In order to carry out its assigned functions and responsibilities, the department is organized into five divisions; namely, accounts, budget, real property tax, purchasing and treasury. Each division is assigned the following responsibilities:

The Accounts Division is responsible for processing payments for all county obligations and preparing the pension and payroll for all county employees. It maintains the financial control records of the county and provides reports to the Mayor, Council, and interested persons and agencies on a monthly and/or annual basis. Accounts maintains the inventory records of county property and is responsible for disposing of all surplus assets. This division also provides administrative support to the Pension Board.

The Budget Division plans, directs and coordinates the formulation, preparation, execution, review and analyses of the county’s operating budget and operating program. It also monitors budget appropriations and actual expenditures to ensure compliance with the law. The division also advises the Director of Finance and other administration officials on budgetary and long-range planning matters.

The Purchasing Division provides a centralized purchasing function to procure services, supplies, materials and equipment in support of all County agencies and programs. It insures compliance in all purchasing laws and regulations and promotes economies in the purchase of goods and services. Completes small purchase procedures and conducts competitive bids and requests for proposals for all competitive purchases with the exception of Public Works construction projects and the Department of Water Supply. Solicits statements of qualifications and expressions of interest from providers of professional services. The Division also audits all contracts, sole source procurements and emergency purchases for compliance with the new procurement law. Supports the Standardization Committee.

The Real Property Tax Division is the Finance Department’s largest division, consisting of four (4) branches; Appraisal, Clerical, Tax Mapping, and Collections. The main office is located in Hilo and a full-service satellite office is located in Kona. The division is responsible for assessing all real property situated in the County of Hawaii in a uniform and equitable manner and collects real property taxes as assessed. The division also provides administrative and clerical support to the Tax Board of Review.

The Treasury Division is responsible for custody of cash on hand and in banks and of pledged securities. It also manages the investment program of the county. By keeping 99% of all funds invested at all times, this division maximizes the interest earned annually for the county. Treasury issues vehicle registrations and collects the appropriate fees and taxes. Dog and bicycle registrations and business licenses are also issued. Additionally, collection of improvement district assessments and collection records are within the jurisdiction of Treasury.

Deanna Sako became Controller in March 2001, after one year as accountant for the Department of Parks and Recreation. She graduated with a bachelor’s degree from Wartburg College with majors in Computer Science and Accounting. She received her Master of Accounting Science degree from the University of Illinois. Her experience before entering County government included 12 years of auditing for Deloitte & Touche LLP in Honolulu, Maui and Hilo. Deanna participated in the County of Hawaii and other county government audits for many of those years.

Gary Takamura, a native of Maui, is the Budget Administrator, head of the Budget Division. He received his Bachelor of Business Administration degree in Finance and Accounting from the University of Hawaii, Manoa Campus. Prior to his present position, he served as the Controller for the County of Hawaii. His experience before entering county government includes management and accounting positions with the Hilo Coast Processing Company, Honiron and C. Brewer and Co., Ltd. in Honolulu.

Bill Gray, a native of California, has served as the Purchasing Agent, head of the Purchasing Division, since 1982. He received his Bachelor of Science degree in Business Management at California State Polytechnic University. Prior to joining the county government, he held positions with IBM, United States Steel, and the Kona Village Resort.

Gary Kiyota, a native of Oahu, has served as the Real Property Tax Administrator, head of the Real Property Tax Division, since 1981. He graduated from the University of Hawaii, Manoa Campus. He has also completed several appraisal courses at the University of San Francisco. Prior to his joining the Real Property Tax Office, he was a member of the Hawaii County Police Department.

Michael Okumoto became County Treasurer in April 2001. He received his MBA from the University of Wyoming. Prior to joining the County, Michael worked at Bank of Hawaii for over 20 years. He served as Branch Manager for the Hilo downtown office and, most recently, as the Business Relationship Officer at Kaiko’o Branch.

The Department is authorized 87 permanent positions. Distribution and type of positions are listed as follows:

During the 2001-2002 Fiscal Year, the department was initially authorized the following budget allotments:

The Department of Finance also oversees the allotment for debt service, pension and retirement contributions and the health fund. Listed as Miscellaneous Accounts, the net budget for these items totaled $45,003,147 for Fiscal Year 2001-2002.

