,849,041
Improvement District No. 18 Fund
Assets
Cash and cash equivalents
Other receivables
$ 183,262
8,269
$ 379,867
267,277
$ 309,093
271,893
$ 254,036
3,653
Total assets $ 191,531 $ 647,144 $ 580,986 $ 257,689
Liabilities
Vouchers Payable
Accrued liabilities
Advances payable
Assets held for the benefit
of improvement districts
$
10,687
11,911
168,933
$ 527
230,838
15,111.
353,063
$ 527
235,596
11,911
285,347
$
5,929
15,111
236,649
Total liabilities $ 191,531 $ 599,539 $ 533,381 $ 257,689
Improvement District No. 19 Fund
Assets
Cash and cash equivalents $ $ 378,377 $ 3,450 $ 374,927
Liabilities
Vouchers Payable
Assets held for the benefit
of improvement districts
$ $ 2,083
378,377
$ 2,083
3,450
$
374,927
Total liabilities $ $ 380,460 $ 5,533 $ 374,927
-112
COUNTY OF HAWAll
Agency Fnnds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2014
Balance Balance
July I, June 30,
2013 Additions Deductions 2014
Improvement District Revolving Fund
Assets
Cash and cash equivalents $ 37,894 $ 1,014 $ 22,602 $ 16,306
Investments 189,525 3,713 193,238
Total assets $ 227,419 $ 4,727 $ 22,602 $ 209,544
Liabilities
Vouchers payable $ $ 22,60 I $ 22,601 $
Assets held for the benefit
of improvement districts 227,419 159,724 177,599 209,544
Total liabilities $ 227,419 $ 182,325 $ 200,200 $ 209,544
Performance and Refundable
Deposits Fund
Assets
Cash and cash equivalents $ 229,483 $ 412,934 $ 410,773 $ 231,644
Due from other non-agency funds 200 200
Total assets $ 229,483 $ 413,134 $ 410,773 $ 231,844
Liabilities
Vouchers payable $ $ 404,277 $ 404,277 $
Due to other agency funds 1,670 1,475 1,670 1,475
Accrued liabilities 1,228 1,228
Advances payable 227,813 412,284 410,956 229,141
Total liabilities $ 229,483 $ 819,264 $ 816,903 $ 231,844
Payroll Clearance Fund
Assets
Cash and cash equivalents $ 341,667 $ 227,296,301 $ 227,213,621 $ 424,347
Due from other non-agency funds 213,771,742 213,771,742
Other receivables 33,425 346,990 354,969 25,446
Total assets $ 375,092 $441,415,033 $ 441,340,332 $ 449,793
Liabilities
Vouchers payable $ $ 112,784,960 $ 112,784,960 $
Due to other agency funds 872 869 872 869
Accrued liabilities 374,220 236,791,688 236,716,984 448,924
Total liabilities $ 375,092 $349,577,517 $ 349,502,816 $ 449,793
-113
COUNTY OF HAWAil
Agency Fnnds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2014
Balance
July 1,
2013 Additions Deductions
Balance
June 30,
2014
Flexible Spending Account
Assets
Cash and cash equivalents $ 381,933 $ 325,224 $ 332,299 $ 374,858
Liabilities
Accrued liabilities $ 381,933 $ 325,224 $ 332,299 $ 374,858
Lapsed Warrants Fund
Assets
Cash and cash equivalents
Due from other agency funds
Other receivables
Total assets
$ 234,640
2,542
10,065
$ 247,247
$ 12,608
2,444
58,070
$ 73,122
$ 4,503
2,542
10,066
$ 17, Ill
$ 242,745
2,444
58,069
$ 303,258
Liabilities
Vouchers payable
Accrued liabilities
Total liabilities
$
247,247
$ 247,247
$ 4,502
91,872
$ 96,374
$ 4,502
35,861
$ 40,363
$
303,258
$ 303,258
Non-Profit License Plates Fund
Assets
Cash and cash equivalents $ 1,250 $ 5,042 $ 5,167 $ 1,125
Liabilities
Vouchers payable
Due to otber agency fuuds
Accrued liabilities:
Due to non-profit agency
Total liabilities
$
1,250
$ 1,250
$ 5,130
100
4,737
$ 9,967
$ 5,130
4,962
$ 10,092
$
100
1,025
$ 1,125
Organ and Tissue Education Fund
Assets
Cash and cash equivalents $ 954 $ 3,749 $ 3,755 $ 948
Liabilities
Vouchers payable
Accrued liabilities -due to State of Hawaii
Total liabilities
$
954
$ 954
-114
$ 3,754
3,576
$ 7,330
$ 3,754
3,582
$ 7,336
$
948
$ 948
COUNTY OF HAWAll
Agency Funds
Combining Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30,2014
Balance
June 30,
2014
$ 704
17,211
$ 17,915
$
704
17,211
$ 17,915
$3,770,681
193,238
2,444
200
17,211
87,168
$4,070,942
$
2,444
1,134,197
1,025
1,849,989
704
244,252
838,331
$4,070,942
Business Improvement District l-Kailua
Assets
Cash and cash equivalents
Other receivables-BID 1-Kailua Assessment
Other receivables
Total assets
Liabilities
Vouchers payable
Accrued liabilities -due to KVBID
Accrued liabilities
Assets held for the benefit
of improvement districts
Total liabilities
Total-All Agency Funds
Assets
Cash and cash equivalents
Investments
Due from other agency funds
Due from other non-agency funds
Other receivables -BID !-Kailua Assessment
Other receivables
Total assets
Liabilities
Vouchers payable
Due to other agency funds
Accrued liabilities
Accrued liabilities -due to non-profit agency
Accrued liabilities -due to State of Hawaii
Accrued liabilities -due to KVBID
Advances payable
Assets held for the benefit
of improvement districts
Total liabilities
See accompanying independent auditors1 report.
Balance
July I,
2013
$ 184
20,741
$ 20,925
$
121
62
20,742
$ 20,925
$3,094,097
189,525
2,542
20,741
51,759
$3,358,664
$
2,542
1,014,149
1,250
1,683,784
121
239,724
417,094
$3,358,664
Additions
$ 762,130
758,600
919
$ 1,521,649
$ 756,158
704
5,389
746,708
$ 1,508,959
$253,315,949
3,713
2,444
213,771,942
758,600
673,256
$ 468,525,904
$ 137,550,183
2,444
237,446,239
4,737
21,945,673
704
427,395
1,637,872
$ 399,015,247
Deductions
$ 761,610
762,130
919
$ 1,524,659
$ 756,158
121
5,451
750,239
$ 1,511,969
$ 252,639,365
2,542
213,771,742
762,130
637,847
$467,813,626
$ 137,550,183
2,542
237,326,191
4,962
21,779,468
121
422,867
1,216,635
$ 398,302,969
-115
COUNTY OF HAWAU
Private Purpose Trusts
Combining Statement of Private Purpose Trust Net Position
June 30, 2014
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Assets Fund Fund Trusts
Cash and cash equivalents $ 441,296 $ 1,134,273 $ 1,575,569
Investments 1,775,463 1,272,732 3,048,195
Other Receivable 463 463
Total assets $ 2,216,759 $ 2,407,468 $ 4,624,227
Net Position
Held in trust for other parties $ 2,216,759 $ 2,407,468 $ 4,624,227
Total net position $ 2,216,759 $ 2,407,468 $ 4,624,227
See accompanying independent auditors' report.
-116
COUNTY OF HAWAll
Private Purpose Trusts
Combining Statement of Changes in Private Purpose Trust Net Position
For the Fiscal Year Ended June 30,2014
Shippers' Total
Geothermal Wharf Private
Asset Trust Purpose
Fund Fund Trusts
Additions
Contributions:
Puna Geothermal Venture $ 50,000 $ $ 50,000
Investroent earnings:
Net increase (decrease) in fair value of
investments 34,120 (16,686) 17,434
Dividends 56,995 56,995
Interest 9,341 1,021 10,362
Total additions 93,461 41,330 134,791
Deductions
Claims Consultant 34,745 34,745
Grant payments 248,297 248,297
Total deductions 34,745 248,297 283,042
Change in net position 58,716 (206,967) (148,251)
Net position, beginning of year 2,158,043 2,614,435 4,772,478
Net position, end of year $ 2,216,759 $ 2,407,468 $4,624,227
See accompanying independent auditors1 report.
-117
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-118
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. 119
Revenue Capacity-These schedules contain information to help the reader assess the County's
most significant local revenue source, the property tax. 124
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. 130
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. 133
Operating Information-These schedules contain service and infrastructure data to help the
reader understand how the information in the County's financial report relates to the services
provided and the activities performed by the County. 135
Table 1
CO
U
N
T
Y
OF
HA
W
AI
'
I
Ne
t
Po
s
i
t
i
o
n
by
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t
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Fi
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c
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a
r
s
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
2012 2013, as 2014 ~ted
Go
v
e
r
n
m
e
n
t
a
l
ac
t
i
v
i
t
i
e
s
Ne
t
in
v
e
s
t
m
e
n
t
in
ca
p
i
t
a
l
as
s
e
t
s
$3
6
4
,
6
6
2
,
3
7
7
$3
8
6
,
8
6
1
,
2
9
6
$3
9
4
,
7
8
9
,
6
3
5
$4
1
9
,
1
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4
,
5
5
9
$4
1
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,
6
1
5
,
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$4
6
9
,
2
3
5
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1
$5
1
4
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0
9
,
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$5
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$699,326,156 $734,889,023
Re
s
t
r
i
c
t
e
d
41
,
9
5
0
,
2
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2
44
,
7
3
7
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5
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8
54
,
8
5
7
,
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3
66
,
9
7
7
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9
3
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63
,
4
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5
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48,360,223 64,437,707 89,620,936
Un
r
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s
t
r
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c
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d
(1
1
,
7
4
1
,
7
4
3
)
8,
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5
91
1
21
,
3
5
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1
27
,
3
2
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4
42
,
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5
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1
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2
37
,
6
2
3
,
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3
7
40
,
2
8
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,
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4
6
39,340,897 181,055 (18,007,624)
To
t
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l
go
v
e
r
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m
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n
t
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l
ac
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s
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_$
3
9
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,
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0
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4
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4
7
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6
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1
$6
8
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$763,944,918 _$806,502,335
Bu
s
i
n
e
s
s
·
t
y
p
e
ac
t
i
v
i
t
i
e
s
Ne
t
in
v
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s
t
m
e
n
t
in
ca
p
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t
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l
as
s
e
t
s
$
32
5
,
8
0
0
$
31
7
,
5
3
4
$
31
0
,
4
0
9
$
30
7
,
4
2
4
$
30
5
,
1
2
7
$
30
3
,
2
4
4
$
30
8
,
9
6
6
$
315,848 $ 315,255 $ 368,849
Re
s
t
r
i
c
t
e
d
18
2
,
1
6
7
18
2
,
7
9
7
18
3
,
8
3
2
18
4
,
3
5
2
18
4
,
6
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3
18
4
,
9
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4
18
5
,
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7
185,148
'
Un
r
e
s
t
r
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c
t
e
d
85
0
,
9
6
2
81
3
,
4
3
1
63
6
,
7
5
6
60
8
,
1
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5
60
9
,
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9
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1
455 918 1,045,190 1,093,750
....
