VII. DEPARTMENT OF FINANCE
ROLE AND DUTIES
The Department of Finance, under the Director of
Finance, is a major staff agency under the Mayor. Its significant
functions are financial planning and administration, and its primary
responsibilities are in six areas of control - accounts, budget,
assessment, purchasing, treasury, and centralized data processing.
In order to carry out its assigned functions and
responsibilities, the department is organized into six divisions;
namely, accounts, budget, real property taxation, purchasing,
treasury and data processing. Each division is assigned the following
responsibilities:
Accounts Division
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 county's central supplies
storeroom and inventory records of county property and is responsible
for disposing of all surplus assets. This division also provides
administrative support to the Pension Board.
Budget Division
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.
Data Processing Division
Data Processing Division is responsible for managing
and operating the county's main computer system and its telecommunications
network. The division processes financial applications (payroll/personnel,
accounting, sewer billing, inventory), performs systems analysis
and programming for existing and new computer applications, maintains
data security, provides computer training, and provides support
in telecommunications, systems programming, and personal computer
areas. It also plays a leadership role in coordinating the growth
and use of computer systems throughout the county government.
Advice and guidance is also provided on acquisition of computer
equipment by the agencies.
Purchasing Division
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. 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 qualifications statements 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.
Operates storeroom for stationery and office supplies for all
departments and agencies.
Real Property Tax Division
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.
Treasury Division
Treasury 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, as are certificates and
annual licenses for taxis. Additionally, collection of improvement
district assessments and collection records are within the jurisdiction
of Treasury.
STAFF
The Department is authorized 102 permanent positions.
Distribution and type of positions are listed as follows:
Personnel
ADMINISTRATION: (3)
Director of Finance
Private Secretary
Senior Account Clerk
ACCOUNTS: (l0)
Controller
Accountant V
Accountant III
Inventory and Property Management Specialist
Pre-Audit Clerk II (2)
Pre-Audit Clerk I
Senior Account Clerk
Account Clerk
Assistant Account Clerk
BUDGET: (2)
Budget Administrator
Budget Analyst III
DATA PROCESSING: (l3)
Data Processing Manager
Data Processing Systems Analyst II (4)
Data Processing Systems Analyst I (3)
Data Processing Support Coordinator
Computer Operator II
Computer Operator I
Data Processing Clerk (2)
PURCHASING: (5)
Purchasing Agent
Procurement & Specifications Specialist
Buyer III
Buyer I
Contracts Clerk
Storekeeper
TREASURY: (l6)
Treasurer
Accountant III
Supervising Motor Vehicle Registration Clerk
Motor Vehicle Registration Clerk II (2)
Motor Vehicle Registration Clerk I (9)
Senior Account Clerk
Pre-Audit Clerk
REAL PROPERTY TAX: (52)
County Real Property Tax Administrator
Assistant County Real Property Tax Administrator
Real Property Valuation Analyst III
Real Property Appraiser V (2)
Real Property Appraiser IV (l0)
Real Property Appraiser III (2)
Real Property Appraiser II
Accountant II
Tax Collections Assistant (3)
Supervising Real Property Tax Clerk II
Real Property Tax Clerk (l5)
Senior Account Clerk
Cashier II
Cashier I
Tax Maps and Records Supervisor II
Data Processing Systems Analyst II
Real Property Drafting Technician III
Real Property Drafting Technician II (2)
Abstracting Assistant III (4)
Abstracting Assistant II (2)
Abstractor II
Accounts Division
Dixie Kaetsu, a California native, has served as
the Controller, head of the Accounts Division, since March l990.
She graduated with a Bachelor's degree from the University of
Redlands with a major in political science and economics with
specialty in accounting. Prior to her present position, she worked
as an accountant in the County's Treasury Division. Her experience
before entering county government included accounting work for
several firms in Hilo and for the Internal Revenue Service in
California.
Budget
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.
Data Processing
Gail A. Rock is the Data Processing Manager, head of the Data Processing Division. He earned a Bachelor of Science degree in Engineering at Penn State University and a Master of Science degree from New Mexico State
University in Computer Science, and is a graduate
of the New York Institute of Finance. He served in the U.S. Marine
Corps. His work experience includes Ford Motor Company and IBM.
He has also been an investment executive, owner of a computer
business, and a computer consultant. He joined the County in 1979.
Purchasing
Bill Gray, a native of California, has served as
the Purchasing Agent, head of the Purchasing Division, since l982.
