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<br /> Harry Kim "4 Dixie Kaetsu <br /> Mayor ~ Managing Director <br /> ~:•o;~;,.+` Peter Hendricks <br /> Deputy Managing Director <br /> ~ouutp of ~aboai`i <br /> 25 Aupuni Street, Room 2l5 • Hilo, Hawaii 96720-0252 • (808) 961-8211 • Faz (808) 961-6553 <br /> KONA: 75-5706 Kuakini Highway, Sui[e 103 • Kailua-Kona, Hawaii 96740 <br /> (808) 329-5226 • Fax (808) 326-5663 <br /> April 15, 2003 <br /> The Honorable Aaron Chung, Chair <br /> Finance Committee <br /> Hawaii County Council <br /> 25 Aupuni Street <br /> Hilo, Hawaii 96720 <br /> Dear Chairman Chung: <br /> Thank you for your letter of Mazch 20, 2003, requesting information about the proposed <br /> budget for fiscal year 2003-04. I appreciate your concern about the County's fiscal - <br /> projections now that the nation is at waz, and am happy to try to provide you with the <br /> information you request. <br /> Below I will try to address the specific concerns you raise. <br /> T.A.T. Revenues: If the latest Council on Revenues projection is accurate, Hawaii County <br /> will receive $47,000 less in Transient Accommodations Tax revenues than is included in the <br /> budget presented to you in February. However, this projection was made before war was <br /> declared. It appears at this time that the war may be of limited duration, and its impact <br /> therefore may not be as severe as if it were prolonged. However, the current SARS scare and <br /> the ongoing economic problems in Japan continue to have a negative impact on eastbound <br /> visitors. A revised estimate of T.A.T. revenues will be included with our amended budget in <br /> May. <br /> We are closely monitoring H.B. 1554. Supporting testimony has been submitted by the <br /> administration. Our position is that we do not support any provision that will reduce the <br /> County's share of T.A.T. revenues. We continue to be in close contact with our legislators on <br /> this issue as the bill goes to conference committee. <br /> Indebtedness and Fund Balance: We are very aware of the fact that the County's general <br /> fund balance has been declining over the past years. This is one of the reasons we proposed <br /> an increase in real property tax rates last year. In spite of the increased debt service <br /> attributable to the newly authorized bonds, we hope this trend has been reversed with greater <br /> tax revenues and an overall healthy economy in the County. <br /> Comm. No. <br /> Ref. To:~~~ <br /> Ref. Date 1 2~~3 <br /> <br />