.
.
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.
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.
To
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bu
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i
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1,
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5
8
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~
\D
Pr
i
m
a
r
y
go
v
e
r
n
m
e
n
t
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t
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s
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t
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t
s
$3
6
4
,
9
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1
7
7
$3
87
,
1
7
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,
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3
0
$3
9
5
,
1
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4
4
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1
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4
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1
,
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3
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1
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,
9
2
0
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6
0
6
$4
6
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,
5
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2
5
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1
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$699,641,411 $735,257,872
Re
s
t
r
i
c
t
e
d
42
,
1
3
2
,
4
2
9
44
,
9
2
0
,
3
8
5
55
,
0
4
0
,
8
5
5
67
,
1
6
2
,
2
8
7
63
,
5
9
3
,
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2
2
44
,
1
4
3
,
5
7
4
52
,
0
2
5
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48,545,371 64,437,707 89,620,936
Un
r
e
s
t
r
i
c
t
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d
(1
0
,
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9
0
,
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1
)
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6
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27
,
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3
7
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,
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0
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1
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1
,
4
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3
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,
7
3
6
,
6
2
7
39,796,815 1,226,245 (16,913,874)
To
t
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l
pr
i
m
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r
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v
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9
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,
7
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8
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5
5
7
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7
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,
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_
5
1
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3
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$765 305,363 $807,964,934
Un
a
u
d
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t
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d
·
se
e
ac
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o
m
p
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au
d
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s
'
re
p
o
r
t
.
Table 2
CO
U
N
T
Y
OF
HA
W
A
r
i
Ch
a
n
g
e
s
in
Ne
t
Po
s
i
t
i
o
n
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
2013, as 2014 ~tated
Pr
o
g
r
a
m
Re
v
e
n
u
e
s
Go
v
e
r
n
m
e
n
t
a
l
ac
t
i
v
i
t
i
e
s
:
Ch
a
r
g
e
s
fo
r
se
r
v
i
c
e
s
:
Ge
n
e
r
a
l
go
v
e
r
n
m
e
n
t
$
3,
2
2
7
,
4
2
0
$
4,
0
3
2
,
5
4
2
$
4,
4
6
0
,
0
1
6
$
6,
0
1
7
,
8
1
9
$
5,
4
4
2
,
9
5
0
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4,
3
1
5
,
8
4
9
$
1,
8
5
6
,
7
9
5
$
2,
3
0
6
,
8
5
5
$ 1,695,152 $ 2,495,917
Pu
b
l
i
c
sa
f
e
t
y
6,
2
6
2
,
2
5
9
6,
9
7
5
,
9
6
2
5,
7
9
8
,
1
2
6
5,
8
4
3
,
7
3
3
4,
8
4
6
,
8
3
4
4,
4
4
9
,
5
1
9
4,
4
4
7
,
1
2
0
5,
1
3
6
,
2
7
8
5,117,102 5,562,424
Hi
g
h
w
a
y
s
an
d
st
r
e
e
t
s
7,
6
2
9
,
1
3
9
9,
0
7
9
,
0
8
4
9,
3
5
4
,
6
3
9
9,
7
0
1
,
8
1
5
9,
6
3
6
,
7
9
9
9,
3
5
1
,
2
1
9
9,
8
0
0
,
9
8
3
10
,
5
4
4
,
7
1
1
10,159,443 13,901,679
He
a
l
t
h
,
ed
u
c
a
t
i
o
n
an
d
we
l
f
a
r
e
1,
2
7
2
,
0
9
1
98
0
,
1
4
7
79
9
,
0
7
5
75
4
,
7
5
8
53
2
,
8
3
2
71
3
,
7
7
4
42
4
,
1
0
7
454,913 570,312 559,381
Cu
l
t
u
r
e
an
d
re
c
r
e
a
t
i
o
n
1,
5
2
1
,
1
2
7
1,
4
3
9
,
7
8
4
1,
6
3
4
,
0
0
8
1,
5
9
5
,
4
0
9
1,
5
5
7
,
5
9
7
1,
6
0
9
,
0
4
1
1,
6
2
6
,
1
7
8
1,
6
0
1
,
1
9
5
1,794,553 1,954,213
Sa
n
i
t
a
t
i
o
n
15
,
4
6
5
,
4
7
8
16
,
4
6
9
,
7
4
5
18
,
4
8
6
,
5
0
2
18
,
6
4
3
,
9
5
2
16
,
4
1
5
,
9
8
5
14
,
9
3
4
,
5
7
0
15
,
8
8
9
,
3
6
4
14
,
8
3
1
,
8
4
6
15,593,933 16,426,521
Op
e
r
a
t
i
n
g
gr
a
n
t
s
an
d
co
n
t
r
i
b
u
t
i
o
n
s
36
,
3
7
0
,
9
9
3
38
,
2
5
2
,
8
8
9
38
,
0
6
8
,
1
3
8
46
,
l
l
7
,
3
9
9
42
,
2
7
3
,
7
9
5
49
,
5
7
1
,
1
7
3
50
,
8
2
0
,
9
5
1
45
,
7
6
7
,
6
5
5
44,410,353 42,957,370
Ca
p
i
t
a
l
gr
a
n
t
s
an
d
co
n
t
r
i
b
u
t
i
o
n
s
26
,
2
2
1
,
6
2
7
14
,
8
0
1
,
8
2
8
7,
8
0
5
,
9
8
6
9,
3
2
7
,
4
0
8
15
,
7
2
8
,
1
8
6
13
,
5
3
2
,
6
6
9
38
,
8
1
0
,
8
0
6
86
,
7
5
4
,
0
3
3
107 584,670 62,370,497
To
t
a
l
go
v
e
r
n
m
e
n
t
a
l
ac
t
i
v
i
t
e
s
pr
o
g
r
a
m
re
v
e
n
u
e
s
97
,
9
7
0
,
1
3
4
92
,
0
3
1
,
9
8
1
86
,
4
0
6
,
4
9
0
98
,
0
0
2
,
2
9
3
96
,
4
3
4
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9
7
8
98
,
4
7
7
,
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1
4
12
3
,
6
7
6
,
3
0
4
16
7
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3
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4
8
6
_186,925,518 146,228,002
Bu
s
i
n
e
s
s
-
t
y
p
e
ac
t
i
v
i
t
i
e
s
:
Ch
a
r
g
e
s
fo
r
se
r
v
i
c
e
s
:
He
a
l
t
h
,
ed
u
c
a
t
i
o
n
an
d
we
l
f
a
r
e
31
4
,
9
7
1
33
8
,
1
4
1
34
5
,
8
0
2
36
5
,
6
5
5
37
1
,
5
1
1
33
7
,
9
8
2
37
2
,
5
9
9
393,464 432,057 468,018
Op
e
r
a
t
i
n
g
gr
a
n
t
s
an
d
co
n
t
r
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b
u
t
i
o
n
s
-
To
t
a
l
bu
s
i
n
e
s
s
-
t
y
p
e
ac
t
i
v
i
t
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e
s
pr
o
g
r
a
m
re
v
e
n
u
e
s
13
5
,
8
2
9
45
0
,
8
0
0
14
1
,
0
1
9
47
9
,
1
6
0
13
4
,
2
1
1
48
0
,
0
1
3
12
5
,
7
9
5
49
1
,
4
5
0
13
5
,
6
7
4
50
7
,
1
8
5
13
6
,
8
0
2
47
4
,
7
8
4
13
3
,
2
1
5
50
5
,
8
1
4
131,227 524,691 123,800 555,857 127,119 595,137
N
0
To
t
a
l
pr
i
m
a
c
y
gr
o
v
e
m
m
e
n
t
pr
o
g
r
a
m
re
v
e
n
u
e
s
$
98
,
4
2
0
,
9
3
4
$
92
,
5
1
1
,
1
4
1
$
86
,
8
8
6
,
5
0
3
$
98
,
4
9
3
,
7
4
3
$
96
,
9
4
2
,
1
6
3
$
98
,
9
5
2
,
5
9
8
$
12
4
,
1
8
2
,
1
1
8
$
16
7
,
9
2
2
,
1
7
7
_$ 187,481,375 $ 146,823,139
'
Ex
p
e
n
s
e
s
Go
v
e
r
n
m
e
n
t
a
l
ac
t
i
v
i
t
i
e
s
:
Ge
n
e
r
a
l
go
v
e
r
n
m
e
n
t
$
51
,
2
6
2
,
3
2
9
$
38
,
2
6
4
,
1
3
2
$
46
,
3
4
9
,
9
0
4
$
68
,
7
9
4
,
9
6
1
$
69
,
9
6
8
,
5
3
4
$
65
,
5
5
2
,
2
7
8
$
53
,
4
3
9
,
4
2
8
$
56
,
1
1
5
,
5
9
9
$ 55,616,102 $ 59,448,042
Pu
b
l
i
c
sa
f
e
t
y
94
,
4
2
2
,
0
5
7
10
6
,
0
6
7
,
4
6
6
11
8
,
0
1
0
,
3
1
6
13
7
,
5
0
0
,
6
0
8
14
4
,
7
5
5
,
8
3
7
14
8
,
1
1
5
,
4
2
8
15
4
,
0
0
8
,
0
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2
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151,975,049 163,889,113
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g
h
w
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d
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s
20
,
8
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1
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26
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14,301,921 12,911,436
To
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4
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t
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s
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t
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Table 2
Go
v
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r
n
m
e
n
t
a
l
ac
t
i
v
i
t
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e
s
:
Ge
n
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r
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u
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s
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Pr
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ta
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12
9
,
7
7
5
,
4
1
0
$
15
2
,
1
8
2
,
8
0
6
$1
8
3
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6
1
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0
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1
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7
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6
9
0
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22
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2
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2
,
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$
21
8
,
0
3
7
,
5
6
7
$
22
5
,
0
5
5
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0
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9
$
20
9
,
8
9
4
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4
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$200,775,779 $221,260,681
Pu
b
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se
r
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6,
3
5
1
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2
7
3
6,
8
1
1
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4
8
3
7,
3
9
6
,
0
8
4
8,3
8
1
,
3
6
7
10
,
2
2
8
,
6
0
7
9,
6
4
7
,
0
5
5
9,
2
9
6
,
8
5
2
9,
8
9
6
,
7
1
5
10,766,021 10,380,341
Pu
b
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3
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3
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4
1
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0
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5
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2
11,087,369 10,792,967
Fu
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ta
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5
8
0
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7
4
0
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8
5
7
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3
9
4
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4
7
1
,
4
5
3
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8
8
7
,
9
9
8
7,
6
6
2
,
1
1
3
7,4
0
5
,
9
9
6
7,
6
0
3
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6,352,944 7,373,475
Gr
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16
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7
3
4
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8
5
0
18
,
5
1
0
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2
6
2
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,
9
9
9
;
5
%
19
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3
9
5
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0
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9
17
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8
8
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5
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3
8
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5
3
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6
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17,750,132 17,705,917
In
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(l
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42
,
4
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8
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11
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9
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3
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2
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25
,
3
3
7
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6
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$ 83,157,164 $ 42,557,417
Bu
s
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s
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y
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)
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5
,
1
6
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)
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2
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5
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9
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13,280 403,531 102,154
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4
6
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d
i
t
o
r
s
'
re
p
o
r
t
.
