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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. - I ­ 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. -2­ 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 - 3 ­ 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. -4­ 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 - 5 ­ 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 -6­ 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 -7­ 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 - 8 ­ 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 - 9 ­ 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 -10­ 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. -11 ­ This page intentionally left blank. -12­ 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 -13­ 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 -14­ 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 -15­ 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. -16­ 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. -41 ­ 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 -43­ 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. -44­ 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. -45­ 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 -47­ 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. -48 ­ 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. -50­ 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 -51 ­ 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. -55 ­ 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 -56­ 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 -57­ 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. -58 ­ 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. -59­ 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 -60­ 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 -61 ­ 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. -62­ 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 -63 ­ 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. -64­ 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 -65­ 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 -66­ 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 -67­ 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 -68 ­ 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 -69­ 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. -70­ 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 -71 ­ 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. -72­ 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 -74­ 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. -75 ­ 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 -77­ 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 -82­ 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 -86­ 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. This page intentionally left blank. -89­ 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 -92­ This page intentionally left blank. -93 ­ 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 This page intentionally left blank. -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 Co m p o n e n t 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 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 7 4 , 5 5 9 $4 1 9 , 6 1 5 , 4 7 9 $4 6 9 , 2 3 5 , 8 8 1 $5 1 4 , 3 0 9 , 2 3 8 $5 9 4 , 3 8 4 , 5 2 4 $699,326,156 $734,889,023 Re s t r i c t e d 41 , 9 5 0 , 2 6 2 44 , 7 3 7 , 5 8 8 54 , 8 5 7 , 0 2 3 66 , 9 7 7 , 9 3 5 63 , 4 0 8 , 3 7 9 43 , 9 5 8 , 6 6 0 51 , 8 4 0 , 6 9 7 48,360,223 64,437,707 89,620,936 Un r e s t r i c t e d (1 1 , 7 4 1 , 7 4 3 ) 8, 8 8 5 91 1 21 , 3 5 0 09 1 27 , 3 2 9 , 1 0 4 42 , 4 5 7 , 1 3 2 37 , 6 2 3 , 9 3 7 40 , 2 8 7 , 0 4 6 39,340,897 181,055 (18,007,624) To t a l go v e r n m e n t a l ac t i v i t i e s ne t po s i t i o n _$ 3 9 4 , 8 7 0 , 8 9 6 $4 4 0 , 4 8 4 , 7 9 5 _j 4 7 0 , 9 9 6 , 7 4 9 $5 1 3 , 4 8 1 , 5 9 8 $5 2 5 , > ! 8 0 , 9 9 0 $5 5 0 , § 1 8 , 4 78 _1 ; 6 0 6 , 4 3 6 , 9 8 1 $6 8 2 , 0 8 5 , 6 4 4 $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 e s t m e n t in ca p i t a 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 4 3 18 4 , 9 1 4 18 5 , 0 8 7 185,148 ' Un r e s t r i c t e d 85 0 , 9 6 2 81 3 , 4 3 1 63 6 , 7 5 6 60 8 , 1 9 5 60 9 , 7 9 8 49 7 , 4 6 6 44 9 , 5 8 1 455 918 1,045,190 1,093,750 .... . . . . . . To t a l bu s i n e s s · t y p e ac t i v i t i e s ne t JX > S i t i o n $ 1, 3 5 8 , 9 2 9 $ 1, 3 1 3 , 7 6 2 $ 1, 1 3 0 , 9 9 7 __ L _ L Q \ > 9 , 9 7 1 _$ _ 1 ,0 9 9 , 5 6 8 $ 98 5 , 6 2 4 $ 94 3 , 6 3 4 _j 956,914 $-1,360,445 _j_ 1,462,599 ~ \D Pr i m a r y go v e r n m e n t 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 , 9 8 8 , 1 7 7 $3 87 , 1 7 8 , 8 3 0 $3 9 5 , 1 0 0 , 0 4 4 $4 1 9 , 4 8 1 , 9 8 3 $4 1 9 , 9 2 0 , 6 0 6 $4 6 9 , 5 3 9 , 1 2 5 $5 1 4 , 6 1 8 , 2 0 4 $5 9 4 , 7 0 0 , 3 7 2 $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 , 0 2 2 44 , 1 4 3 , 5 7 4 52 , 0 2 5 , 7 8 4 48,545,371 64,437,707 