During 2001-2002, the department participated in, implemented and/or accomplished the following:

• The Director of Finance initiated a comprehensive review and overhaul of the real property tax system. A discussion group with members from various departments began with a broad examination of the revenues generated by real property taxes and the services provided to citizens. The first recommendation of the committee was to increase the minimum tax. In January the County Council passed a bill increasing the minimum tax for many taxpayers. The group has subsequently focused its attention on the real property tax agricultural programs. Recommendations for changes will be submitted to Council early in FY 2002-03. Additional reviews will follow.

• The department is spearheading the project for acquiring new enterprise software for the County. The new system will include all financial systems, purchasing, human resources and possibly some other specialized functions. It will allow for transition from the County’s current Wang system, and will provide for future integration with new technologies. The selection committee began meeting in October 2001 and is currently in the process of completing a needs assessment and developing a request for proposals to be issued in the fall of 2002.

• The department formed a Land Management Committee with members from various departments including Planning, Public Works, Parks & Recreation and Corporation Counsel, for the purpose of making decisions regarding County properties. The initial focus of the group has been the Hamakua lands deeded to the County by Hamakua Sugar Company in settlement of real property taxes. The department obtained Council authorization to dispose of the properties by sale, trade or lease. The committee has made site visits, initiated title searches and reviewed many of the complex issues surrounding disposition of the properties. Properties that can be sold "as-is" are currently being appraised. The department also initiated sales of the County’s property in the Hilo Lagoon building.

• The Accounts Division staff were actively involved in developing the needs for the new financial software. Specific needs assessments for Payroll, General Ledger, Accounts Payable, Fixed Assets, Inventory and Financial Reporting were initiated during the year.

• Conversion of analog cellular telephones to digital was completed in January 2002. Over 100 phones were converted countywide.

• The Budget Division continues its efforts to streamline the budget process by enabling departments and agencies to prepare and transmit a number of budget forms, worksheets and documents electronically.

• Purchasing staff attended a half-day training session by Derek MacFarland of RFP-DEPOT concerning the possible use of a nationwide Internet quote/bid listing system. No determination has been made as to whether or not this particular system will be utilized.

• A training session was held for all departments and agencies in June. Topics included update of procurement legislation and status of the procurement card project; purchasing manual updates; revised contract and change order/supplemental agreement routing slips; standardized procedures; and handling of Treasury receipts.

• Three bond issues were closed during FY 2002. $23 million general obligation bonds were issued to primarily finance a police radio system and Water Supply projects. A $1.8 million issue made to the U.S. Department of Agriculture provided financing for the construction of a police detention facility. Lastly, a refunding (refinancing) of Improvement District #17, Kaloko Subdivision bonds, was made to take advantage of the lower interest rates.

• Our cash management system was improved by converting our primary checking account into an interest-bearing account. Liquidity became easier to manage without sacrificing yield. Also, bond monies were placed in money market mutual funds investing in short term treasury securities to simplify arbitrage calculations.

• The division moved to a new Hilo office in the Aupuni Center, which is across the street from its former location.

• Information and forms on vehicle registration were placed on the County’s website to provide greater access and assistance to the public.

Two (2) non-judicial tax foreclosure sales were held during Fiscal Year 2001-2002. There were 66 properties sold on December 4, 2001; and the total amount of delinquent taxes, penalties, and interest collected was $57,553.34. Twenty-seven properties were sold on May 21, 2002; and the total amount of delinquent taxes, penalties, and interest collected was $179,162.66.

The Pension Board, established by the Hawaii County Charter, is comprised of five members appointed to staggered five-year terms. The Board assumes the duties and functions of the Pension Board of the county and the board of trustees of the policemen, firemen and bandsmen, as provided by law. The County Clerk and the Director of Finance serve ex-officio as the secretary and treasurer, respectively.

• The members of the Tax Board of Review would like to extend grateful appreciation to Brian Nakashima who made significant contributions in the appeal process and served faithfully in his capacity as a board member for the last five years. The members of the board are also pleased with the initiatives that were started four years ago to improve interaction with staff members from the Real Property Tax Division. Improvements in the appeal-hearing process for the taxpayer/appellant involved were also initiated. The board members are appreciative of the legal assistance provided by staff attorneys from the Office of the Corporation Counsel. The members are extremely pleased with the full-time secretarial support provided to the board and they hope that this type of clerical support will continue in the future. The board enjoyed another productive year by scheduling and disposing of all tax appeal cases filed with the board.

Appeal counts by zone are listed below:

Fiscal Year 2001-2002

Where it went…