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DEPARTMENT OF FINANCE

By Richard Snyder,2014-08-07 01:45
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DEPARTMENT OF FINANCE

    DEPARTMENT OF FINANCE

ROLE AND DUTIES

    The Department of Finance’s significant functions are financial planning and administration, and its primary responsibilities are in five areas: accounts, budget, assessment, purchasing and treasury.

    The department is organized into five divisions: accounts, budget, real property tax, purchasing and treasury.

    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 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. It 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.

    Personnel

    The Department is authorized 86 permanent positions. Distribution and type of positions are

    listed as follows:

ADMINISTRATION:

    (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: (17)

     Treasurer

     Accountant III

     Supervising Motor Vehicle Registration Clerk

     Motor Vehicle Registration Clerk II (2)

     Motor Vehicle Registration Clerk I (10)

     Senior Account Clerk

     Pre-Audit Clerk

    BUDGET

    During the 2000-2001 Fiscal Year, the department was initially authorized the following budget allotments:

    Administration and Budget $ 355,532

    Accounts 620,226

    Purchasing 658,789

    Treasury 732,019

    Real Property Tax 2,716,052

    Office Rent & Maintenance 794,004

    TOTAL $ 5,876,622

    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 $34,658,870 for Fiscal Year 2000-2001.

HIGHLIGHTS/ACTIVITIES

    During 2000-2001, the department participated in, implemented and/or accomplished the following:

Department of Finance

     ; In addition to the change of administration, two key positions were vacated. Recruitment of a new Controller and Treasurer was a high priority, and resulted in the hiring of two excellent employees who brought many years of experience and a fresh perspective to their positions.

     ; After months of planning, the Real Property Tax division began the task of conversion from the City & County of Honolulu’s tax system to our own, in-house real

    property tax accounting and billing system. The change in systems will allow the division more flexibility in collecting and managing appraisal data, as well as billing and reporting.

     ; The department has continued to provide quarterly training sessions/meetings on a variety of fiscal topics and other related areas. The meetings provide a forum for representatives from all departments to receive information and exchange ideas.

     ; The flood of November 2000 affected the Finance Department, as well as those directly involved in the emergency response and subsequent clean up and repairs. Primary activities were the receipt of funds from federal agencies, distribution of those funds to the appropriate departments, and oversight of record keeping and preparation of federal reports.

Accounts

     ; The County again received a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for its fiscal year 2000 comprehensive annual financial report, copies of which are available from the office of the Director of Finance.

     ; Several training activities related to the implementation of new accounting standards were conducted for County staff. The new standards will affect the way the County reports its fiscal activity.

    Work on fixed assets and infrastructure has begun, so that implementation will completed by the mandated deadline of June 30, 2002.

Budget

     ; The Budget division offered additional training to assist departments in utilizing programs, objectives, and accomplishments as measurement tools, in addition to the traditional line-item budgeting.

     ; The County acquired an additional revenue source, in the form of the Public Service Company Tax, which is anticipated to provide approximately $4,000,000 for the County budget.

Purchasing

    The new system of printing purchase orders without using expensive multi-part forms was completed and implemented in conjunction with Data Systems Division. Purchasing staff members continued formal training on personal computer systems.

    City and County of Honolulu failed to make an award for a joint RFP for all Counties for a procurement card system, which will operate similar to MasterCard or Visa credit cards. State subsequently issued an identical RFP and responses are currently being evaluated. Test of system contemplated during second half of FY 2001-02. This should eventually result in fewer requisitions and confirming payment authorizations being issued and much more efficient operations.

    A training session was held for all departments and agencies in May. Topics included update of procurement legislation; purchasing manual updates; revised contract and change order/supplemental agreement routing slips; standardized procedures. Buyer I completed a State training course in Honolulu of Government Purchasing and Hawaii’s procurement laws.

Treasury

     ; The Treasury Division’s most significant event during the past fiscal year was the retirement of Frank Manalili who served as County Treasurer for 22 years. Frank oversaw the Division’s rapid growth over the past two decades. The floating of over a dozen

bond issues, the opening of an office in Kona, and the computerization of office functions

    were the highlights of Manalili’s tenure.

    Vehicle (Registrations Processed) 121,851 128,096 131,310 Motor Vehicle Transfers 35,584 37,490 36,611 Duplicate Certificates 6,790 7,093 7,038 Non-Resident Permits 71 68 66 Business and Occupational Licenses 78 110 93 Bicycle Licenses 4,042 5,420 4,384 Dog Licenses 5,739 6,761 5,907 Improvement Districts 2 1 1 G.O. Bond Issues 11 11 11 State Revolving Fund Loans 12 12 14 Treasury Receipts Handled 8,692 9,100 8,978 Petty Cash Vouchers Handled 3,530 3,063 3,230 Subpoena Certification 1,506 2,026 1,078

INVESTMENTS

    Interest Earned On Investments FY 1998-99 FY 1999-00 FY 2000-01 General Fund $4,560,970.81 $4,930,298.03 $6,345,756.11 Trust Fund 111,851.14 142,484.16 225,732.61 Improvement Districts 253,058.88 266,705.36 296,169.87 Hawaii County Housing Agency 188,834.06 219,284.68 261,098.96 Total $5,114,714.89 $5,558,772.23 $7,128,757.55 Percent Of Available Cash Invested 99.31% 99.56% 98.74% Rate Of Return On Amount Invested 5.21% 4.67% 6.46%

