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 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, 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 includes 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.

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 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 member of the Hawaii County Police Department.

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.

Personnel

The Department is authorized 86 permanent positions. Distribution and type of positions are listed as follows:

BUDGET

During the 1999-2000 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 totalled $35,913,204 for Fiscal Year 1999-2000.

During 1999-2000, 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 1999 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 was completed during the year. All county warrants are printed on blank check stock, which will result in a savings in printing costs, and eliminate quality control problems with preprinted warrants. The new system is working well.
• Several training activities related to the implementation of new accounting standards were conducted for County staff. Necessary work on fixed assets and infrastructure has begun so that implementation will be completed by the mandated deadlines.

Budget

• The FY 2001 Operating Budget document was redesigned and reformatted to focus more on programs, objectives, and accomplishments. This change was welcomed by the County Council during its annual budget reviews with the departments and agencies.

Purchasing

• Preparations for Y2K potential problems, including ability to prepare Purchase Orders manually, were fortunately not needed – all Purchasing Computer Systems functioned without problems. A new system of printing purchase orders without using expensive multi-part forms was developed in conjunction with Data Systems Division and will be implemented shortly. Purchasing staff members continued formal training on personal computer systems.
• Worked with City and County of Honolulu to issue a joint RFP for all Counties for procurement card system, which will operate similar to MasterCard or Visa credit cards. RFP completed and award to be made soon to selected vendor. Test of system contemplated during FY 2000-01. This should eventually result in fewer requisitions and confirming payment authorizations being issued and much more efficient operations.
• Two training sessions were held for all departments and agencies. The first was held on July 13, 1999, and emphasized Y2K preparations and the new law for legal advertising along with refresher courses on requisitions and confirming payment authorizations. The second was held February 9, 2000; topics were formal delegation of purchasing authority as required by Hawaii Administrative Rules; purchasing manual updates; revised contract and change order/supplemental agreement routing slips; standardized procedures for newspaper advertising. (Budget savings over previous fiscal year of over $70,000 due to standardized processes and State contract issued to single vendor).

Real Property Tax

• The members of the Tax Board of Review would like to thank outgoing Chairman William Eger for his years of dedicated service and valuable leadership. Mr. Eger resigned his appointment in order to seek elective office. The members of the board are also pleased with the initiatives that were started two 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 division aggressively pursued delinquent taxpayers, which resulted in reductions to the amount of outstanding taxes. 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, a tool designed to measure assessment accuracy and assessment uniformity and 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 94 percent; and the coefficient of dispersion for both categories was 15.96 percent and 13.95 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 adjustments for arbitrage and interest on drug forfeiture funds should exceed budget amount by $196,000.

Real Property Tax Division

ASSESSOR’S NET TAXABLE VALUE

REAL PROPERTY MASTER FILE DATA

PETITION FOR DEDICATION PROCESSED FOR 1990-00 TAX YEAR

Current Year (1999-2000)

Prior Year (Delinquent)

Two (2) non-judicial tax foreclosure sales were held during Fiscal Year 1999-2000. There were eighty-three (83) properties sold on February 2, 2000; and the total amount of delinquent taxes, penalties, and interest collected was $53,418.09. Thirty-seven (37) properties were sold on June 21, 2000; and the total amount of delinquent taxes, penalties, and interest collected was $38,282.85.

PROGRAM MEASURES

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, respectively.

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 of Finance 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.

Appeal counts by zone are listed below: