COM 0140.009 2002-2004 - Laserfiche WebLink

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OJHVV Os N~~9 AARON S.Y. CHL'NG 1i Phone: 808 961-8396 Cmmdlmembcr ~T~ i ~ PAX: (808) 969-3291 1TE QF~HpQ~j COUN'T'Y COUNCIL Counh~ of I~~awaii Hawaii County Bui/ding 25Aupuni Street Hilo, Haeuaii 96720 March 20. 2003 Honorable Harry Kim Mayor, County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 Dear Mayor Kim, t am writing to request that you furnish the Council's Finance Committee with a brief summary of your budget direction for Bill 59, the FY 2003-04 Operating Budget. I ask that you reply in writing prior to the Finance Committee meeting on April ISr~'. At this time, a "line-by- line" revision is not required. Rather, I would ask you to simply survey your departments quickly for their input regarding proposed budget adjustments, including feasible budget cuts. Our nation is now at war. While we wish for a quick, decisive and merciful conclusion to this conflict, fiscal prudence dictates that we reasonably adjust some of our revenue projections and spending plans. In the present moment, both the administration and the Council are challenged to demonstrate resilience and clarity with respect to our fiscal priorities. A dramatic 10.49% increase in estimated real property tax revenues (pending certification) greatly eases the budget crunch experienced only one year ago. In large measure, this welcome development underscores your "status quo spending plan" transmittal of February 28, 2003, which proposed a $13 million increase above last year's operating budget. However, a variety of concerns -including the submittal of supplemental budget requests from the Police Department, Fire Department and Prosecuting Attorney's Offtce -beg for a collaborative and disciplined resolution of spending priorities in the coming tscal year. I invite you to help us illuminate those priorities. As necessary, I would like to know the administration's view on where selective cuts could be made in the amended budget. In making this request, I cite see eral outstanding concerns, as follows: 1. T.A.T. Revenues. It is certain that the war in Iraq will trigger a slowdown in visitor arrivals and, consequently, reduce our T.A.T. revenue projection, presently $15,781,000. Last week, the Council of Revenues reduced its visitor growth projections downward. I am concerned that even this latest estimate may he - to borrow a phrase from Federal Reserve Chairman Alan Greenspan - "irrationally exuberant." The unknown duration of the war, its subsequent Comm. No. ~ Ref. To: i~ Ref. Date ~Jp, ~ 2 n 2003