COM 0103.000 2020-2022 Part 1, Volume 1

Home

Honorable Members of the Hawai'i County Council March 1, 2021 Page 2 for security services. No pay raises, or pay cuts have been included in the budget as we continue to negotiate statewide with the unions. In addition to annual revenue, one of our biggest struggles has been with staffing. As schools continue distance learning programs, many parents have had to take time off or work from home. At the same time,we have had to delay hiring wherever possible to offset employment costs while maintaining the services needed in our community. To continue supporting our economy, County workers, and providing essential services to our community, we have not implemented furloughs or a true hiring freeze. REVENUE Real property tax revenue is expected to increase by approximately $9.9 million or 3 percent. Federal and State grants are expected to provide another$3.3 million in additional revenue.Interest and Business Licenses and Permits will further supplement the bleak revenue projection by roughly $237 thousand. All of these increases are critical to providing essential services to our community. EXPENDITURES The increase in expenditures is minimal and is mostly related to meeting federal mandates, charter amendments, and the uncontrollable cost increases related to employee benefits. Employee benefits increased by approximately$7.5 million, with the bulk of$5 million going towards health insurance. An additional$3.1 million was transferred to the Solid Waste Fund, and approximately $3.2 million was transferred to the Disaster/Emergency Fund, as approved by voters in the 2020 General Election. IMPACT The increase in revenue has gone a long way in allowing us to balance our budget without jeopardizing our County's ability to continue providing essential services and day-to-day functions. However, as we look to the economic recovery required as a result of the COVID-19 pandemic, we will need to find creative solutions to bolster our budget as we begin to finalize in May. OPERATING BUDGET BY FUND The following table describes the budgeted expenditures for FY 2020-21 and the proposed budget for FY 2021-22 for each fund: • County of Hawaii is an Equal Opportunity Provider and Employer.