89,620,936 Un r e s t r i c t e d (1 0 , 8 9 0 , 7 8 1 ) 9, 6 9 9 , 3 4 2 21 , 9 8 6 , 8 4 7 27 , 9 3 7 , 2 9 9 43 , 0 6 6 , 9 3 0 38 , 1 2 1 , 4 0 3 40 , 7 3 6 , 6 2 7 39,796,815 1,226,245 (16,913,874) To t a l pr i m a r y go v e r n m e n t ne t po s i t i o n $3 9 6 , 2 2 9 , 8 2 5 $4 4 1 , 7 9 8 , 5 5 7 $4 7 2 , 1 2 7 , 7 4 6 _j _ 5 1 4 , 5 8 1 , 5 6 9 ~2 6 , 5 8 0 , 5 5 8 $5 5 1 , 8 0 4 , 1 0 2 $6 0 7 , 3 8 0 , 6 1 5 $6 8 3 , 0 4 2 , 5 5 8 $765 305,363 $807,964,934 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 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 $ 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 , 9 7 8 98 , 4 7 7 , 8 1 4 12 3 , 6 7 6 , 3 0 4 16 7 , 3 9 7 , 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 i 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 i 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 2 7 15 2 , 2 8 8 , 9 7 9 151,975,049 163,889,113 Hi g h w a y s an d st r e e t s 20 , 8 5 7 , 3 4 1 24 , 7 8 3 , 4 7 6 28 , 1 8 5 , 9 6 8 33 , 5 7 7 , 7 0 7 36 , 4 6 6 , 5 4 1 38 , 0 7 5 , 8 3 5 34 , 8 1 2 , 1 6 5 42 , 4 6 2 , 2 9 9 42,219,903 38,670,145 He a l t h , ed u c a t i o n an d we l f a r e 21 , 5 0 3 , 6 3 5 20 , 1 8 1 , 6 8 5 23 , 2 0 3 , 8 7 4 14 , 9 8 6 , 9 7 2 33 , 7 8 3 , 2 2 3 30 , 5 2 8 , 9 7 7 30 , 3 3 6 , 4 2 0 28 , 1 2 7 , 6 9 1 28,001,020 28,343,056 Cu l t u r e an d re c r e a t i o n 16 , 1 2 4 , 4 5 7 19 , 4 6 4 , 9 6 2 26 , 9 4 8 , 5 0 1 20 , 4 5 0 , 1 7 2 32 , 6 3 3 . 4 1 8 14 , 7 3 9 , 7 5 5 22 , 1 6 7 , 8 1 8 23 , 4 1 2 , 9 4 8 22,12\,336 25,590,117 Sa n i t a t i o n 26 , 6 6 9 , 6 6 0 27 , 2 6 5 , 5 1 5 42 , 6 8 2 , 2 8 1 41 , 2 5 4 , 7 2 8 40 , 1 9 1 , 7 0 4 27 , 5 2 7 , 8 4 1 35 , 6 0 4 , 3 9 4 35 , 0 4 9 , 5 4 6 38,505,086 48,721,810 In t e r e s t on lo n g - t e r m de b t 8, 7 1 8 , 7 5 8 10 , 1 6 8 , 7 1 0 10 , 3 0 3 , 3 3 2 13 , 1 1 7 , 3 2 5 13 , 9 1 4 , 9 6 9 14 , 1 2 0 , 3 9 8 15 , 1 7 6 , 6 8 2 14 , 5 1 9 , 3 8 2 14,301,921 12,911,436 To t a l go v e r n m e n t a l ac t i v i t i e s ex p e n s e s 23 9 , 5 5 8 , 2 3 7 24 6 , 1 9 5 , 9 4 6 29 5 , 6 8 4 , 1 7 6 32 9 , 6 8 2 , 4 7 3 37 1 , 7 1 4 , 2 2 6 33 8 , 6 6 0 , 5 1 2 34 5 , 5 4 4 , 9 3 4 35 1 , 9 7 6 , 4 4 4 352,740,417 377,573,719 Bu s i n e s s - t y p e ac t i v i t i e s : He a l t h , ed u c a t i o n an d we l f a r e 48 4 , 8 7 9 54 7 , 2 0 1 69 8 , 3 2 9 55 6 , 3 0 4 52 5 , 4 4 9 59 0 , 1 3 1 55 0 , 8 0 1 517,052 496,017 494,722 To t a l bu s i n e s s - t y p e ac t i v i t i e s ex p e n s e s 48 4 , 8 7 9 54 7 , 2 0 1 69 8 , 3 2 9 55 6 , 3 0 4 52 5 , 4 4 9 59 0 , 1 3 1 55 0 , 8 0 1 517,052 496,017 494,722 To t a l pr i m a r y go v e r n m e n t ex p e n s e s $2 4 0 , 0 4 3 , 1 1 6 $ 24 6 , 7 4 3 , 1 4 7 $ 29 6 , 3 8 2 , 5 0 5 --- - ~ - ] 3 0 , 2 3 8 , 7 7 7 $ 372 , 2 3 9 , ~ 6 7 5 $ 33 9 , 2 5 0 , 6 4 3 $ 34 6 , 0 9 5 , 7 3 5 $ 35 2 , 4 9 3 , 4 ? 