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DEPARTMENT OF FINANCE

finance_takahashi.gif (17631 bytes) 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.

Spencer Kalani Schutte, Deputy Finance Director, was first elected to the County Council in November 1980, representing the districts of North and South Kohala. He served as Council Chairman, Chairman of the Hawaii County Housing Agency, Vice Chair of the Council 1980-1988, Chair of the Human Services and Recreation Committee, Vice Chair of the Charter Review Committee, NACo Community Development Policy Steering Committee and in the Hawaii State Association of Counties. Originally from Honolulu and a graduate of Roosevelt High School, Schutte is a rancher in Kamuela. He has a varied business background, which includes charter fishing, restaurant, contracting, general landscaping, nursery and ranching activities.

 

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 five areas of control – accounts, budget, assessment, purchasing and treasury.

In order to carry out its assigned functions and responsibilities, the department is organized into five divisions; namely, accounts, budget, real property taxation, 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, as are certificates and annual licenses for taxis. Additionally, collection of improvement district assessments and collection records are within the jurisdiction of Treasury.

STAFF

Accounts

Dixie Kaetsu, a California native, has served as the Controller, head of the Accounts Division, since March 1990. 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 including 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 enter county government includes management and accounting positions with the Hilo Coast Processing Company, Honiron and C. Brewer and Co., Ltd. in Honolulu.

Purchasing

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 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 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 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 1977. 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.

The Department is authorized 85 permanent positions. Distribution and type of positions are listed as follows:

Personnel

ADMINSTRATION: (4)

Director of Finance

Deputy Director of Finance

Private Secretary

Personnel Assistant I

ACCOUNTS: (10)

Controller

Accountant V

Accountant III

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

PURCHASING: (6)

Purchasing Agent

Procurement & Specifications Specialist

Buyer III

Buyer I

Contracts Clerk

Storekeeper

TREASURY: (16)

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: (47)

County Real Property Tax Administrator

Real Property Valuation Analyst III

Real Property Appraiser VI (2)

Real Property Appraiser V (1)

Real Property Appraiser IV (11)

Real Property Appraiser I (1)

Accountant II

Tax Collections Assistant (3)

Supervising Real Property Tax Clerk II

Real Property Tax Clerk (15)

Senior Account Clerk

Cashier II

Cashier I

Abstracting Assistant III (2)

Abstracting Assistant II (4)

Abstractor II

 

BUDGET

During the 1998-99 Fiscal Year, the department was initially authorized the following budget allotments:

Administration and Budget

$ 323,668

Accounts

577,582

Purchasing

654,886

Treasury

772,085

Real Property Tax

2,296,380

Data Processing

653,843

Office Rent & Maintenance

966,600

TOTAL

$6,245,044

 

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 $38,074,128 for Fiscal Year 1998-99.

HIGHLIGHTS/ACTIVITIES

During 1998-99, the department participated in, implemented and/or accomplished the following:

Department of Finance

· The Department of Finance is a participant in the Committee on Public-Private Competition for Government Services. Act 230 of the 1998 Session Laws of Hawaii established a thirteen member committee to develop a managed process that enables state and county governments to implement public-private competition for government services.

· Training sessions continued to provide an effective means by which issues were communicated to departments and agencies. Legislative action requiring changes to public notices was one of the subjects presented to the departments and agencies.

· Minimal growth to fiscal reserves presented budgetary challenges. Legislative action in readjusting the contributions to the Employee Retirement System provided much needed relief in meeting retroactive compensation adjustments.

Accounts

· The County again received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for its fiscal year 1998 comprehensive annual financial report, copies of which are available from the office of the Director of Finance.

· The conversion to a new PC-based system of printing warrants began during the year. When the conversion is completed in the upcoming year, all county warrants will be printed on blank check stock, which will result in a savings in printing costs, and eliminate quality control problems with preprinted warrants.

· The first part of a comprehensive accounting manual was issued. Part one includes detailed information about the funds and accounts used in the County’s main accounting system. Parts two and three of the manual will deal with procedures and policies, and will be forthcoming in the near future.

Budget

· The County awarded the contract to provide animal control services until June 30, 2002, following a Request for Proposal (RFP), a selection process in compliance with the new procurement law.

