COM 0140.009 2002-2004 - Laserfiche WebLink

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peacekeeping costs, and prolonged homeland security anxieties pose the threat of economic recession. While we redouble our efforts to sustain tourism, I think it's advisable to immediately prepare a more cautionary estimate of T.A.T. revenue based upon a likely slowdown in visitor spending. Our T.A.T. revenue scenario is further complicated by the uncertainty surrounding H.B. 1554, now proceeding in the legislature. On March 19, H.B. 1554 was amended to allow the City & County of Honolulu to impose a sales tax (not a G.E.T. surcharge) not to exceed 1 with the Senate Ways and Means Committee yet to decide the apportionment of T.A.T. revenues among the Neighbor Island counties, as well as an implementation date. If this bill is adopted and meets with the governor's approval, it may increase the share of T.A.T. revenues disbursed to the outer islands. However, the fate of this bill and its implementation remains uncertain. To date, the administration and several council members have submitted written testimony to the Legislature in support of this measure. As this bill nears final form, the administration and the Council should closely monitor its implications for our overall revcnue picture. 2. Indebtedness and Fund Balance. Yesterday, the Council unanimously approved a hefty $36 million bond float. The projects to be funded are worthwhile. Moreover, the prompt sale of these bonds will enable the County tc~ take advantage of unprecedented low interest rates. However, this action adds to our overall debt service and impinges upon our ability to maintain a healthy fund balance. Moreover, the Council is interested in establishing a higher disaster fund balance by ordinance. 3. Status of ERS Suit Circuit Court Judge Gary W. B. Chang dismissed SHOPO's suit seeking lost earnings in the Employees Retirement System on March 18. However, this case will be appealed, so its outcome remains uncertain. As such, I would appreciate your counsel as to the appropriate amount to be budgeted for our ERS contribution in the coming year. 4. Supplemental Budget Requests. During our March budget hearings, the Council received supplemental budget requests from the Prosecuting Attorney's Office, Fire Department ($4. I M) and Police Department. Each of these departments makes enormous contributions to public safety, a core function of county government [ am particularly concerned with the state of our undermanned Fire Department. To thoughtfully consider these supplemental requests, based on merit and availability of funds, I ask your administration to provide us with guidance. Clearly, not all supplemental requests can be accommodated. What do you propose as priority spending for each of these departments? I welcome your input. 5. Additional Considerations. Finally, based upon discussion during the Council's March 13- 19budget hearings, I would like to know your position on the following: • Fees for building permits, biennial dog licenses, Panaewa Rainforest Zoo adult admissions, fundraisers at county gyms, Panaewa Equestrian Center boarding fees, Summer Fun programs, graduated increases in golf course greens fees, etc. • Fuel tax increase