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 Kona Village Resort.
Real Property Tax
Gary Kiyota, a native of Oahu, has served as the
Real Property Tax Administrator, head of the Real Property Tax
Division, since l98l. 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.
Treasury
Frank Manalili, a native of Hilo, has served as the
Treasurer, head of the Treasury Division, since l977. He received
his Bachelor of Business Administration degree from the University
of Hawaii, Manoa Campus. Prior to his present position, he served
as business manager of the Hawaii County Police Department. His
experience also included work with the Bank of Hawaii in Hilo.
Budget
During the l995-96 Fiscal Year, the department was
initially authorized the following budget allotments:
Administration and Budget $ 252,731
Accounts 732,211
Purchasing 385,661
Treasury 750,943
Real Property Tax 2,327,770
Data Processing 592,204
Total $5,041,520
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 totalled $36,902,287 for Fiscal Year l995-96.
Pension Board
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.
Board Members are:
Member Expiration
Faustino D. Domingo December 3l, l996
Bradley T. Kinoshita, Chairperson December 3l, l997
Michie Kuwaye, Vice Chairperson December 3l, l998
Laura Y. Chock December 31, 1999
Ruth E. K. Walker December 31, 2000
Real Property Tax Board of Review
The Real Property Tax Board of Review consists of
five members. Its duties are to hear all disputes between the
director and any taxpayer in which appeals have been filed on
a timely basis. The Board has the necessary powers and authority
to decide all questions of fact and all questions of law, except
those relating to the Constitution or laws of the United States,
to determine the objections raised by the taxpayer except that
the Board cannot determine or declare an assessment illegal or
void. The Board is also empowered to allow or disallow exemptions
pursuant to law whether or not previously allowed or disallowed
by the Director and to increase or lower any assessment.
Board Members are:
Member Expiration
Mahina T. Maxey December 31, 1996
Bill Thibadeau, Chairperson December 31, 1997
Floyd A. Miguel December 31, 1998
Jesse K. Manlapit December 31, 1999
William F. Eger, Vice Chairperson December 31, 2000
Appeal counts by zone are listed below:
Zone Area Number
l Puna 161
2 South Hilo 84
3 North Hilo 52
4 Hamakua 112
5 North Kohala 8
6 South Kohala 144
7 North Kona 209
8 South Kona 31
9 Ka'u 27
TOTAL 828
All of the casework for the l995-96 appeals were
completed by the members of the Tax Board of Review. Special thanks
and recognition are extended to K. T. Cannon-Eger, whose term
expired on December 31, 1995, for her time and contributions as
a board member for the last five years and especially her wisdom
and stewardship while serving as board chairperson. Special thanks
is also given to Linda Smith who resigned after serving two dedicated
years on the board.
The board was furnished with a new worksheet designed
to include much more information about the parcel under appeal.
The worksheet is a welcomed addition in assisting each board member
during the hearing process.
HIGHLIGHTS
During 1995-96, the department participated in, implemented
and/or accomplished the following:
ACCOUNTS
The County again received a Certificate of Achievement
for Excellence in Financial Reporting from the Government Finance
Officers Association for its fiscal year 1995 comprehensive annual
financial report, copies of which are available from the office
of the Director of Finance.
Recordkeeping for vacation and sick leave was decentralized
with each department responsible for its own records. This move
eliminated duplicate manual posting, resulting in greater efficiency.
A procedures manual covering the change was prepared and distributed
to all departments to aid them in the transition.
The first phase of a staff reorganization was completed.
The professional accounting staff has been increased, which will
allow the division to keep up with new accounting requirements
due to more special funds and other pending changes.
Six new personal computers and one new printer
were acquired during the year. All staff attended training classes
in the use of spreadsheet and word processing software. Many tasks
that were formerly done manually have been transferred to PC's,
resulting in time savings and greater efficiency.
DATA PROCESSING
Computer Systems & Operations
Major software upgrades for the County's seven Wang/VS
mini-computer systems were completed, including the Police and
Prosecuting Attorney systems. This brought the operating system
software, networking software, and common applications software
to a more compatible level across all systems. Also, procedures
for making daily software backups on the main computer system
were revised to save staff time, reduce wear and tear on equipment,
and use less electricity. Finally, documentation for startup,
shut down, and recovery procedures for the three main systems
were updated to improve operational control.