-N -
Table 3
CO
U
N
T
Y
OF
H
A
W
AI
'
I
Fu
n
d
Ba
l
a
n
c
e
s
,
Go
v
e
r
n
m
e
n
t
a
l
Fu
n
d
s
(M
o
d
i
f
i
e
d
ac
c
r
u
a
l
ba
s
i
s
of
ac
c
o
u
n
t
i
n
g
)
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
Ge
n
e
r
a
l
Fu
n
d
:
Re
s
e
r
v
e
d
$
8,
3
1
3
,
8
0
0
$
II
,
5
1
9
,
1
3
5
$
15
,
6
5
9
,
6
8
3
$
I 7,
4
6
8
,
6
0
6
$
14
,
9
7
4
,
2
7
2
$
8,
0
8
8
,
3
4
7
Un
r
e
s
e
r
v
e
d
15
,
6
6
4
,
2
7
2
23
,
4
4
6
,
0
7
2
28
,
9
5
0
,
6
6
8
31
,
4
0
1
,
7
4
5
44
,
6
0
3
,
9
7
5
31
,
4
3
0
,
5
7
0
No
n
s
p
e
n
d
a
b
l
e
Re
s
t
r
i
c
t
e
d
-
Co
m
m
i
t
t
e
d
N N
As
s
i
g
n
e
d
Un
a
s
s
i
g
n
e
d
To
t
a
l
ge
n
e
r
a
l
fu
n
d
23
,
9
7
8
,
0
7
2
34
,
9
6
5
,
2
0
7
44
,
6
1
0
,
3
5
1
48
,
8
7
0
,
3
5
1
59
,
5
7
8
,
2
4
7
39
,
5
1
8
,
9
1
7
Al
l
ot
h
e
r
Go
v
e
r
n
m
e
n
t
Fu
n
d
s
:
Re
s
e
r
v
e
d
66
,
7
2
0
,
8
3
6
10
3
,
3
5
9
,
5
6
3
12
2
,
0
6
0
,
5
5
0
14
1
,
9
7
2
,
0
6
7
17
7
,
9
9
5
,
1
8
4
10
6
,
5
5
5
,
6
1
8
Un
r
e
s
e
r
v
e
d
,
re
p
o
r
t
e
d
in
:
Sp
e
c
i
a
l
re
v
e
n
u
e
fu
n
d
18
,
5
2
5
,
7
2
7
20
,
3
4
2
,
1
1
2
24
,
8
7
4
,
7
4
4
24
,
5
5
3
,
3
8
6
26
,
0
8
8
,
6
8
5
29
,
4
3
6
,
4
6
3
Ca
p
i
t
a
l
pr
o
j
e
c
t
s
fu
n
d
64
,
9
1
5
,
4
8
3
48
,
3
4
5
,
8
3
8
95
,
6
8
4
,
2
1
5
39
,
1
1
6
,
3
6
5
(2
0
,
1
0
1
,
3
6
9
)
(3
,
2
9
0
,
8
1
3
)
Re
s
t
r
i
c
t
e
d
Co
m
m
i
t
t
e
d
Un
a
s
s
i
g
n
e
d
To
t
a
l
of
ot
h
e
r
go
v
e
r
n
m
e
n
t
a
l
fu
n
d
s
15
0
,
1
6
2
,
0
4
6
17
2
,
0
4
7
,
5
1
3
24
2
,
6
1
9
,
5
0
9
20
5
,
6
4
1
,
8
1
8
_1
8
3
,
9
8
2
,
5
0
0
13
2
,
7
0
1
,
2
6
8
To
t
a
l
Fu
n
d
Ba
l
a
n
c
e
s
$1
7
4
,
1
4
0
,
1
1
8
$2
0
7
,
0
1
2
,
7
2
0
$2
8
7
,
2
2
9
,
8
6
0
$2
5
4
,
5
1
2
,
1
6
9
$2
4
3
,
5
6
0
,
7
4
7
$
17
2
,
2
2
0
,
1
8
5
Un
a
u
d
i
t
e
d
~ se
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.
20
1
1
20
1
2
2013 2014
$
$
$ $
2,
8
3
5
,
3
6
1
4,
2
9
6
,
3
6
3
8,
7
5
6
,
4
2
6
17
,
9
6
0
,
5
9
6
10
,
8
0
9
,
4
0
4
44
,
6
5
8
,
1
5
0
3,
3
0
4
,
5
5
1
3,
6
9
3
,
9
5
8
11
,
7
1
0
,
8
7
5
21
,
8
4
0
,
8
4
3
8,
1
7
6
,
7
2
7
48
,
7
2
6
,
9
5
4
3,492,464 4,863,905 12,065,528 24,832,390 8,694,320 53,948,607 3,794,963 5,459,350 12,794,782 31,673,075 1,824,889 55,547,059
77
,
7
3
9
,
6
2
8
40
,
1
4
8
,
8
7
8
(3
,
6
0
9
,
3
3
2
)
-
Il
4
,
2
7
9
,
1
7
4
71
,
0
3
3
,
7
1
2
36
,
8
6
6
,
1
2
0
(1
0
,
2
5
8
,
3
1
7
)
97
,
6
4
1
,
5
1
5
104,886,880 29,502,567 6,914,320 141,303,767 107,165,275 38,029,424 5,212,487 150,407,186
__
t
1
5
8
,
9
3
7
,
3
2
4
$1
4
6
,
3
6
8
,
4
6
9
, $ 195,252,374 $205,954,245
NO
T
E
-
-
-
G
A
S
B
54
wa
s
im
p
l
e
m
e
n
t
e
d
in
20
1
1
.
Ex
c
e
p
t
fo
r
th
e
un
a
s
s
i
g
n
e
d
ca
t
e
g
o
r
y
,
co
n
v
e
r
s
i
o
n
of
pr
i
o
r
ye
a
r
da
t
a
to
ne
w
ca
t
e
g
o
r
i
e
s
is
no
t
po
s
s
i
b
l
e
at
th
i
s
ti
m
e
.