PURCHASING DIVISION

Program Measures

     FY 1999-00 FY 2000-01 FY 2001-02

    Estimate Estimate/Actual Estimate Purchase Orders Issued 8,309 9,000/8,907 8,000

    Confirming Payment Authorizations

    Issued 19,518 15,000/18,745 18,000 Requisitions Received 7,994 7,500/8,768 8,000

    Contracts Completed 66 75/76 75

    Advertised Formal Bids 47 50/50 50

    Informal Written Requests for Quotation 187 200/187 200

    Advertised Requests for Proposals 7 15/7 10

    Contract, C/O & S/A Review for

    Compliance 769 850/688 800

    Sole Source Approvals (exceeding

    $25,000) 5 5/5 5

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, respectively.

    Members of the Board Term Expiration

    Alberta H. Lindsay, Chairperson December 31, 2002

    Mary R. Kim, Vice Chairperson December 31, 2001

    Beatrice L. Lau December 31, 2003

    Agnes P. Perreira December 31, 2004

    Susan Sulprizio December 31, 2005

REAL PROPERTY TAX DIVISION

Personnel

    REAL PROPERTY TAX:

    (48)

     County Real Property Tax Administrator

     Real Property Valuation Analyst III

     Real Property Appraiser VI (1)

     Real Property Appraiser V

     Real Property Appraiser IV (12)

     Accountant II

     Tax Collections Assistant (3)

     Supervising Real Property Tax Clerk II

     Supervising Real Property Tax Clerk I

     Real Property Tax Clerk (15)

     Senior Account Clerk

     Cashier II

     Cashier I

     Abstractor I (3)

     Abstracting Assistant II (3)

     Abstractor II

    Assistant County Real Property Tax Administrator

HIGHLIGHTS/ACTIVITIES

     ; The members of the Tax Board of Review are extremely grateful the board is now fully staffed with the appointment of David Powell to the board. The members of the board are also pleased with the initiatives that were started three 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.

     ; 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 86 percent; and the coefficient of dispersion for both categories was 16.26 percent

    and 16.08 percent, respectively. This statistical data indicates a high level of accuracy in the

    assessments by the Division.

ASSESSOR’S NET TAXABLE VALUE

    2001 2000 Percent Decrease

    $11,122,377,427 $10,139,425,947 1.0969%

REAL PROPERTY MASTER FILE DATA

    Land Parcels (January 1, 2001) 132,423 Building Records 63,523 Exemption Records 42,260 Gross Land Value $6,750,138,877 Total Land Exemption $ 660,405,293 Gross Building Value $6,804,710,975 Total Building Exemption $1,772,067,132 Number of Condominium Units 10,946

PETITION FOR DEDICATION PROCESSED FOR 2000-01 TAX YEAR

    Dedication Received Approved Disapproved Withdrawn

    Native Forest 0 0 0 0 Agr-20 yr. 69 45 13 11 Agr-10 yr. 0 0 0 0 Agr-Urban 0 0 0 0 Residential 0 0 0 0 Urban-Open Space 0 0 0 0 Historic-Residential 0 0 0 0 Change of Use 0 0 0 0 Non-Spec Residential 25 23 1 1 Totals 94 68 14 12

    REAL PROPERTY TAX COLLECTIONS

Current Year (2000-2001)

    Net Taxes

    Collected Penalties and

    Original Debit (Incl. Adjmts) Interest Collected Balance Due

    $83,634,028.08 $80,861,108.55 $465,637.05 $2,307,282.48

Prior Year (Delinquent)

    Net Taxes Penalties and

    Original Debit (Incl. Adjmts) Interest Collected Balance Due

$10,193,052.03 $2,739,674.28 $832,908.03 $6,620,469.72

    Two (2) non-judicial tax foreclosure sales were held during Fiscal Year 2000-2001. There were twenty-five (25) properties sold on November 28, 2000; and the total amount of delinquent taxes, penalties, and interest collected was $42,695.17. Thirty-eight (38) properties were sold on June 20, 2001; and the total amount of delinquent taxes, penalties, and interest collected was $30,463.35.

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.

    Members of the Board Term Expiration

    Brian I. Nakashima December 31, 2001

    William F. Green, Chairperson December 31, 2002

    Fred T. Yamashiro, Vice-Chairperson December 31, 2003

    Gordon N. Ogasawara December 31, 2004

    David R. Powell December 31, 2005

Appeal counts by zone are listed below:

Zone Area Number

1 Puna 58

    2 South Hilo 62

    3 North Hilo 6

    4 Hamakua 13

    5 North Kohala 4

    6 South Kohala 110

    7 North Kona 65

    8 South Kona 21

    9 Ka’u 7

    PUC Across the island 36

     Total 482

    Where it came from . . .

    All other revenuesInterest earnings

    Charges for services

    State & federal funds

    Real property taxes

    Licenses & permits

    Fuel & public utility franchise taxes

    Where it went . . .

    All othersGeneral governmentCash CIP

    Pension & retirement

    Debt Service

    Public safety

    Recreation

    Highways & streetsSanitation/waste removal

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