Computer Maintenance
A bid for computer maintenance yielded a new multi-year
contract to cover the County's Wang computer systems. Terms and
pricing are similar to the old contract and the County has obtained
more flexibility in designating items to be covered. Also, the
bid obtained quotes for servicing IBM-compatible PC systems for
departments and agencies requiring coverage. Finally, new multi-year
contracts were established with outside vendors for alarm system
and fire system service to protect our three computer room sites.
Kona Computer Room Renovation
A new UPS (uninterruptible power system) was installed
at Kona Services Center to improve system reliability. Also, E-mail
software was installed to enable electronic communication among
Kona Services Center employees and counterparts located in Hilo.
In conjunction with the relocation of several County agencies
in the Kona area to the County's renovated Hanama Place office
building, the Kona computer system was moved to a new room and
state-of-the-art cabling improvements were made.
Telecommunications
Dial-up access to the County's main Wang computer
system was expanded to three telephone lines. This lowers operational
costs for remote County departments and agencies wishing to access
the County's main computer system on an infrequent basis.
In conjunction with installation of a new computer system for Elections Division, a "frame relay" telecommunications link to Oahu was installed. This will yield long term cost savings and improved reliability. Hawaii County is the first neighbor island county to utilize this new telecommunications methodology.
New Computer Systems
Several projects involved providing advice, planning,
specifications, proposal evaluations, and/or installation coordination
and assistance for new departmental computer systems for the Police,
Fire, County Clerk, and Public Works departments. Follow up advice
and assistance was provided to Planning Department in an effort
to safeguard and improve overall management and use of their existing
departmental computer system.
Support For Ongoing Applications
Numerous enhancements and modifications were incorporated
into existing computer applications to accommodate new requirements
and to improve overall processing efficiency. Financial systems
receiving significant attention included the Accounting, Payroll,
and Sewer Billing systems.
Preliminary work was completed in a project to
revise the method by which Accounting and Payroll system warrants
are printed. In the near future, all warrants will be printed
on laser printers. This will reduce the need for certain equipment
and allow the processing to run more efficiently. This conversion
also provides Accounts Division with an opportunity to revise
the layout of the warrants.
Training
Numerous small group training sessions covering a
variety of subjects were provided to County employees from many
departments and agencies throughout the year. In an effort to
improve self-education of employees, computer related training
materials such as video tapes were also updated, categorized,
and made more available to departments.
Data Processing Planning
All members of Data Processing Division participated in numerous workshop sessions in the process of developing a revised plan for our division to improve the delivery of services. Work was completed in the following area:
IMPROVING TEAMWORK WITHIN THE DIVISION.
Early in next fiscal year, attention will be focused on the following area:
PROVIDING COUNTY AGENCIES WITH THE BEST SUPPORT.
PURCHASING
Conducted a one-day training workshop on new procurement
law with Corporation Counsel.
Procurement and Specifications Specialist position
is being filled which should improve timeliness of completing
major bid purchases and requests for proposals.
Added storekeeper position and took over storeroom function from Accounts; eliminated dependence on Senior Employment positions.
REAL PROPERTY TAX
The Real Property Tax Division was involved in
several noteworthy events in fiscal 1995-96. One of the biggest
events was the movement of the Kona office to its new site at
Hanama Place. While the move was officially noted as July 1, 1996,
the physical move occurred in the last week in June. The larger
office area was appreciated by the entire staff.
There were several significant amendments to the
real property section of the Hawaii County Code. Amended were
sections that now allow the pro-ration of taxes for buildings
that were destroyed by fire during the tax year and the inclusion
of a June 30 disability claim deadline in addition to the December
31 deadline. The native forest bill was passed by the County Council
in May.
The committee reviewing Chapter 19 of the Hawaii
County Code relating to real property met for the first time in
September and met for at least once a month throughout the rest
of the fiscal year. The goal of the committee was to provide for
a more consistent and effective taxation program. Revisions involved
language "housekeeping", consistency in language among
the various sections of the chapter, and the strengthening of
the agricultural use and dedication programs. The Chapter 19 revision
was introduced to the Council's Finance Committee meeting on June
29 and its final outcome has not yet been made.
TREASURY
Ongoing objectives of investing 99% of all funds
and processing vehicle transactions on a timely basis were maintained.
Interest earnings exceeded projections and after adjustment for
interest on drug forfeiture funds should exceed budget amount
by $890,000 primarily due to stable interest rates throughout
the year and a high level in bond funds available for investment.