Table 4
COUNTY OF HAWA!'I
Changes in Fund Balances, Governmental Funds
(Modified accrual basis ofaccounting)
Last Ten Fiscal Years
{Amounts in thousands)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Revenues:
Property tax $131,087 $153,207 $181,446 $208,313 $225,858 $215,548 $216,511 $208,231 $201,201 $ 223,482
Public service company tax 6,351 6,812 7,396 8,381 10,229 9,647 9,297 9,897 10,766 10,380
Fuel tax 7,581 7,857 8,471 7,888 7,662 7,406 7,603 8,293 6,353 7,373
Public utility franchise tax 6,017 7,329 8,520 9,027 11,118 8,963 9,416 11,065 11,087 10,793
Licenses and pennits 14,442 16,544 16,269 15,918 14,972 14,725 15,097 15,790 15,991 19,618
Intergovenunental 73,372 69,637 63,599 72,601 70,869 77,614 93,748 100,867 79,912 75,257
Charges fur services 18,149 19,852 21,685 22,154 21,404 18,909 16,416 16,885 17,055 19,392
Investment earnings (loss) 3,104 5,223 10,291 12,144 8,914 2,253 510 406 (618) 1,699
Settlement contributions 12,500
Other 4,450 4,380 5,073 7,151 5,690 3,241 7,874 4,201 4,399 30,084
Total Revenues 264,553 290,841 322,750 363,577 376,716 358,306 376,472 375,635 358,646 398,078
Expenditures:
Current:
General govenunent 26,183 31,153 37,652 42,991 45,882 40,586 34,251 35,088 33,360 36,679
Public safety 76,404 83,591 93,241 103,617 107,540 108,798 104,917 104,523 106,885 111,221
Highways and streets 9,787 12,608 14,033 19,529 17,159 20,222 17,114 17,338 17,923 20,270
Sanitation 21,883 26,565 31,817 33,405 35,025 35,675 28,424 29,511 30,672 29,949
Health, education and welfare 19,870 19,050 21,470 24,609 24,596 25,519 26,847 23,749 24,199 23,070
Culture and recreation 13,982 14,731 17,118 18,179 18,853 17,266 16,001 16,763 16,337 18,334
Pension and retirement contributions 14,204 19,937 21,796 24,296 28,870 28,509 27,284 27,773 29,816 33,032
Employees' health insurance 16,168 16,133 16,941 18,089 19,119 23,573 25,212 25,902 26,011 26,786
Other postemployment benefits 13,629 14,950 15,700 17,307 3,170
Other 6,133 6,780 5,108 5,344 6,257 4,773 4,758 4,183 2,991 3,238
Debt service:
Principal 13,150 14,060 16,076 !6,548 19,749 20,720 42,233 24,834 25,718 19,013
Interest 9,534 9,914 9,894 13,116 12,790 14,584 14,841 15,032 14,345 14,644
Capital outlay 32,816 30,588 52,285 70,156 89,368 100,653 87,782 71,220 48,565 51,369
Total Expenditures 260,114 285,110 337,431 403,508 440,158 456,578 446,971 395,916 376,822 390,775
Revenues over (under) Expenditures 4,439 5,731 (14,681) (39,931) (63,442) (98,272) (70,499) (20,281) (18,176) 7,303
Other Financing Sources (Uses):
Sale ofassets 1,486 82 3,470 58 10 6 153 10
Capita11eases 1,369 404 2,403 2,187 1,026 1,948 47 2,521 1,307 14
State Revolving Fund loans 1,504 25 6,255 1,916 280 6,8!1 9,257 4,569 4,991 3,072
Sale of bonds 30,000 25,000 85,000 50,000 45,000 50,480
Issuance of bond anticipation notes (BANs) 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 ofrefunded debt (9,635)
Transfers in 42,119 45,691 59,139 64,929 56,697 61,495 56,099 59,971 51,356 61,238
Transfers out {42,119) (45,691) (59,139) (64,929) (56,697) (61,4951 (56,099) (59,9111 (51,356) (61,238)
Total other financing sources 35,965 26,483 95,452 7,573 51,549 27,750 56,388 7,243 66,872 3,096
Net change in fund balances $ 40,404 $ 32,214 $ 80,771 $ (32,358) $ (11,893) $ (70,522) $ {14,lll) $ (13,038) $ 48,696 $ 10,399
Debt service as a percentage of
noncapita1 expenditures 10.3% 9.7% 9.0% 9.3% 9.0% 10.4% 15.9% 12.3% 13.9% 10.0%
Unaudited-see accompanying Independent audltors' report
-123
Table 5
CO
U
N
T
Y
OF
HA
W
AI
'
I
Re
a
l
Pr
o
p
e
r
t
y
As
s
e
s
s
e
d
Va
l
u
e
s
by
Cl
a
s
s
i
f
i
c
a
t
i
o
n
an
d
Ta
x
Ra
t
e
s
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
(V
a
l
u
e
s
in
Th
o
u
s
a
n
d
s
)
Fi
s
c
a
l
Ye
a
r
Cl
a
s
s
of
Pr
o
E
e
r
t
y
Va
l
u
e
of
Ne
t
Ta
x
a
b
l
e
Bu
i
l
d
i
n
g
Bu
i
l
d
i
n
g
Ta
x
Ra
t
e
s
Pe
r
$1
0
0
0
Va
l
u
e
of
Ne
t
Ta
x
a
b
l
e
La
n
d
La
n
d
Ta
x
Ra
t
e
s
Pe
r
$1
0
0
0
Value of Net Taxable Real ProEert;t
-N ~
20
0
5
Im
p
r
o
v
e
d
Re
s
i
d
e
n
t
i
a
l
Un
i
m
p
r
o
v
e
d
Re
s
i
d
e
n
t
i
a
l
Ap
a
r
t
m
e
n
t
Ho
t
e
l
an
d
Re
s
o
r
t
Co
m
m
e
r
c
i
a
l
In
d
u
s
t
r
i
a
l
Ag
r
i
c
u
l
t
u
r
a
l
Co
n
s
e
r
v
a
t
i
o
n
Ho
m
e
o
w
n
e
r
s
$9
6
9
,
5
0
0
30
,
4
0
8
1,
7
7
2
,
9
3
0
84
5
,
0
2
6
51
6
,
9
4
5
22
6
,
2
6
5
91
7
,
2
5
3
24
,
4
8
5
1,
7
1
4
,
5
5
5
$7
,
0
1
7
,
3
6
7
$9
.
1
0
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
5.
5
5
$1
,
2
6
4
,
1
0
0
36
6
,
8
8
5
74
5
,
5
3
0
89
7
,
2
6
8
45
5
,
6
6
4
23
9
,
0
2
2
1,
6
9
7
,
1
1
7
34
6
,
1
8
6
1,
5
0
4
,
8
2
1
$7
,
5
1
6
,
5
9
3
$
9.
1
0
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
5.
5
5
$2,233,600 397,293 2,518,460 1,742,294 972,609 465,287 2,614,370 370,671 3,219,376 $14,533,960
Fi
s
c
a
l
ye
a
r
20
0
5
to
t
a
l
di
r
e
c
t
ra
t
e
$8
.
9
2
20
0
6
lm
p
r
o
v
e
d
Re
s
i
d
e
n
t
i
a
l
Un
i
m
p
r
o
v
e
d
Re
s
i
d
e
n
t
i
a
l
Ap
a
r
t
m
e
n
t
Ho
t
e
l
an
d
Re
s
o
r
t
Co
m
m
e
r
c
i
a
l
In
d
u
s
t
r
i
a
l
Ag
r
i
c
u
l
t
u
r
a
l
Co
n
s
e
r
v
a
t
i
o
n
Ho
m
e
o
w
n
e
r
s
$1
,
0
8
2
,
2
4
4
29
,
7
6
2
2,
3
4
0
,
5
1
5
98
1
,
5
3
8
53
8
,
3
8
9
25
5
,
2
9
2
97
0
,
1
9
8
21
,
4
8
8
1,
1
9
1
,
4
3
5
$7
,
4
1
0
,
8
6
1
$9
.
1
0
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
5.
5
5
$1
,
9
3
5
,
0
8
5
47
0
,
7
3
8
90
7
,
1
5
0
94
2
,
9
8
8
50
2
,
4
3
3
28
0
,
9
5
0
2,
0
8
2
,
8
3
8
34
0
,
5
7
3
1,
6
0
4
,
4
1
8
$9
,
0
6
7
,
1
7
3
$
9.
1
0
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
9.
8
5
5.
5
5
$3,017,329 500,500 3,247,665 1,924,526 1,040,822 536,242 3,053,036 362,061 2,795,853 $16,478,034
Fi
s
c
a
l
ye
a
r
20
0
6
to
t
a
l
di
r
e
c
t
ra
t
e
$8
.
9
8
Co
n
t
i
n
u
e
d
ne
x
t
pa
g
e
.
Table 5
Fi
s
c
a
l
Cl
a
s
s
of
Va
l
u
e
of
Ne
t
Ta
x
a
b
l
e
Bu
i
l
d
i
n
g
Ta
x
Ra
t
e
s
Va
l
u
e
of
Ne
t
Ta
x
a
b
l
e
La
n
d
Ta
x
Ra
t
e
s
Value of Net Taxable
Ye
a
r
Pr
o
E
e
~
Bu
i
l
d
i
n
j
l
Pe
r
$1
0
0
0
La
n
d
Pe
r
$1
0
0
0
Real Pro~eerty
20
0
7
Im
p
r
o
v
e
d
Re
s
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n
t
i
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l
Un
i
m
p
r
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v
e
d
Re
s
i
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n
t
i
a
l
Ap
a
r
t
m
e
n
t
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t
e
l
an
d
Re
s
o
r
t
Co
m
m
e
r
c
i
a
l
In
d
u
s
t
r
i
a
l
Ag
r
i
c
u
l
t
u
r
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l
Co
n
s
e
r
v
a
t
i
o
n
Ho
m
e
o
w
n
e
r
s
$1
,
2
8
1
,
0
5
0
43
,
3
7
2
3,
1
5
4
,
9
8
1
1,
2
0
9
,
0
5
0
62
0
,
5
6
7
31
7
,
8
5
2
1,
1
9
5
,
2
5
6
28
,
4
7
2
1,
4
0
8
,
2
1
5
$9
,
2
5
8
,
8
1
5
$
8.
1
0
8.
1
0
8.
1
0
9.
0
0
9.
0
0
9.
0
0
8.
3
5
8.
5
5
5.
5
5
$2
,
9
3
8
,
4
0
2
76
2
,
6
6
4
1,
3
4
7
,
1
5
8
1,
0
5
0
,
6
2
8
66
2
,
8
0
1
39
7
,
2
1
1
3,
9
8
5
,
6
4
7
35
6
,
3
1
6
1,
9
4
7
,
9
8
3
$1
3
,
4
4
8
,
8
1
0
$
8.
1
0
8.
1
0
8.
1
0
9.
0
0
9.
0
0
9.
0
0
8.
3
5
8.
5
5
5.
5
5
$4,219,452 806,036 4,502,139 2,259,678 1,283,368 715,063 5,180,903 384,788 3,356,198 $22,707,625
Fi
s
c
a
l
ye
a
r
20
0
7
to
t
a
l
di
r
e
c
t
ra
t
e
$7
.
9
6
-tv
V>
20
0
8
Im
p
r
o
v
e
d
Re
s
i
d
e
n
t
i
a
l
Un
i
m
p
r
o
v
e
d
Re
s
i
d
e
n
t
i
a
l
Ap
a
r
t
m
e
n
t
Ho
t
e
l
an
d
Re
s
o
r
t
Co
m
m
e
r
c
i
a
l
In
d
u
s
t
r
i
a
l
Ag
r
i
c
u
l
t
u
r
a
l
Co
n
s
e
r
v
a
t
i
o
n
Ho
m
e
o
w
n
e
r
s
$1
,
5
2
0
,
2
3
4
40
,
0
5
6
3,
6
9
0
,
3
7
1
1,
3
7
7
,
4
9
2
69
5
,
3
1
8
37
0
,
1
1
8
1,
3
5
3
,
4
0
3
31
,
7
7
1
1,
6
8
7
,
6
4
9
$
8.
