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VII. DEPARTMENT OF FINANCE

Harry A. Takahashi, a native of Hilo, graduated from the University of Hawaii, Manoa Campus, with a Bachelor's degree in business Administration.  Prior to his appointment as Director of Finance, he served as the Legislative auditor for the Hawaii County Council since 1976.  His experience before entering County service includes a management position with I Kitagawa & Co. in Hilo.

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:

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.

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.

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 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 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:

ADMINISTRATION: (4)

Director of Finance
Deputy 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: (6)

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: (51)

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
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
Abstracting Assistant III (2)
Abstracting Assistant II (4)
Abstractor II

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.

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.

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.

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.

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.

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.

During the l996-97 Fiscal Year, the department was initially authorized the following budget allotments:

Administration and Budget Accounts Purchasing Treasury Real Property Tax Data Processing County Kaiko'o Annex Total

$266,037 $529,604 $621,431 $724,394 $2,372,669 $607,627 $300,000 $5,421,762

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 $38,287,345 for Fiscal Year l996-97.

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 Bradley T. Kinoshita, Chairperson Michie Kuwaye, Vice Chairperson Laura Y. Chock Ruth E. K. Walker Mary R. Kim

Expiration December 3l, l997 December 3l, l998 December 31, 1999 December 31, 2000 December 31, 2001

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 Bill Thibadeau, Chairperson Floyd A. Miguel Jesse K. Manlapit, Vice Chairperson William F. Eger Mahina T. Maxey

Expiration December 31, 1997 December 31, 1998 December 31, 1999 December 31, 2000 December 31, 2001

Appeal counts by zone are listed below:

Zone 1 2 3 4 5 6 7 8 9 TOTAL

Area Puna South Hilo North Hilo Hamakua North Kohala South Kohala North Kona South Kona Ka'u

Number 139 151 41 95 13 97 187 81 20 824

HIGHLIGHTS

During 1996-97, the department participated in, implemented and/or accomplished the following:

DEPARTMENT OF FINANCE

• The Department of Finance initiated quarterly training sessions for all interested fiscal staff throughout the County. Training sessions provide participation opportunity to receive first hand instructions on fiscal procedure changes as well as re-enforcement of existing policies and regulations.

ACCOUNTS

• The County again received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for its fiscal year 1996 comprehensive annual financial report, copies of which are available from the office of the Director of Finance.

BUDGET

• Assumed the duties and responsibilities of administering, maintaining and monitoring of grants to private non-profit agencies.

DATA PROCESSING

• YEAR 2000 ISSUES

We began investigating the impact of the turn of the century upon County computer systems and applications. Computer systems which currently only hold the last two digits of a year may have problems. Computer applications written to store only two digit year date fields may have to be modified or replaced if the dates are used for computational or sorting purposes. We outlined a general strategy and assessment process we will be following to address the Year 2000 issue. We developed a Year 2000 plan, implemented steps to upgrade the County's central computer system to a Year 2000 compliant level, and are conducting in depth assessment of computer applications currently running on our Wang systems.

• BIG ISLAND ELECTRONIC VILLAGE AND THE INTERNET

A conference entitled "Building an Electronic Village - Big Island Style" was sponsored by the County Council with the cooperation of the University of Hawaii-Hilo. We participated in ongoing community efforts to promote the concept of a computer-based "electronic village". As a demonstration project, a few trial Web pages were set up on the Internet. We expect to implement an official Web Site for the County next fiscal year.

• PROJECT FUNDING

Several key projects received funding:

UPGRADE COUNTY'S CENTRAL COMPUTER SYSTEM TO BE YEAR 2000 COMPLIANT
UPGRADE OF STAFF PC SYSTEMS AND INSTALL OF WINDOWS NT LAN SERVER
UNINTERRUPTABLE POWER SUPPLY (UPS) FOR MAIN COMPUTER SYSTEM
ANTI-VIRUS SOFTWARE TO IMPLEMENT COUNTY-WIDE PROGRAM
DEVELOP INTERNET WEB SITE & HOME PAGE FOR THE COUNTY.

• DATA PROCESSING MANAGEMENT PLAN

Meetings were held with various departments and agencies to obtain computer support needs and assessment information. Upon evaluating the findings, common needs were identified:

Migrating off the Wang system toward PC systems
Networking/interconnectivity of computer systems and sharing data
County-wide applications (financial accounting, e-mail, etc.)
Training (in house training and coordinating outside resources)
Computer project support (RFP's, evaluations, liaison)
PC Local Area Network administration of departmental computers
Desktop PC technical support (general and troubleshooting)
Research and development into new technology areas
User groups for subjects of common interest.