· The Administration succeeded in changing the expenditure control for the FY 2000 Operating Budget from the object code level to the base account code level. The format change provides departments with more budgetary flexibility in meeting its goals and objectives and allows the County to move to more performance and program-based budgeting.

Purchasing

· Procurement rules and regulation changes have been continuously monitored and revisions communicated to using agencies to keep them current. A Finance Department Training session was devoted to purchasing issues to assure that all departments and agencies would be able to comply. Various forms and checklists were revised and training provided.

· Storekeeper is evaluating stocking mix and working on a computerized inventory reporting system for County stationary and office supply storeroom.

· New PC’s have been delivered and installed. Purchasing staff is in process of completing training. New LAN system has been completed, enabling intra-staff projects and communication, along with Data Processing, Accounts, Budget and Finance Administration. Evaluation of PC-based software to replace Wang system is on hold depending upon what solution Accounts Division chooses. Division is on-line to internet and making use of new information sources. County website is on line with information available for bidders regarding upcoming IFB’s and RFP’s. Conversion from Wang to PC based word processing for bid documents is progressing.

· Records destruction has been completed on schedule; OIP reporting requirements are approximately 50% completed.

Real Property Tax

· The members of the Tax Board of Review are extremely pleased with the initiatives that were started last year to improve the relationships between the staff of the Tax Division and members of the board. The board members also initiated changes in their procedures that improved the hearings process for the taxpayer/appellant, involved in an appeal with the County of Hawaii. The Office of Corporation Counsel continues to provide guidance to the board relating to their statutory authority when conducting appeal hearings. The board members are certainly appreciative of the legal assistance provided by staff attorneys from the Office of the Corporation Counsel.

· The division aggressively pursued delinquent taxpayers in order to increase tax collections. The division again conducted two non-judicial foreclosure sales in order to reduce outstanding delinquent taxes. The County of Hawaii has developed a model program for conducting non-judicial foreclosure sales. All of the County’s sales are well attended and provide outstanding service to all persons involved. The results of non-judicial foreclosure sale are reported at the conclusion of the statistical data for the division.

· The division strives to maintain an efficient, educated, and well-informed staff capable of producing an accurate and uniform level of assessments for all property located in the County of Hawaii. The ratio study, which is a tool designed to measure assessment accuracy and assessment uniformity, which was conducted by the Department indicates outstanding results. The overall sales ratio for vacant land was 96 percent, for improved properties the ratio was 91 percent, and the coefficient of dispersion for both categories was 18.71 and 12.42 percent, respectively. This statistical data indicates a high level of accuracy in the assessments by the division.

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 $377,000.

Treasury Division

STATISTICS

FY 1996-97

FY 1997-98

Fy 1998-99

Vehicle (Registrations processed)

113,057

118,035

121,851

M. V. Transfers

33,003

34,282

35,584

Duplicate Certificates

6,125

6,397

6,790

Non-Resident Permits

58

62

71

Business and Occupational Licenses

104

92

78

Bicycle Licenses

2,370

4,413

4,042

Dog Licenses

5,590

5,067

5,739

Improvement Districts

2

2

2

G.O. Bond Issues

11

11

11

State Revolving Fund Loans

11

11

12

Treasury Receipts Handled

8,027

8,303

8,692

Petty Cash Vouchers Handled

3,645

3,649

3,530

Subpoena Certification

669

911

1,506

INVESTMENTS

INTEREST EARNED ON INVESTMENTS

1996-97

1997-98

1998-99

GENERAL FUND

$4,990,261.04

$4,984,957.36

$4,560,970.81

TRUST FUND

105,196.07

113,274.78

111,851.14

IMPROVEMENT DISTRICTS

308,096.58

352,826.45

253,058.88

HAWAII COUNTY HOUSING AGENCY

184,261.17

197,933.12

188,834.06

TOTAL

$5,586,814.86

$5,648,991.71

$5,114,714.89

PERCENT OF AVAILABLE CASH INVESTED

99.72% 99.61%

99.31%

RATE OF RETURN ON AMOUNT INVESTED

5.00% 5.24%

5.21%

Real Property Tax Division

ASSESSOR’S NET TAXABLE VALUE

1998

1999

Percent Decrease

$10,022,940,166

$9,882,111,499

1.405%

REAL PROPERTY MASTER FILE DATA

Land Parcels (January 1, 1999)