In February 1996, we closed a $30 million bond
issue at an interest rate of 4.99%. The rate was the lowest the
County has borrowed in the open market in over 25 years. In March
1996, we closed the "overdue" Papaikou Sewer System
bond issue with the United States Department of Agriculture.
The Improvement District #16 (Keaau Ag Lots) bond
issue of 1986 was called in January 1996 since monies was available
in this special fund to call the entire issue. Currently, we are
still collecting from 103 lot owners and project to collect from
them until mid-1999 when sufficient funds will be available to
refund all lot owners who pre-paid on their lots. This apportionment
assures that all assessees paid their fair share of the improvements.
Relocation of our Kailua-Kona office to Hanama Place took place on June 27, 1996. This relocation was accomplished without any interruption of service to the public.
The department will be working toward the following
developments in the near future:
PURCHASING
During the upcoming year, Purchasing hopes to amend
Finance Director's Rule regarding Purchasing to conform to changes
created by new law and give using agencies more authority for
small purchases.
Upon completion of new rules, Purchasing Division
hopes to completely revise all procedures and issue a manual for
use by all agencies. Manual will be introduced in stages at training
workshops conducted for invited agency personnel who are directly
involved with procurement process.
DEPARTMENT OF FINANCE
TREASURY DIVISION
STATISTICS l993-94 l994-95 1995-96
Vehicles (Registrations processed) 111,375 110,906
110,052
Motor Vehicle Transfers 30,838 31,158 31,887
Duplicate Certificates 9,686 9,841 5,861
Non-Resident Permits 97 78 83
Business and Occupational Licenses 216 221 237
Bicycle Licenses 2,656 3,537 2,393
Dog Licenses 4,005 4,636 5,340
Improvement Districts 2 2 2
General Obligation Bond Issues 13 10 12
State Revolving Fund Loans 5 6 9
Treasury Receipts Handled 6,806 7,173 7,611
Petty Cash Vouchers Issued 3,628 3,667 3,283
Subpoena Certification 847 785 726
INTEREST EARNED ON INVESTMENTS 1993-94 l994-95 l995-96
General Fund $2,135,422.22 $3,217,215.56 $3,723,819.13
Trust Fund 94,487.23 115,834.21 109,957.05
Improvement Districts 386,794.98 513,189.62 425,181.98
Hawaii County Housing Agency 120,517.78 166,822.58
161,619.56
TOTAL $2,737,222.21 $4,013,061.97 $4,420,577.72
Percent of available cash invested 99.40% 99.49%
99.69%
Rate of return on amount invested 3.04% 4.69% 4.92%
REAL PROPERTY TAX DIVISION
ASSESSOR'S NET TAXABLE VALUE
l995 l996 Percent Decrease
$10,611,588,618 $10,279,240,111 0.03%
Real Property Master File Data
Land Parcels (January l, l996) l25,851
Building Records 61,659
Exemption Records 35,759
Gross Land Value $6,673,503,900
Total Land Exemption $ 508,366,390
Gross Building Value $5,688,145,657
Total Building Exemption $4,460,455,712
Number of Condominium Units 9,396
Petition for Dedication Processed for l996-97 Tax
Year
Dedication Received Approved Disapproved Withdrawn
Agri-20 yr 2 2 0 0
Agri-l0 hr 0 0 0 0
Agri-Urban 1 1 0 0
Residential 0 0 0 0
Urban-Open Space 0 0 0 0
Historic Res. 0 0 0 0
Change of Use 0 0 0 0
Non-Spec Res. 62 53 4 5
TOTALS 65 56 4 5
Real Property Tax Collections
Current Year (l994-95)
Net Taxes
Original Collected P&I Balance
Debit ÿ (Incl. Adjmts) Collected Due ÿ
$91,765,844.52 $87,471,575.84 $546,533.39 $3,747,735.29
Prior Year (Delinquent)
Original Net Taxes P&I Balance
Debit ÿ (Incl. Adjustmts) Collected Due ÿ
$11,885,830.47 $5,106,333.91 $1,443,474.66 $5,336,021.90
Three (3) nonjudicial tax foreclosure sales were held during Fiscal Year 1995-96. There were seventy (70) properties sold on October 24, 1995, and the total amount of delinquent taxes, penalties, and interest collected was $98,016.77. Twenty-seven (27) properties were sold on
December 5, 1995, and the total amount of delinquent taxes, penalties, and interest collected was $57,101.34. Twenty-six (26) properties were sold on June 5, 1996, and the total amount of delinquent taxes, penalties, and interest collected was $13,193.69.