1
0
8.
1
0
8.
1
0
9.
0
0
9.
0
0
9.
0
0
8.
3
5
8.
5
5
5.
5
5
$3
,
8
4
3
,
1
6
9
43
0
,
7
5
7
1,
5
1
7
,
5
0
0
1,
1
9
4
,
8
7
9
80
5
,
1
6
8
47
4
,
1
0
0
4,
5
2
9
,
1
8
7
34
7
,
7
9
8
2,
3
6
0
,
8
7
3
$
8.
1
0
8.
1
0
8.
1
0
9.
0
0
9.
0
0
9.
0
0
8.
3
5
8.
5
5
5.
5
5
$5,363,403 470,813 5,207,871 2,572,371 1,500,486 844,218 5,882,590 379,569 4,048,522
$1
0
,
7
6
6
,
4
1
2
$1
5
,
5
0
3
,
4
3
1
$26,269,843
Fi
s
c
a
l
ye
a
r
20
0
8
to
t
a
l
di
r
e
c
t
ra
t
e
$7
.
9
4
20
0
9
Re
s
i
d
e
n
t
i
a
l
Ap
a
r
t
m
e
n
t
Ho
t
e
l
an
d
Re
s
o
r
t
Co
m
m
e
r
c
i
a
l
In
d
u
s
t
r
i
a
l
Ag
r
i
c
u
l
t
u
r
a
l
&
Na
t
i
v
e
Fo
r
e
s
t
Co
n
s
e
r
v
a
t
i
o
n
Ho
m
e
o
w
n
e
r
s
Af
f
o
r
d
a
b
l
e
Re
n
t
a
l
Ho
u
s
i
n
g
$2
,
3
8
5
,
7
1
4
4,
0
7
9
,
1
9
9
1,
5
4
2
,
7
1
2
74
2
,
5
6
1
41
8
,
6
0
7
2,
2
4
5
,
1
6
1
44
,
6
7
0
2,
0
9
1
,
8
9
1
41
,
7
9
3
$1
3
,
5
9
2
,
3
0
8
$
7.
1
0
8.
1
0
9.
0
0
9.
0
0
9.
0
0
6.
3
5
8.
5
5
5.
5
5
5.
5
5
$4
,
2
8
7
,
5
1
5
1,
5
6
1
,
0
0
9
1,
2
7
1
,
2
4
0
90
5
,
0
7
9
56
1
,
2
2
0
4,
3
2
5
,
7
4
3
34
0
,
2
5
4
2,
6
2
3
,
2
4
1
38
,
0
2
6
$1
5
,
9
1
3
,
3
2
7
$
8.
1
0
8.
1
0
9.
0
0
9.
0
0
9.
0
0
8.
3
5
8.
5
5
5.
5
5
5.
5
5
$6,673,229 5,640,208 2,813,952 1,647,640 979,827 6,570,904 384,924 4,715,132 79,819 $29,505,635
Fi
s
c
a
l
ye
a
r
20
0
9
to
t
a
l
di
r
e
c
t
ra
t
e
$7
.
6
8
Co
n
t
i
n
u
e
d
ne
x
t
pa
g
e
.
Table 5
Va
l
u
e
of
Bu
i
l
d
i
n
g
Va
l
u
e
of
La
n
d
Value of
Fi
s
c
a
l
Cl
a
s
s
of
Ne
t
Ta
x
a
b
l
e
Ta
x
Ra
t
e
s
Ne
t
Ta
x
a
b
l
e
Ta
x
Ra
t
e
s
Net Taxable
Ye
a
r
Pr
o
2
e
~
Bu
i
l
d
i
n
g
Pe
r
$1
0
0
0
La
n
d
Pe
r
$1
0
0
0
Real ProEerty
20
1
0
Re
s
i
d
e
n
t
i
a
l
$2
,
4
4
7
,
5
7
6
$
7.
1
0
$3
,
8
0
4
,
6
9
6
$
8.
1
0
$6,252,272
Ap
a
r
t
m
e
n
t
3,
6
0
2
,
5
1
4
8.
1
0
1,
5
4
6
,
8
6
6
8.
1
0
5,149,380
Ho
t
e
l
an
d
Re
s
o
r
t
1,
3
9
0
,
8
8
4
9.
0
0
1,
1
7
7
,
7
9
6
9.
0
0
2,568,680
Co
m
m
e
r
c
i
a
l
73
3
,
2
6
0
9.
0
0
92
8
,
9
9
9
9.
0
0
1,662,259
In
d
u
s
t
r
i
a
l
45
3
,
4
0
6
9.
0
0
59
3
,
2
2
4
9.
0
0
1,046,630
Ag
r
i
c
u
l
t
u
r
a
l
&
Na
t
i
v
e
Fo
r
e
s
t
2,
2
7
2
,
2
4
8
6.
3
5
3,
6
2
5
,
5
8
5
8.
3
5
5,897,833
Co
n
s
e
r
v
a
t
i
o
n
46
,
3
2
1
8.
5
5
33
7
,
8
6
0
8.
5
5
384,181
Ho
m
e
o
w
n
e
r
s
2,
3
8
8
,
0
4
8
5.
5
5
2,
6
8
6
,
6
9
2
5.
5
5
5,074,740
Af
f
o
r
d
a
b
l
e
Re
n
t
a
l
Ho
u
s
i
n
g
67
,
7
4
6
5.
5
5
47
,
7
0
3
5.
5
5
115,449
$1
3
,
4
0
2
,
0
0
3
$1
4
,
7
4
9
,
4
2
1
$28,151,424
Fi
s
c
a
l
ye
a
r
20
1
0
to
t
a
l
di
r
e
c
t
ra
t
e
$7
.
7
5
20
1
1
Re
s
i
d
e
n
t
i
a
l
$3
,
0
4
0
,
9
7
7
$
9.
1
0
$3
,
7
8
7
,
1
8
5
$9
.
1
0
$6,828,162
Ap
a
r
t
m
e
n
t
2,
6
6
0
,
6
0
0
9.
8
5
1,
1
4
4
,
8
7
3
9.
8
5
3,805,473
Ho
t
e
l
an
d
Re
s
o
r
t
82
0
,
4
1
8
9.
8
5
69
0
,
8
3
4
9.
8
5
1,511,252
~
10
Co
m
m
e
r
c
i
a
l
71
3
,
1
6
1
9.
1
0
90
8
,
7
4
1
9.
1
0
1,621,902
0
\
In
d
u
s
t
r
i
a
l
45
4
,
8
6
8
9.
1
0
59
4
,
5
8
9
9.
1
0
1,049,457
Ag
r
i
c
u
l
t
u
r
a
l
&
Na
t
i
v
e
Fo
r
e
s
t
2,
2
3
2
,
7
6
5
8.
3
5
2,
8
6
0
,
4
9
4
8.
3
5
5,093,259
Co
n
s
e
r
v
a
t
i
o
n
48
,
7
6
6
9.
8
5
34
1
,
4
9
6
9.
8
5
390,262
Ho
m
e
o
w
n
e
r
s
2,
4
7
9
,
4
3
7
5.
5
5
2,
5
7
3
,
5
2
7
5.
5
5
5,052,964
Af
f
o
r
d
a
b
l
e
Re
n
t
a
l
Ho
u
s
i
n
g
10
8
,
2
9
0
5.
5
5
57
,
8
2
1
5.
5
5
166,111
$1
2
,
5
5
9
,
2
8
2
$1
2
,
9
5
9
,
5
6
0
$25,518,842
Fi
s
c
a
l
ye
a
r
20
II
to
t
a
l
di
r
e
c
t
ra
t
e
$8
.
3
9
20
1
2
Re
s
i
d
e
n
t
i
a
l
$2
,
8
4
9
,
9
6
5
$9
.
1
0
$3
,
5
4
9
,
1
3
3
$9
.
1
0
$6,399,098
Ap
a
r
t
m
e
n
t
2,
7
7
2
,
1
9
0
9.
8
5
1,
1
4
7
,
2
8
8
9.
8
5
3,919,478
Ho
t
e
l
an
d
Re
s
o
r
t
77
1
,
9
7
1
9.
8
5
60
1
,
8
0
0
9.
8
5
1,373,771
Co
m
m
e
r
c
i
a
l
67
6
,
4
6
5
9.
1
0
83
7
,
0
9
4
9.
1
0
1,513,559
In
d
u
s
t
r
i
a
l
44
6
,
2
4
7
9.
1
0
56
3
,
7
1
0
9.
1
0
1,009,957
Ag
r
i
c
u
l
t
u
r
a
l
&
Na
t
i
v
e
Fo
r
e
s
t
2,
0
2
3
,
2
8
5
8.
3
5
2,
5
7
1
,
8
2
6
8.
3
5
4,595,111
Co
n
s
e
r
v
a
t
i
o
n
44
,
8
7
4
9.
8
5
32
3
,
2
1
0
9.
8
5
368,084
Ho
m
e
o
w
n
e
r
s
2,
4
8
0
,
0
3
8
5.
5
5
2,
5
2
4
,
6
1
1
5.
5
5
5,004,649
Af
f
o
r
d
a
b
l
e
Re
n
t
a
l
Ho
u
s
i
n
g
14
2
,
8
9
9
5.
5
5
79
,
4
9
8
5.
5
5
222,397
$1
2
,
2
0
7
,
9
3
4
$1
2
,
1
9
8
,
1
7
0
$24,406, I 04
Fi
s
c
a
l
ye
a
r
20
1
2
to
t
a
l
di
r
e
c
t
ra
t
e
$8
.
5
2
Co
n
t
i
n
u
e
d
ne
x
t
pa
g
e
.