127,628

Building Records

62,454

Exemption Records

39,046

Gross Land Value

$5,973,405,300

Total Land Exemption

$ 499,082,184

Gross Building Value

$6,127,598,082

Total Building Exemption

$1,593,864,576

Number of Condominium Units

10,818

PETITION FOR DEDICATION PROCESSED FOR 1990-00 TAX YEAR

Dedication

Received

Approved

Disapproved

Withdrawn

Native Forest

0

0

0

0

Agr-20 yr.

65

65

0

0

Agr-10 yr

0

0

0

0

Agr-Urban

0

0

0

0

Residential

1

1

0

0

Urban-Open Space

0

0

0

0

Historic-Residential

0

0

0

0

Change of Use

0

0

0

0

Non-Spec Res

16

15

1

0

Totals

82

81

1

0

 

REAL PROPERTY TAX COLLECTIONS

Current Year (1998-99)

Net Taxes

Original

Collected

P&I

Balance

Debit

(Incl. Adjmts)

Collected

Due

$82,742,351.10

$80,052,055.66

$499,659.85

$2,190,635.59

Prior Year (Delinquent)

Original

Net Taxes

P&I

Balance

Debit

(Incl. Adjmts)

Collected

Due

$11,366,194.28

$3,604,760.82

$1,476,690.44

$6,284,743.02

Two (2) non-judicial tax foreclosure sales were held during Fiscal Year 1998-99. There were twenty-nine (29) properties sold on November 19, 1998, and the total amount of delinquent taxes, penalties, and interest collected was $21,619.87. Ninety-one (91) properties were sold on

May 4, 1999, and the total amount of delinquent taxes, penalties, and interest collected was $89,868.25.

 

BOARDS/COMMISSIONS

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

Laura Y. Chock, Vice Chairperson

December 31, 1999

Ruth E. K. Walker, Chairperson

December 31, 2000

Mary R. Kim

December 31, 2001

Alberta H. Lindsay

December 31, 2002

Beatrice Lau

December 31, 2003

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

Jesse K. Manlapit, Chairperson

December 31, 1999

William F. Eger, Vice Chairperson

December 31, 2000

Brian I. Nakashima

December 31, 2001

William F. Green

December 31, 2002

Fred T. Yamashiro

December 31, 2003

Appeal counts by zone are listed below:

Zone

Area

Number

1

Puna

213

2

South Hilo

133

3

North Hilo

10

4

Hamakua

37

5

North Kohala

13

6

South Kohala

155

7

North Kona

279

8

South Kona

22

9

Ka’u

35

Total

897

County of Hawaii Financial Summary

Fiscal year 1998 - 99

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Where it came from ...

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Where it went ...

 

Summary of Hawaii County Fiscal Operations

% Increase

Revenues:

1998-99

1997-98

(Decrease)

Real property taxes

84,791,838

87,420,313

-3.01%

Fuel & public utility franchise taxes

9,852,970

9,912,279

-0.60%

Licenses & permits

7,012,999

6,512,601

7.68%

State & federal funds

35,013,918

38,892,595

-9.97%

Charges for services

9,953,902

8,885,127

12.03%

Interest earnings

4,554,045

4,888,466

-6.84%

All other revenues

8,111,496

4,203,515

92.97%

159,291,168

160,714,896

-0.89%

% Increase

Expenditures:

1998-99

1997-98

(Decrease)

General government

20,160,057

20,497,622

-1.65%

Public safety

55,026,025

55,667,077

-1.15%

Highways & streets

7,632,271

6,424,721

18.80%

Sanitation/waste removal

11,837,188

11,860,770

-0.20%

Recreation

11,486,090

11,883,573

-3.34%

Debt service

17,276,719

16,984,357

1.72%

Pension & retirement

19,261,749

24,304,879

-20.75%

Capital improvements (cash)

3,568,058

5,681,455

-37.20%

All others

11,428,093

11,270,098

1.40%

157,676,250

164,574,552

-4.19%

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