This information is being utilized in the planning of projects and the allocation of staff resources to enable us to provide the best possible data processing support to County departments and agencies.

• STAFF RESOURCES

We received approval to fill a vacant Systems Analyst I position in our PC Support Branch. This will boost staff resources in that area by 50%.

• COMPUTER TRAINING

Internet overview and hands on orientation was provided in conjunction with the Finance Officers Conference sponsored by the County. Various methods of connecting to the County's central Wang computer via a phone line were outlined at a Finance Department Quarterly Training session. A free PC oriented workshop was provided at which popular Microsoft software products were reviewed, PC training resources were outlined, and levels of internal support Windows 95 and Microsoft Office suite software were discussed.

• COMPUTER DOCUMENTATION AND CROSS-TRAINING

Improved written documentation describing the procedures to follow in the processing of financial applications (e.g., Payroll, Accounting, Sewer Billing) and initial staff cross-training within our computer operations branch area were completed. Also, documentation and cross-training within our telecommunications networking area were completed.

• WARRANT PRINTING CONVERSION

Printing of accounting and payroll warrants onto laser printed, 8.5 x 11" cut sheet format was completed. This will yield efficiency and quality improvements in the printing of thousands of warrants each month. At the same time, new high speed laser printers were installed on the County's main Wang computer system which will enable us to complete work faster during times of high printing demands such as for payroll processing.

• SPECIAL PROJECTS

Professional service applicants to install a computer aided dispatching system (CAD) for the Police and Fire Departments were screened. A vendor was selected to install the County Clerk's new computer system, which will include PC-based technology built around a Windows NT server, Microsoft Office suite software, and Kofax imaging software.

PURCHASING

• Devoted one Finance Department training segment to Purchasing and Procurement issues. Training covered use of Contract Routing Form to provide a uniform checklist and routing of all contracts; new rules for tax clearance for contracts and purchase orders exceeding $10,000.00; small purchase procedures; and, requests for exemption from chapter 103D.

• Was able to promote from within to fill new Procurement and Specifications Specialist position. Resultant vacancies also became internal promotions with the Buyer I moving to Buyer III and the Storekeeping becoming the Buyer I. The final step in adding the new position should be completed soon with the recruitment for a new storekeeper in the final stages in August 1997.

• New state-of-the-art PC's for entire Purchasing staff were authorized and are on order. A local area network for Accounts, Purchasing, Budget and Finance Administration is also due to be installed in conjunction with Data Processing's new LAN, which should bring us up-to-date and enable electronic communications, access to the Internet and possibly replace paper and streamline operations.

• Final draft of new Rules will be available for advertising for public comment and review soon, incorporating changes to the procurement law including revised bid limits to take effect October 1, 1997.

• Upon adoption of new rules, we hope to make available an updated purchasing manual for all departments' use and continue training as opportunities arise.

• Upon installation of new PC's and LAN, we hope to work with Accounts Division to conduct a pilot project to electronically authorize small purchases and other payments to eliminate unnecessary paper.

• 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 the procurement process.

REAL PROPERTY TAX

• A review of Chapter 19 of the Hawaii County Code relating to real property was completed. Revisions involved language "housekeeping" and consistency in language among the various sections of the chapter, bringing the law up to date and making it easier to read, understand, and implement.

• Abstracting Assistants of the Hilo Mapping Section, along with the mapping sections of Kauai and Maui, are continuing training sessions in Honolulu. Training is being held to prepare the different counties to be able to do their own abstracting and drafting when the City and County of Honolulu turns over that function on July 1, 1998.

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 arbitrage and interest on drug forfeiture funds should exceed budget amount by $1,300,000 primarily due to stable interest rates throughout the year and a high level in bond funds available for investment (decrease of only $9,615,216 in Capital Projects Fund cash balance from prior fiscal year end).

• In February 1997, we closed a $4 million bond issue with the United States Department of Agriculture which provided funds for the acquisition of the Penneys facility in the Kaikoo Mall.+

DEPARTMENT OF FINANCE

TREASURY DIVISION

INVESTMENTS

REAL PROPERTY TAX DIVISION

ASSESSOR'S NET TAXABLE VALUE

Real Property Tax Collections

ANNREPT.XLS

Summary of Hawaii County Financial Operations

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