6 $ 353,236,434 $ 378,068,441 Ne t Ex p e n s e Go v e r n m e n t a l ac t i v i t i e s $( 1 4 1 , 5 8 8 , 1 0 3 ) $( 1 5 4 , 1 6 3 , 9 6 5 ) $( 2 0 9 , 2 7 7 , 6 8 6 ) $( 2 3 1 , 6 8 0 , 18 0 ) $( 2 7 5 , 2 7 9 , 2 4 8 ) $( 2 4 0 , 18 2 , 6 9 8 ) $( 2 2 1 ,8 6 8 , 6 3 0 ) $( 1 8 4 , 5 7 8 , 9 5 8 ) $ ( 1 6 5 , 8 1 4 , 8 9 9 ) $(231,345,717) Bu s i n e s s - t y p e ac t i v i t i e s (3 4 , 0 7 9 ) (6 8 , 0 4 1 ) (2 1 8 , 3 1 6 ) (6 4 , 8 5 4 ) (1 8 , 2 6 4 ) (! 15 , 3 4 7 ) (4 4 , 9 8 7 ) 7,639 59,840 100,415 To t a l pr i m a r y go v e r n m e n t ne t ex p e n s e $( 1 4 1 , 6 2 2 , 1 8 2 ) _K l s 4 , 2 3 2 , o o 6 ) ~ $( 2 0 9 , 4 9 6 , o o 2 t $( 2 3 1 , 7 4 5 , 0 3 4 ) $( 2 7 5 , 2 9 7 , 5 1 2 ) $( 2 4 0 , 2 _ ? 8 , 0 4 5 ) $( 2 2 1 , 9 1 3 , 6 1 7 ) $( 1 8 4 , 5 7 1 , 3 1 9 ) $ ( 1 6 5 , 7 5 5 , 0 5 9 ) $(231,245,302) Co n t i n u e d ne x t pa g e . Ge n e r a l Re v e n u e s an d Ot h e r Ch a n g e s in Ne t Po s i t i o n Table 2 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 re v e n u e s : Pr o p e r t y ta x e s $ 12 9 , 7 7 5 , 4 1 0 $ 15 2 , 1 8 2 , 8 0 6 $1 8 3 , 6 1 1 , 0 5 0 $2 1 0 , 2 1 7 , 6 9 0 $ 22 9 , 2 6 2 , 9 8 0 $ 21 8 , 0 3 7 , 5 6 7 $ 22 5 , 0 5 5 , 0 9 9 $ 20 9 , 8 9 4 , 4 2 7 $200,775,779 $221,260,681 Pu b l i c se r v i c e co m p a n y ta x e s 6, 3 5 1 , 2 7 3 6, 8 1 1 , 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 l i c ut i l i t y fr a n c h i s e ta x e s 6, 0 1 6 , 8 9 0 7, 3 2 8 , 8 8 7 8, 5 2 0 , 1 3 3 9,0 2 6 , 8 4 1 l1 , 1 1 8 , 3 6 5 8, 9 6 3 , 0 4 1 9, 4 1 5 , 6 2 4 11 , 0 6 5 , 1 1 2 11,087,369 10,792,967 Fu e l ta x e s 7, 5 8 0 , 7 4 0 7, 8 5 7 , 3 9 4 8, 4 7 1 , 4 5 3 7, 8 8 7 , 9 9 8 7, 6 6 2 , 1 1 3 7,4 0 5 , 9 9 6 7, 6 0 3 , 5 0 1 8,2 9 3 , 2 0 0 6,352,944 7,373,475 Gr a n t s an d co n t r i b u t i o n s no t re s t r i c t e d to sp e c i f i c pr o g r a m s 16 , 7 3 4 , 8 5 0 18 , 5 1 0 , 2 6 2 18 , 9 9 9 ; 5 % 19 , 3 9 5 , 0 8 9 17 , 8 8 8 , 0 1 9 17 , 5 0 0 , 0 3 8 19 , 5 3 3 , 1 6 5 19 , 0 7 4 , 1 0 5 17,750,132 17,705,917 In v e s t m e n t ea r n i n g s (l o s s ) 2, 9 5 7 , 1 8 8 4, 9 7 6 , 1 7 8 9,7 2 7 , 9 1 1 11 , 4 5 4 , 8 5 0 8, 3 6 9 , 2 2 1 2, 1 8 