REP FC 090 04/15/2003 2002-2004 - Laserfiche WebLink

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RF,PORT OF THE COMMITTEE ON FINANCE DATE: April I5, 2003 PLACE: Council Chambers f[ME: 3:15 P.M. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. Nu. 140/Bill No. 59; Comm. Nos. 140.9 and 140.10; Comm. No. 140.14 Your Committee on Finance, to which was referred Bill No. S9, reports as follows: Bill No. 59, transmitted by Mayor Harry Kim via Communication No. 140. dated February 28, 2003, submits for consideration the proposed Operating Budget for the County of Hawai' i for the Fiscal Ycar July I, 2003 to June 30, 2004. The Operating Budget Proposal (Part I-Volmne 11) describes departments and their programs, program objectives, highlights, program measures, expenditures and positions. It also includes the operations of eleven of the County's Special Funds as well as the General Fund. "The proposed operating budget totals $218,665,135 in estimated revenues and appropriations (Part I- Volume f). 'fhe proposed budget reflects an increase of S 13,278,000 in expenditures, or 65`% more than the FY2002-03 budget. Revenues reflect a 10.49% increase in estimated pct real property tax collections, preliminary to valuations certified in April. 2003. No increase in property tax rates is proposed. Major increased expenditures include an additional $3,230,300 in county contributions to the Employees Retirement System Q'sRS) and $1,200,000 for projected arbitrated salary increases. To buttress public safety and fund the "War on Ice;' $836.000 is proposed ibr private contract cellblock security and the reassignment of 14 police officers to create hvo special "Ice Teams" in Kona and Milo (6 officers) and supplement patrol services in Waimea, Puna and Ka'u (8 officers). Various computer software to replace the County's Wang system and facilitate new case tacking for the Prosecutor's Office and new permit planning for the Planning Department totals 5755.000. Additional landfill costs account for an increase of $1.3 million and vehicle disposal costs increase by $I.I million. I~he expenditure plan calls for no personnel layoffs. Four new funded positions are proposed, as tbllows: • One county-funded Deputy Director position for the Office of Enviromnental Management; • Three (3) fedeally funded Hnucing & Cmm~n~nr!_v Der~elnpmen~ Speci~ilisl f' positions. Two of those hires will work on housing projects in Waikoloa; the other position will oversee CDBG projects. In an exhibit (Exhibit 2) dated March 10, 2003 attached to an advisory memorandum to Council members prepared by the Legislative Auditor's Office (Communication No. 140.14), a total of 263 vacant funded positions are depicted in the worksheets supplied for Bill 59. Operating revenue projections include an additional $ I Q i 85,000 in real property tax collections, an increase of $1,132,000 in new annual fees for abandoned vehicles, an additional 5382,000 in fuel taxes, and $2,028,000 in intergovernmental revenues Based upon the most recent projection from the Council of Revenues, Tansient Accommodations "fax (I'AT) revenue is estimated to be $15,781,000. However, interest income ("revenues and use of money ~md property") is expected to decline by $ L675,000 due to a record low investment market. Additionally, the Pund Balance Carryover is reduced by 5456,000 (7.4°/u). Annual debt service is calculaicd to increase by $1,780,000 and comprises 10.7"% of Hie budget.