COM 0636.004 1996-1998 - Laserfiche WebLink

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MtY or q- Stephen K. Yamashiro Harry A. Takahashi Mayor Director • S. K. Schutte Deputy '1~j p'•N'i~ County of Hawaii DEPARTMENT OF FINANCE 25 Aupuni Street, Room 1 I S • Hilo, Hawaii 96720-4252 (808)961-8234 (808)961-8248 January 28, 1998 TO: Connie Kiriu, Legislative Auditor FROM: Harry A. Takahashi, Finance Director~(~ 1 SLTBJ: Bill 180, Draft 2, Authorizing the Issuance of $40 Million in General Obligation Bonds Letter dated: January 23, 1998 Enclosed is a memo from Treasurer Frank Manalili responding to items A-1 through A-7 of your January 23, 1998, letter. In response to Item A-8, the Administration will be preparing its 1998-99 budget on current situation, not on hypothetical possibilities. Each year, the County has been threatened with revenue adjustments. In our presentation to the Legislature, we recognized the possibility of the County's share of the Transient Accommodations Tax being reduced. We recommended that the Legislature consider the sharing of fines and forfeitures and portion of the Public Service Company Tax and exempting the County from paying Genera] Excise Tax on its procurements. In addition, we felt that an amendment to the Civil Service laws to allow for more flexibility would result in more efficient government services. All of these suggestions could be the means by which we could offset losses resulting from adjustments to the TAT formula. In addressing how might revenue declines be offset, we would revisit the budget, both in revenues and expenditures. Any negative impact may be offset by adjustments to income generators, expenditures, or program efficiencies. Responses to B-1 through B-3 will be provided by the Departments of Planning and Public Works. HAT:aeb cc: Donna Fay. K. Kiyosaki Russell Kokubun ATTACHMENT D