7 , 2 6 6 60 9 , 6 1 7 230,804 (81,020) 815,606 Ot h e r 3, 6 5 7 , 7 9 4 2, 1 1 0 , 8 5 4 3, 0 6 3 , 4 1 3 7, 8 0 1 , 1 9 4 2, 7 4 9 , 3 3 5 1, 7 7 9 , 2 2 3 5, 9 7 3 , 2 7 5 1, 7 7 3 , 2 5 8 2,320,838 5,574,147 To t a l go v e r n m e n t a l ac t i v i t i e s 17 3 , 0 7 4 , 1 4 5 19 9 , 7 7 7 , 8 6 4 23 9 , 7 8 9 , 6 4 0 __ 2_ Z _ 4 , 1 6 5 , 0 2 9 __ _ _ _ 2 8 7 ,2 7 8 , 6 4 0 26 5 , 5 2 0 , 1 8 6 -~ 7 7 , 4 8 7 , 1 3 3 26 0 , 2 2 7 A 2 1 -~48,972,063 273,903,134 Bu s i n e s s - t y p e ac t i v i t i e s : Ge n e r a l re v e n u e s : In v e s t m e n t ea r n i n g s 13 , 5 8 0 22 , 8 7 4 35 , 5 5 1 33 , 8 2 8 17 , 8 6 1 1, 4 0 3 2, 9 9 7 5,641 1,416 1,739 Ot h e r 342,275 To t a l bu s i n e s s - t y p e ac t i v i t i e s 13 , 5 8 0 22 , 8 7 4 35 , 5 5 1 33 , 8 2 8 17 , 8 6 1 1, 4 0 3 2, 9 9 7 5,641 343,691 1,739 To t a l pr i m a r y go v e r n m e n t $ 17 3 , 0 8 7 , 7 2 5 $ 19 9 , 8 0 0 , 7 3 8 $ 23 9 , 8 2 5 , 1 9 1 $2 7 4 , 1 9 8 , 8 5 7 $ 28 7 , 2 9 6 , 5 0 1 $2 6 5 , 5 2 1 , 5 8 9 $ 27 7 , 4 9 0 , 1 3 0 $ 26 0 , 2 3 3 , 2 6 2 $249,315,754 $ 273,904,873 Ch a n g e s In Ne t Po s i t i o n Go v e r n m e n t a l ac t i v i t i e s $ 31 , 4 8 6 , 0 4 2 $ 45 , 6 1 3 , 8 9 9 $ 30 , 5 1 1 , 9 5 4 $ 42 , 4 8 4 , 8 4 9 $ 11 , 9 9 9 , 3 9 2 $ 25 , 3 3 7 , 4 8 8 $ 55 , 6 1 8 , 5 0 3 $ 75 , 6 4 8 , 6 6 3 $ 83,157,164 $ 42,557,417 Bu s i n e s s - t y p e ac t i v i t i e s (2 0 , 4 9 9 ) (4 5 , 1 6 7 ) (1 8 2 , 7 6 5 ) (3 1 , 0 2 6 ) (4 0 3 ) (! 13 , 9 4 4 ) (4 1 , 9 9 0 ) 13,280 403,531 102,154 To t a l pr i m a r y go v e r n m e n t ch a n g e s in ne t po s i t i o n $ 31 , 4 6 5 , 5 4 3 $ 45 , 5 6 8 , 7 3 2 $ 30 , 3 2 9 , 1 8 9 $ 42 , 4 5 3 , 8 2 3 _$ 11 , 9 9 8 , 9 8 9 __ j _ _ 25 , 2 2 3 , 5 4 4 $ 55 , 5 7 6 , 5 1 3 $ 75 , 6 6 1 , 9 4 3 $ 83,560,695 $ 42,659,571 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 . -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 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 , 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 . 0 5 10 . 8 5 10 . 8 5 10 . 0 5 10 . 0 5 9. 2 5 10 . 8 5 6. 1 5 6. 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 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 Fi s c a l ye a r 20 1 3 to t a l di r e c t ra t e $8 . 3 7 $2 , 9 6 1 , 3 0 9 $ 10 . 0 5 $3 , 4 7 0 , 1 4 8 2, 4 3 1 , 3 1 4 10 . 8 5 1, 0 7 7 , 1 5 3 66 9 , 8 5 0 10 . 8 5 47 7 , 9 8 1 64 8 , 2 7 3 10 . 0 5 76 6 , 0 2 9 47 0 , 9 9 2 10 . 0 5 44 3 , 7 0 2 2, 1 0 5 , 4 8 1 9. 2 5 2, 3 6 5 , 2 4 5 36 , 9 0 2 10 . 