Table 5
Fi
s
c
a
l
Cl
a
s
s
of
Va
l
u
e
of
Ne
t
Ta
x
a
b
l
e
Bu
i
l
d
i
n
g
Ta
x
Ra
t
e
s
Va
l
u
e
of
Ne
t
Ta
x
a
b
l
e
La
n
d
Ta
x
Ra
t
e
s
Value of Net Taxable
Ye
a
r
Pr
o
p
e
r
t
y
Bu
i
l
d
i
n
g
Pe
r
$1
0
0
0
La
n
d
Pe
r
$1
0
0
0
Real Property
20
1
3
Re
s
i
d
e
n
t
i
a
l
Ap
a
r
t
m
e
n
t
Ho
t
e
l
an
d
Re
s
o
r
t
Co
m
m
e
r
c
i
a
l
In
d
u
s
t
r
i
a
l
Ag
r
i
c
u
l
t
u
r
a
l
&
Na
t
i
v
e
Fo
r
e
s
t
Co
n
s
e
r
v
a
t
i
o
n
Ho
m
e
o
w
n
e
r
s
Af
f
o
r
d
a
b
l
e
Re
n
t
a
l
Ho
u
s
i
n
g
$2
,
8
7
2
,
8
9
0
2,
4
0
3
,
2
1
6
71
1
,
8
8
4
66
1
,
3
2
3
47
2
,
2
4
2
2,
0
6
7
,
0
9
7
41
,
5
0
5
2,
5
2
5
,
0
1
8
11
0
,
2
0
8
$1
1
,
8
6
5
,
3
8
3
$
9.
1
0
9.
8
5
9.
8
5
9.
1
0
9.
1
0
8.
3
5
9.
8
5
5.
5
5
5.
5
5
$3
,
5
3
4
,
9
6
1
1,
0
6
9
,
9
9
9
50
6
,
9
9
8
80
6
,
1
3
1
46
3
,
8
3
2
2,
4
2
5
,
7
9
8
28
7
,
3
7
5
2,
5
0
2
,
8
2
2
64
,
2
7
0
$1
1
,
6
6
2
,
1
8
6
$
10
.
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1
5
$6,407,851 3,473,215 1,218,882 1,467,454 936,074 4,492,895 328,880 5,027,840 174,478 $23,527,569
-N
-..
.
]
20
1
4
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25
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5
2,
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6
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2
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$6,431,457 3,508,467 1,147,831 1,414,302 914,694 4,470,726 292,504 5,182,249 180,046 $23,542,276
Fi
s
c
a
l
ye
a
r
20
1
4
to
t
a
l
di
r
e
c
t
ra
t
e
$9
.
2
3
So
u
r
c
e
:
Co
u
n
t
y
of
H
a
w
a
i
'
i
,
De
p
a
r
t
m
e
n
t
of
Fi
n
a
n
c
e
,
Re
a
l
Pr
o
p
e
r
t
y
Ta
x
Di
v
i
s
i
o
n
NO
T
E
S
:
As
s
e
s
s
e
d
va
l
u
e
is
at
10
0
%
of
ma
r
k
e
t
va
l
u
e
.
Pr
o
p
e
r
t
y
is
re
a
s
s
e
s
s
e
d
an
n
u
a
l
l
y
.
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e
Co
u
n
t
y
Co
u
n
c
i
l
se
t
s
th
e
ta
x
ra
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e
s
an
n
u
a
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l
y
.
Th
e
r
e
ar
e
no
ov
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r
l
a
p
p
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n
g
pr
o
p
e
r
t
y
ta
x
ra
t
e
s
in
th
e
Co
u
n
t
y
of
Ha
w
a
i
i
.
Th
e
im
p
r
o
v
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n
t
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an
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i
m
p
r
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d
re
s
i
d
e
n
t
i
a
l
cl
a
s
s
e
s
we
r
e
co
m
b
i
n
e
d
in
t
o
a
si
n
g
l
e
cl
a
s
s
be
g
i
n
n
i
n
g
with the fiscal
ye
a
r
s
en
d
i
n
g
Ju
n
e
30
,
20
0
9
.
Un
a
u
d
i
t
e
d
-
se
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.
Table 6
COUNTYOFHAWAI'I
Principal Taxpayers
June 30, 2014 and 2005
Fiscal Year 2014 Fiscal Year 2005
Percentage Percentage
2013 ofTotal 2004 of Total
Assessed Assessed Assessed Assessed
Taxpayer Business Valuation Rank Valuation Valuation Rank Valuation
Mauna Kea/Hapuna Beach Corps. Developer/Hotel $ 172,664,900 3 0.7% $
Hilton Land Investment 1 LLC Hotel 20 I ,844,300 0.9%
Hualalai Investors LLC Developer/Hotel 185,883,000 2 0.8%
Orchid 09 LLC Hotel 112,853,500 5 0.5%
WB KD Acquisition LLC Developer 66,357,900 7 0.3%
Mauna Lani Resort Inc. Developer/Hotel 93,320,500 6 0.4% 99,337,000 9 0.5%
Hilton Resorts Corp. Timeshare 148,089,500 4 0.6%
Target Coporation Retailer 64,456,100 9 0.3%
Kohanaiki Shores LLC Developer 65,032,900 8 0.3%
Ho Retail Properties Developer 59,844,900 10 0.3%
BP Bishop Estate Developer 488,641,200 1 2.5%
Mauna Kea Development Corp Hotels/Dev. 201,862,600 3 1.1%
WB Kukio Resorts LLC Developer 113,874,600 8 0.6%
WB Manini'owali LLC Developer 128,253,000 6 0.7%
Global Resort Partners Hotel 171,043,600 4 0.9%
Liliuokalani Trust Estate Land Trust 218,507,500 2 1.1%
FHR (ML) Hotel Holdings LLC Hotel 120,000,000 7 0.6%
Kaupulehu Makai Venture Developer 159,249,800 5 0.8%
RWH Inc. Hotel 59,804,200 10 0.3%
$1,170,347,500 5.1% $ 1,760,573,500 9.2%
Note: Gross valuation at January 1, 20 13: $23,542,277,844
Gross valuation at January 1, 2004: $19,202,446,000
Source: County ofHawai'i, Department of Finance, Real Property Tax Division
Unaudited -see accompanying independent auditors' report.
-128
Table 7
CO
U
N
T
Y
OF
HA
W
AI
'
I
Pr
o
p
e
r
t
y
Ta
x
Le
v
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e
s
an
d
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l
l
e
c
t
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o
n
s
La
s
t
Te
n
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s
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r
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u
t
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n
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g
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o
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l
Delinquent
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as
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Taxes as
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r
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of
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Percent of
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%
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%
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20
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o
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r
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e
:
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y
of
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a
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p
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re
p
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t
.
Table 8
CO
U
N
T
Y
OF
HA
W
AI
'
!
Ra
t
i
o
S
of
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t
s
t
a
n
d
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n
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b
t
by
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p
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s
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n
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s
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l
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s
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m
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in
th
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,
ex
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e
p
t
pe
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ca
p
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t
a
)
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s
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r
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v
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t
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s
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n
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r
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l
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v
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n
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~
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of
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r
s
o
n
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l
Per
In
c
o
m
e
(b
)
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p
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t
a
(b) Total Primary Government and Component Unit Percentage of Personal Per Income (b2_ Capita (b)
~
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8
2
3
,
5
4
3
33
,
9
5
4
,
6
7
1
31
,
7
3
0
,
3
1
1
44
,
6
7
3
,
2
9
3
42
,
4
8
1
,
1
7
6
40
,
1
7
9
,
8
3
4
38
,
6
4
4
,
2
5
7
$2
,
9
0
5
,
3
5
4
3,
1
7
5
,
6
0
7
5,
5
9
9
,
7
6
7
5,
4
2
3
,
5
5
1
8,
1
5
4
,
5
0
7
11
,
9
8
4
,
2
2
1
18
,
0
1
2
,
3
1
4
17
,
8
7
2
,
8
1
3
12
,
9
1
1
,
3
1
0
13
,
6
5
8
,
7
1
7
4.
8
7
%
4.
7
8
%
5.
9
4
%
5.
1
8
%
5.
6
8
%
5.
7
7
%
5.
5
9
%
4.
9
9
%
5.
1
8
%
N/
A
$
1,295 1,326 1,765 1,661 1,817 1,843 1,827 1,668 1,777 N/A 5.27% 5.65% 6.77% 5.91% 6.41% 6.54% 6.62% 5.95% 5.99% N/A $ 1,401 1,568 2,011 1,896 2,054 2,087 2,162 1,987 2,055 N/A
NO
T
E
S
:
(a
)
In
c
l
u
d
e
s
go
v
e
n
u
n
e
n
t
a
l
ac
t
i
v
i
t
i
e
s
an
d
bu
s
i
n
e
s
s
-
t
y
p
e
ac
t
i
v
i
t
i
e
s
.
(b
)
Se
e
Ta
b
l
e
II
fo
r
pe
r
s
o
n
a
l
in
c
o
m
e
an
d
po
p
u
l
a
t
i
o
n
da
t
a
.
De
t
a
i
l
s
re
g
a
r
d
i
n
g
th
e
Co
u
n
t
y
'
s
ou
t
s
t
a
n
d
i
n
g
de
b
t
ca
n
be
fo
u
n
d
in
th
e
no
t
e
s
to
th
e
ba
s
i
c
fi
n
a
n
c
i
a
l
st
a
t
e
m
e
n
t
s
.
Un
a
u
d
i
t
e
d
-
se
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.
Table 9
COUNTY OF HA WAI'I
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Debt Percent of
Applicable to Net Taxable
Fiscal Legal Debt Property Per
Year Margin (a) Value (b) Capita (c)
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% 1,654
2014 298,709,020 1.3% N/A
NOTES:
(a) See Table 10 for debt applicable to legal debt margin.
(b) See Table 5 for net taxable property values.
(c) See Table II 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.
-131
Table 10
CO
U
N
T
Y
OF
HA
W
AI
'
!
