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<br /> <br /> <br /> <br /> OV~SS^UF N~ <br /> William P. Kenoi William T. Takaba <br /> Mayor Managing Director <br /> ° Walter K. M. Lau <br /> °•ii°:-w~° Deputy Managing Director <br /> ~Ft of'w~'r <br /> County of Hawaii <br /> 25 Aupuni Street, Room 215 ° Hilo, Hawaii 96720 <br /> (808)961-8211 • Fax(808)961-6553 <br /> ^F <br /> a <br /> 0 <br /> February 27, 2009 ,i <br /> C~ T <br /> J Yoshimoto, Chairman and ~1 N :T <br /> Members of the Hawaii County Council <br /> --t r <br /> Hawaii County Council <br /> 25 Aupuni Street <br /> Hilo, HI 96720 y C <br /> c; cn <br /> Dear Chairman Yoshimoto and Council Members: r <br /> As required by the Hawaii County Charter, submitted with this message is the proposed <br /> operating budget for the County of Hawaii for the fiscal year ending June 30, 2010. <br /> This balanced budget includes estimated revenues and appropriations of $386,279,510, <br /> which is a 4.2 percent less than the current year's budget, and includes the operations of <br /> eleven of the County's special funds as well as the general fund. The budget does not <br /> include an increase in property taxes. <br /> Today we are confronted with a worldwide economic downturn that has hurt the tourism <br /> and construction industries. There is a consensus that this is the most severe economic <br /> upheaval in decades. In this environment, the County is forced to consider all options for <br /> balancing the budget in a way that maintains essential public services such as police and <br /> fire protection. <br /> <br /> Preparation of the budget involves estimating costs such as debt service, retirement and <br /> medical insurance requirements, and obtaining estimated expenditures from departments. <br /> <br /> While the need for services has continued to grow and a backlog of maintenance projects <br /> remains, the economic changes during the last year have impacted our County revenues <br /> with drops in real property tax values, reduced transient accommodations tax proceeds <br /> and reduced interest earnings. The challenge of next fiscal year's budget is to meet our <br /> core responsibilities and cover costs that are beyond our control by managing costs that <br /> are within our control and by identifying other sources of revenue. <br /> <br /> Departments were initially instructed to submit status quo spending plans that included <br /> limited inflationary increases. Subsequently, departments were asked to cut 10% of their <br /> budget, excluding base salaries and grant-funded expenses. Reductions in overtime <br /> expense, travel and training, contract services, equipment purchases and other items were <br /> <br /> Comm. No. ! 5 l <br /> Ref. To: FT <br /> <~F~ ` 3C„~ Ref' Date EB 2 72009 - <br />