8 5 25 5 , 6 0 2 2, 6 4 5 , 1 2 1 6. 1 5 2, 5 3 7 , 1 2 8 11 5 , 3 8 4 6. 1 5 64 , 6 6 2 $1 2 , 0 8 4 , 6 2 6 $1 1 , 4 5 7 , 6 5 0 $ 10 . 0 5 10 . 8 5 10 . 8 5 10 . 0 5 10 . 0 5 9. 2 5 10 . 8 5 6. 1 5 6. 1 5 $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 . Th e Co u n t y Co u n c i l se t s th e ta x ra t e s an n u a l l y . Th e r e ar e no ov e r l a p p i 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 e d re s i d e n t i a l an d un i m p r o v e 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 i e s an d Co l l e c t i o n s La s t Te n Fi s c a l Ye a r s *O u t s t a n d i n g *T o t a l Delinquent *C u r r e n t *C u r r e n t *P e r c e n t *D e l i n q u e n t *T o t a l Co l l e c t i o n s as *O u t s t a n d i n g Taxes as Fi s c a l Ta x Ta x of Le v y Ta x T a x Pe r c e n t of De l i n q u e n t Percent of Ye a r I& Y y Co l l e c t i o n s Co l l e c t e d Co l l e c t i o n s Co l l e c t i o n s Cu r r e n t Le v v Ta x e s Qu r r e n t Levv 20 0 5 $1 2 8 , 8 4 2 , 1 6 1 $1 2 6 , 5 7 4 , 9 2 1 98 % $ 2, 1 5 0 , 7 1 3 $ 12 8 , 7 2 5 , 6 3 4 10 0 % $ 11 6 , 5 2 7 0% 20 0 6 15 0 , 2 9 0 , 8 6 7 14 7 , 7 1 2 , 6 3 0 98 % 2, 4 3 0 , 2 7 7 15 0 , 1 4 2 , 9 0 7 10 0 % 14 7 , 9 6 0 0% 20 0 7 18 1 , 5 3 8 , 3 8 7 17 7 , 3 2 6 , 4 1 8 98 % 3, 9 0 7 , 7 8 5 18 1 , 2 3 4 , 2 0 3 10 0 % 30 4 , 1 8 4 0% -N 20 0 8 20 7 , 8 8 7 , 7 2 8 20 2 , 7 0 2 , 8 5 8 98 % 4, 8 0 9 , 1 6 4 20 7 , 5 1 2 , 0 2 2 10 0 % 37 5 , 7 0 6 0% '- 0 20 0 9 22 6 , 6 3 4 , 2 9 0 21 9 , 4 3 7 , 5 3 1 97 % 6, 5 8 8 , 6 9 4 22 6 , 0 2 6 , 2 2 5 10 0 % 60 8 , 0 6 5 0% 20 1 0 21 5 , 2 5 5 , 3 5 5 20 7 , 5 0 1 , 3 0 7 96 % 6, 9 3 9 , 8 5 9 21 4 , 4 4 1 , 1 6 6 10 0 % 81 4 , 1 8 9 0% 20 1 1 21 5 , 7 1 9 , 1 6 2 20 8 , 1 0 6 , 9 1 8 96 % 6, 2 4 5 , 5 0 5 21 4 , 3 5 2 , 4 2 3 99 % 1, 3 6 6 , 7 3 9 1% 20 1 2 20 4 , 8 7 7 , 5 3 3 19 8 , 2 7 4 , 1 8 6 97 % 4, 5 0 1 , 9 5 6 20 2 , 7 7 6 , 1 4 2 99 % 2, 1 0 1 , 3 9 1 1% 20 1 3 19 7 , 0 2 8 , 7 8 2 19 1 , 1 5 4 , 4 9 1 97 % 2, 8 4 5 , 0 2 2 19 3 , 9 9 9 , 5 1 3 98 % 3, 0 2 9 , 2 6 9 2% 20 1 4 21 7 , 2 6 9 , 8 2 5 21 1 , 7 1 1 , 4 0 7 97 % 21 1 , 7 1 1 , 4 0 7 97 o / o 5, 5 5 8 , 4 1 8 3o/o * Am o u n t s re f l e c t su b s e q u e n t ad j u s t m e n t s 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 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 8 CO U N T Y OF HA W AI ' ! Ra t i o S of Ou t s t a n d i n g De b t by Ty p e 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 , ex c e p t pe r ca p i t a ) Fi s c a l Ye a