Le
g
a
l
De
b
t
Ma
r
g
i
n
In
f
o
r
m
a
t
i
o
n
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
(A
m
o
u
n
t
s
in
th
o
u
s
a
n
d
s
)
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
2013
De
b
t
li
m
i
t
(a
)
$2
,
1
8
0
,
0
9
4
$2
,
4
7
1
,
7
0
5
$3
,
4
0
6
,
1
4
4
$3
,
9
4
0
,
4
7
6
$4
,
4
2
5
,
8
4
5
$4
,
2
2
2
,
7
1
4
$3
,
8
2
7
,
8
2
6
$3
,
6
6
0
,
9
1
6
$ 3,529,135 $ 3,531,341
De
b
t
ap
p
l
i
c
a
b
l
e
to
li
m
i
t
19
5
,
1
9
8
20
5
,
2
2
0
28
1
,
8
3
7
26
5
,
4
3
1
29
6
,
5
3
6
27
7
,
4
8
2
31
5
,
6
1
6
31
7
,
7
0
0
315,677 298,709
Le
g
a
l
de
b
t
ma
r
g
i
n
(b
)
$1
,
9
8
4
,
8
9
6
$2
,
2
6
6
,
4
8
5
$3
,
1
2
4
,
3
0
7
$3
,
6
7
5
,
0
4
5
$4
,
1
2
9
,
3
0
9
$3
,
9
4
5
,
2
3
2
$3
,
5
1
2
,
2
1
0
$3
,
3
4
3
,
2
1
6
$ 3,213,458 $ 3,232,632
De
b
t
ap
p
l
i
c
a
b
l
e
to
th
e
li
m
i
t
as
a
pe
r
c
e
n
t
a
g
e
of
de
b
t
li
m
i
t
8.
9
5
%
8.
3
0
%
8.
2
7
%
6.
7
4
%
6.
7
0
%
6.
5
7
%
8.
2
5
%
8.
6
8
%
8.94% 8.46%
'-w
N
NO
T
E
S
:
(a
)
St
a
t
e
fi
n
a
n
c
e
st
a
t
u
t
e
s
li
m
i
t
th
e
Co
u
n
t
y
'
s
ou
t
s
t
a
n
d
i
n
g
ge
n
e
r
a
l
de
b
t
to
no
mo
r
e
th
a
n
15
pe
r
c
e
n
t
of
th
e
ne
t
as
s
e
s
s
e
d
va
l
u
e
of
pr
o
p
e
r
t
y
.
Se
e
Ta
b
l
e
5
fo
r
ne
t
as
s
e
s
s
e
d
value of property.
(b
)
Th
e
le
g
a
l
de
b
t
ma
r
g
i
n
is
th
e
Co
u
n
t
y
'
s
av
a
i
l
a
b
l
e
bo
r
r
o
w
i
n
g
au
t
h
o
r
i
t
y
un
d
e
r
st
a
t
e
fi
n
a
n
c
e
st
a
t
u
t
e
s
an
d
is
ca
l
c
u
l
a
t
e
d
by
su
b
t
r
a
c
t
i
n
g
th
e
ne
t
de
b
t
ap
p
l
i
c
a
b
l
e
to
th
e
legal debt
li
m
i
t
fr
o
m
th
e
le
g
a
l
de
b
t
li
m
i
t
.
Le
g
a
l
De
b
t
Ma
r
g
i
n
Ca
l
c
u
l
a
t
i
o
n
for Fiscal Year 2014
Ne
t
as
s
e
s
s
e
d
va
l
u
e
$23,542,276
De
b
t
li
m
i
t
(1
5
%
of
ne
t
as
s
e
s
s
e
d
value) $ 3,531,341
De
b
t
ap
p
l
i
c
a
b
l
e
to
li
m
i
t
298,709
Le
g
a
l
de
b
t
ma
r
g
i
n
$ 3,232,632
Un
a
u
d
i
t
e
d
~
se
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.
2014
Table 11
COUNTY OF HAW AI'I
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal *Personal *Per
Year *Resident Income Capita
Ended Population (thousands Personal School Unemployment
June 30, as of July I of dollars) Income Enrollment Rate
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%
2013 190,821 $ 6,544,583 $ 34,297 n/a 6.6%
* Amounts reflect subsequent adjustments
Source: County of Hawai' i, Department of Research and Development, Bureau of Economic Analysis
and State of Hawaii Department of Labor
Unaudited -see accompanying independent auditors' report.
-133
Table 12
COUNTY OF HAW AI'!
Principal Employers, County of Hawaii
June 30, 2014 and 2005
2014
Percentage
of Total County
Employer Employees Rank Employment
State ofHawai'i 8,229 10.2%
County ofHawai'i 2,657 2 3.3%
United States Government 1,430 3 1.8%
Hilton Waikoloa Village 910 4 1.1%
KTA Super Stores 767 7 1.0%
Walmart 660 8 0.8%
Target Stores 490 10 0.6%
Four Seasons Resort Hualalai (b) 6 (b)
The Fairmont Orchid, Hawai'i 640 9 0.8%
Mauna Kea Beach Hotel 800 5 1.0%
Mauna Lani Bay Hotel
Hapuna Beach Prince Hotel
Total 16,583 20.6%
Total employee count 80,700
NOTES:
(a) Data for Fiscal Year 2005 is unavailable.
(b) Exact employee count is unavailable.
Source: County ofHawai'i, Department of Research and Development and
Department of Finance
State of Hawaii Department of Labor and Industrial Relations and
Unaudited -see accompanying independent auditors' report.
2004(a)
Percentage
ofTotal County
Employees Rank Employment
7,608 10.0%
2,291 2 3.0%
1,221 3 1.6%
1,100 4 1.4%
785 5 1.0%
557 8 0.7%
600 6 0.8%
556 9 0.7%
580 7 0.8%
542 10 0.7%
15,840 20.7%
76,200
-134
Table l3
CO
U
N
T
Y
OF
HA
W
AI
'
!
Fu
l
l
-
T
i
m
e
Eq
u
i
v
a
l
e
n
t
Co
u
n
t
y
Go
v
e
r
n
m
e
n
t
Em
p
l
o
y
e
e
s
by
Fu
n
c
t
i
o
n
-w
<A
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
20
1
2
20
1
3
2014
Fu
n
c
t
i
o
n
Ge
n
e
r
a
l
go
v
e
r
n
m
e
n
t
:
Co
u
n
t
y
Co
u
n
c
i
l
9.
0
0
9.
0
0
9.
0
0
9.
0
0
9.
0
0
9.0
0
9.
0
0
9.
0
0
9.
0
0
9.00
Co
u
n
t
y
Cl
e
r
k
38
.
0
0
54
.
5
0
54
.
0
0
68
.
0
0
55
.
4
8
56
.
0
8
53
.
0
0
54
.
0
0
52
.
5
0
46.40
Le
g
i
s
l
a
t
i
v
e
Au
d
i
t
o
r
5.
0
0
5.
0
0
5.
0
0
4.
7
5
3.
7
5
5.00
Ma
y
o
r
21
.
5
8
21
.
7
0
20
.
6
8
25
.
1
7
22
.
4
9
19
.
0
0
21
.
9
9
18
.
5
0
16
.
0
0
18.75
Co
r
p
o
r
a
t
i
o
n
Co
u
n
s
e
l
41
.
0
0
39
.
0
0
39
.
9
8
33
.
0
0
30
.
0
0
32
.
0
0
29
.
0
0
29
.
0
0
27
.
0
0
28.00
Fin
a
n
c
e
88
.
0
0
91
.
0
0
94
.
4
9
10
2
.
8
9
12
8
.
4
4
12
3
.
8
9
12
1
.
8
9
12
3
.
3
5
13
1
.
3
7
134.98
Hu
m
a
n
Re
s
o
u
r
c
e
s
26
.
0
0
24
.
5
0
27
.
4
6
28
.
9
8
28
.
9
6
27
.
9
8
25
.
4
9
25
.
4
8
24
.
0
0
24.49
Pla
n
n
i
n
g
31
.
5
0
35
.
0
0
36
.
0
0
47
.
0
0
48
.
0
0
49
.
0
0
49
.
4
9
48
.
0
0
50
.
0
0
51.00
Re
s
e
a
r
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h
&
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v
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o
p
m
e
n
t
13
.
0
0
13
.
2
0
14
.
4
8
15
.
0
0
15
.
0
0
14
.
0
0
14
.
0
0
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.
0
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.
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0
11.49
In
f
o
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m
a
t
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o
n
Te
c
h
n
o
l
o
g
y
14
.
0
0
17
.
0
0
17
.
0
0
17
.
0
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16
.
0
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15
.
4
8
16
.
0
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16
.
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16
.
0
0
22.00
Pu
b
l
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c
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r
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s
Ad
m
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n
&
Bu
i
l
d
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g
12
1
.
0
0
12
3
.
4
0
14
1
.
9
7
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.
3
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17
0
.
4
4
16
2
.
9
9
15
8
.
8
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5
.
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.
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0
162.49
Pu
b
l
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c
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y
:
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l
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c
e
52
0
.
8
0
53
6
.
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5
.
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3
57
2
.
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1
55
3
.
3
7
55
8
.
3
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56
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.
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9
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.
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.
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567.23
Fi
r
e
34
6
.
2
3
34
0
.
2
0
36
3
.
7
1
42
4
.
0
7
41
2
.
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5
41
1
.
5
3
41
4
.
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1
.
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429.57
Liq
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r
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n
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r
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I 1.0
0
13
.
0
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12
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0
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4
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14
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15
.
0
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.
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14.00
Ci
v
i
l
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e
7.
0
0
6.
0
0
5.
0
0
5.
0
0
7.
0
0
7.
0
0
7.
0
0
7.
0
0
7.00 7.00
Pr
o
s
e
c
u
t
i
n
g
At
t
o
r
n
e
y
83
.
0
0
86
.
5
0
93
.
0
0
96
.
4
9
10
3
.
0
0
98
.
2
4
99
.
0
0
91
.
4
9
99
.
4
9
98.97
Hi
g
h
w
a
y
s
an
d
St
r
e
e
t
s
:
Ma
s
s
Tr
a
n
s
i
t
7.
0
0
6.
0
0
5.
0
0
7.
0
0
6.
0
0
7.
0
0
7.
0
0
7.
0
0
8.00 11.00
Tr
a
f
f
i
c
an
d
Hi
g
h
w
a
y
s
15
1
.
0
0
16
8
.
0
0
16
9
.
9
8
18
3
.
4
8
18
2
.
4
8
17
4
.
4
8
17
6
.
4
8
17
8
.
4
8
17
6
.
4
8
173.48
Sa
n
i
t
a
t
i
o
n
:
Ad
m
i
n
i
s
t
r
a
t
i
o
n
18
.
0
0
19
.
5
0
19
.
4
9
19
.
9
8
19
.
4
9
16
.
9
8
18
.
4
9
17
.
0
0
17
.
0
0
19.49
Se
w
e
r
40
.
0
0
38
.
0
0
32
.
9
7
37
.
4
9
41
.
4
7
44
.
9
8
47
.
4
9
47
.
4
9
46
.
0
0
44.49
Ve
h
i
c
l
e
Di
s
p
o
s
a
l
1.
0
0
1.
0
0
3.0
0
3.
0
0
2.
0
0
2.
0
0
2.
0
0
2.
0
0
4.00 1.00
So
l
i
d
Wa
s
t
e
57
.
8
0
69
.
0
0
86
.
4
9
87
.
4
9
93
.
4
9
93
.
0
0
95
.
0
0
99
.
0
0
98
.
0
0
103.50
He
a
l
t
h
,
Ed
u
c
a
t
i
o
n
an
d
We
l
f
a
r
e
:
Ho
u
s
i
n
g
43
.
4
8
39
.
5
0
43
.
9
7
46
.
9
5
44
.
9
5
47
.
4
4
47
.
4
8
43
.
4
8
41
.
0
0
43.00
Ag
i
n
g
10
.
0
0
12
.
5
0
13
.
0
0
12
.
0
0
12
.
0
0
11
.
0
0
12
.
0
0
13
.
0
0
11
.
0
0
12.00
Cu
l
t
u
r
e
an
d
Re
c
r
e
a
t
i
o
n
38
6
.
4
8
43
4
.
9
0
40
2
.
4
3
39
0
.
1
1
39
1
.
4
5
37
9
.
5
0
38
0
.
7
4
37
0
.
1
5
37
0
.
8
7
352.14
To
t
a
l
2,
0
8
5
.
8
7
2,
1
9
8
.
6
0
2,
2
4
0
.
3
3
2,
4
1
2
.
4
6
2,
4
1
1
.
5
6
2,
3
7
9
.
8
9
2,
3
9
0
.
4
5
2,
3
1
9
.
1
8
2,
3
5
7
.
5
1
2,390.47
So
u
r
c
e
:
Co
u
n
t
y
of
H
a
w
a
i
'
i
,
De
p
a
r
t
m
e
n
t
of
Fi
n
a
n
c
e
Un
a
u
d
i
t
e
d
~s
e
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.
Table 14
CO
U
N
T
Y
OF
HA
W
AI
'
!
Op
e
r
a
t
i
n
g
In
d
i
c
a
t
o
r
s
by
Fu
n
c
t
i
o
n
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
Fu
n
c
t
i
o
n
20
0
5
20
0
6
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
2012 2013 2014
-"'
a
,
Pu
b
l
i
c
Sa
f
e
t
y
:
Po
l
i
c
e
:
DU
I
ar
r
e
s
t
s
Tr
a
f
f
i
c
ci
t
a
t
i
o
n
s
is
s
u
e
d
Fir
e
:
Fi
r
e
re
s
p
o
n
s
e
s
Em
e
r
g
e
n
c
y
me
d
i
c
a
l
/
r
e
s
c
u
e
re
s
p
o
n
s
e
s
In
s
p
e
c
t
i
o
n
s
-
Oc
c
u
p
a
n
c
y
/
F
i
r
e
Pr
o
t
e
c
t
i
v
e
Eq
u
i
p
m
e
n
t
Sa
n
i
t
a
t
i
o
n
:
Re
f
u
s
e
di
s
p
o
s
e
d
(t
o
n
s
pe
r
ye
a
r
)
Hi
g
h
w
a
y
s
an
d
St
r
e
e
t
s
:
In
-
h
o
u
s
e
st
r
e
e
t
re
s
u
r
f
a
c
i
n
g
(m
i
l
e
s
)
Pa
r
k
s
an
d
Re
c
r
e
a
t
i
o
n
:
Pa
v
i
l
i
o
n
pe
r
m
i
t
s
is
s
u
e
d
Ca
m
p
i
n
g
pe
r
m
i
t
s
is
s
u
e
d
Ro
u
n
d
s
of
go
l
f
Zo
o
at
t
e
n
d
a
n
c
e
Tr
a
n
s
i
t
:
Bu
s
pa
s
s
e
n
g
e
r
s
Pu
b
l
i
c
Wo
r
k
s
:
Bu
i
l
d
i
n
g
pe
r
m
i
t
s
is
s
u
e
d
El
e
c
t
r
i
c
a
l
pe
r
m
i
t
s
is
s
u
e
d
Plu
m
b
i
n
g
pe
r
m
i
t
s
is
s
u
e
d
Si
g
n
pe
r
m
i
t
s
is
s
u
e
d
96
4
51
,
8
1
8
88
8
13
,
6
7
1
1,
8
4
3
22
5
,
0
5
1
42
1,
9
0
8
4,
7
6
5
79
,
1
0
1
16
3
,
1
7
6
N/
A
5,
3
5
0
4,
7
5
0
3,
8
8
8
63
1,
1
6
3
54
,
4
3
5
89
7
14
,
9
4
5
2,
1
3
1
22
2
,
9
4
5
15
1,
8
8
8
5,
1
4
6
74
,
6
7
7
17
1
,
9
5
8
71
1
,
6
0
8
5,
8
8
3
5,
0
9
7
4,
5
5
7
50
1,
3
5
4
54
,
6
0
6
1,
0
9
5
15
,
5
0
2
1,
9
5
8
22
3
,
1
4
4
33
1,
7
4
4
5,
2
0
0
82
,
1
8
2
17
2
,
3
1
5
72
7
,
6
7
7
5,
1
6
5
5,
0
7
2
4,
3
6
8
51
1,
3
9
7
62
,
7
3
6
89
2
16
,
0
9
8
1,
8
5
8
21
0
,
1
9
9
26
2,
0
5
5
3,
8
7
0
76
,
6
4
8
16
3
,
6
0
1
82
1
,
3
5
9
4,
5
0
7
4,
5
6
9
3,
6
2
2
75
1,
3
9
5
66
,
4
6
1
75
1
15
,
0
9
9
1,
4
7
9
17
2
,
4
3
1
27
2,
3
1
0
3,
9
9
8
80
,
2
2
9
18
2
,
2
8
6
90
8
,
6
5
1
3,
9
2
9
3,
8
6
9
2,
9
8
3
62
1,
4
5
2
63
,
8
8
3
88
9
15
,
3
0
8
1,
5
7
9
15
4
,
9
1
4
23
2,
3
4
0
4,
2
9
0
80
,
4
0
7
17
2
,
7
3
7
1,
0
6
0
,
0
5
7
3,
2
3
4
3,
6
0
2
2,
6
3
8
62
1,
4
6
8
61
,
9
4
7
73
1
15
,
7
2
6
3,
0
2
1
16
6
,
4
5
5
18
4,
6
6
7
4,
0
1
9
83
,
3
5
8
17
2
,
6
7
7
1,
1
4
9
,
0
4
2
3,
0
3
9
3,
8
2
1
2,
0
7
1
58
1,403 60,967 684 16,361 2,050 152,949 20 2,805 4,450 72,162 213,537 1,315,222 3,258 4,080 1,749 55 1,176 49,292 654 16,454 1,463 153,581 20 2,775 5,175 71,352 245,715 1,269,550 4,754 5,137 2,001 52 1,351 63,921 671 15,968 1,687 166,890 17 2,708 4,261 71,568 220,323 920,280 4,797 5,313 1,664 57
So
u
r
c
e
:
Co
u
n
t
y
of
H
a
w
a
i
<
i
,
In
d
i
v
i
d
u
a
l
De
p
a
r
t
m
e
n
t
s
Un
a
u
d
i
t
e
d
-
se
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.
Table 15
CO
U
N
T
Y
OF
H
A
W
A
I
'
I
Ca
p
i
t
a
l
As
s
e
t
St
a
t
i
s
t
i
c
s
by
Fu
n
c
t
i
o
n
s
La
s
t
Te
n
Fi
s
c
a
l
Ye
a
r
s
Fu
n
c
t
i
o
n
20
0
5
20
0
6
-
-
20
0
7
20
0
8
20
0
9
20
1
0
20
1
1
2012 2013 2014
-w
--
-
1
Pu
b
l
i
c
Sa
f
e
t
y
:
Po
l
i
c
e
:
St
a
t
i
o
n
s
Su
b
s
t
a
t
i
o
n
s
Fi
r
e
st
a
t
i
o
n
s
Hi
g
h
w
a
y
s
an
d
St
r
e
e
t
s
:
Co
u
n
t
y
st
r
e
e
t
s
(m
i
l
e
s
)
St
r
e
e
t
l
i
g
h
t
s
Pa
r
k
s
an
d
Re
c
r
e
a
t
i
o
n
:
Pa
r
k
s
Gy
m
s
an
d
re
c
r
e
a
t
i
o
n
ce
n
t
e
r
s
Sa
n
i
t
a
t
i
o
n
:
Sa
n
i
t
a
r
y
se
w
e
r
s
(m
i
l
e
s
)
*G
I
S
da
t
a
b
a
s
e
uti
l
i
w
:
l
be
g
i
n
n
i
n
g
FY
20
0
8
8
13
20
90
3
9,0
1
7
12
1
38
53
8
13
20
90
7
9,0
2
7
12
2
38
53
8
13
20
92
7
9,2
4
6
12
3
38
58
8
10
20
94
2
9,3
0
8
12
3
38
10
0
*
8
10
20
94
3
9,4
0
4
14
3
61
10
0
*
8
10
20
94
4
9,
5
9
2
14
3
61
Il
l
*
8
10
20
94
6
9,8
6
4
14
3
61
11
1
*
8 10 20 954 9,883 144 62 112* 8 8 20 945 9,939 145 62 112' 8 8 21 961 10,165 145 62 105*
So
u
r
c
e
:
Co
u
n
t
y
of
H
a
w
a
i
'
i
,
De
p
a
r
t
m
e
n
t
of
Re
s
e
a
r
c
h
an
d
De
v
e
l
o
p
m
e
n
t
Un
a
u
d
i
t
e
d
-se
e
ac
c
o
m
p
a
n
y
i
n
g
in
d
e
p
e
n
d
e
n
t
au
d
i
t
o
r
s
'
re
p
o
r
t
.