r 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 St a t e Ob l i g a t i o n Re v o l v i n g Bo n d s ~ Fu n d Lo a n s Ca p i t a l Le a s e s Bu s i n e s s - T y p e Ac t i v i t i e s Bo n d s / N o t e s Pa y a b l e To t a l Pr i m a r y Go v e r n m e n t (a ) Co m p o n e n t Un i t Ge n e r a l St a t e Ob l i g a t i o n Re v o l v i n g Bo n d s Fu n d Lo a n s To t a l Pr i m a r y Go v e r n m e n t Pe r c e n t a g e of Pe r s o n a l Per In c o m e (b ) Ca p i t a (b) Total Primary Government and Component Unit Percentage of Personal Per Income (b2_ Capita (b) ~ w 0 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 20 1 4 $1 8 2 , 1 5 8 , 2 8 5 19 6 , 6 5 2 , 0 0 8 26 9 , 2 8 1 , 3 3 9 25 7 , 0 9 9 , 3 9 9 29 1 , 3 6 3 , 2 1 8 29 4 , 1 6 4 , 5 3 5 30 1 , 5 4 9 , 0 0 5 28 1 , 7 7 3 , 4 9 8 31 3 , 3 2 2 , 4 6 6 29 7 , 0 5 8 , 7 5 0 $2 8 , 7 6 0 , 5 0 4 26 , 4 1 3 , 3 4 2 30 , 2 4 6 , 7 5 1 29 , 3 7 6 , 1 8 6 26 , 6 9 7 , 2 8 8 30 , 4 6 9 , 7 6 7 36 , 5 5 5 , 2 6 4 29 , 0 5 0 , 6 2 6 20 , 8 8 2 , 2 8 3 22 , 9 2 8 , 6 3 8 $3 , 6 4 2 , 9 2 8 2, 8 6 4 , 5 1 5 4, 0 8 5 , 7 3 5 4, 6 0 6 , 5 2 7 4, 1 7 9 , 8 0 5 4, 5 5 2 , 2 9 0 3, 0 5 7 , 0 8 2 3, 8 0 3 , 6 1 8 3, 6 3 2 , 4 2 0 2,3 0 8 , 2 4 1 $ 1, 0 4 1 , 2 8 5 1, 0 1 9 , 3 8 6 99 5 , 8 5 4 97 0 , 8 9 2 94 4 , 1 2 4 91 6 , 1 1 7 88 4 , 2 3 2 85 1 , 3 0 6 1, 2 9 6 , 6 3 3 1, 2 0 8 , 3 0 0 $ 2 1 5 , 6 0 3 , 0 0 2 22 6 , 9 4 9 , 2 5 1 30 4 , 6 0 9 , 6 7 9 29 2 , 0 5 3 , 0 0 4 32 3 , 1 8 4 , 4 3 5 33 0 , 1 0 2 , 7 0 9 34 2 , 0 4 5 , 5 8 3 31 5 , 4 7 9 , 0 4 8 33 9 , 1 3 3 , 8 0 2 32 3 , 5 0 3 , 9 2 9 $1 4 , 6 5 7 , 7 0 8 38 , 3 7 4 , 3 1 2 36 , 7 0 8 , 3 6 8 35 , 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 c h & De v e l 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 12 . 0 0 12 . 0 0 11.49 In f o r m a t i o n Te c h n o l o g y 14 . 0 0 17 . 0 0 17 . 0 0 17 . 0 0 16 . 0 0 15 . 4 8 16 . 0 0 16 . 0 0 16 . 0 0 22.00 Pu b l i c Wo r k s Ad m i n & Bu i l d i n g 12 1 . 0 0 12 3 . 4 0 14 1 . 9 7 16 6 . 3 7 17 0 . 4 4 16 2 . 9 9 15 8 . 8 4 15 5 . 4 8 15 5 . 5 0 162.49 Pu b l i c Sa f e t y : Po l i c e 52 0 . 8 0 53 6 . 2 0 53 5 . 2 3 57 2 . 5 1 55 3 . 3 7 55 8 . 3 2 56 5 . 9 9 54 1 . 2 5 54 8 . 9 8 567.23 Fi r e 34 6 . 2 3 34 0 . 2 0 36 3 . 7 1 42 4 . 0 7 41 2 . 0 5 41 1 . 5 3 41 4 . 0 8 39 1 . 2 8 41 8 . 5 7 429.57 Liq u o r Co n t r o l I 1.0 0 13 . 0 0 12 . 0 0 14 . 4 8 14 . 0 0 14 . 0 0 14 . 0 0 15 . 0 0 14 . 0 0 14.00 Ci v i l De f e n s 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 .