COM 0216.002 2008-2010 - Laserfiche WebLink

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Page 3 Council's decision. What standards are we looking for in terms of level of service? It is a matter of priorities. In addition, there are some operational positions vacant which are critical to the County (for example the Controller). Negotiations with the Unions. Without a contract in place, the County cannot amend and institute furloughs. Because it is a statewide contract, there is not a whole lot the Mayor can do. • There is a Council Member proposing furloughs for all non-union employees. Taxes • Mr. Hoffmann asked for an idea of the amount gained if the property tax were increased $.50 across the board. Mr. Takamura calculated the amount to be approximately $14.3 million. • For the most part, homeowner's tax has gone up across the board even with the dropping property values, because their capped value remains significantly below the market. • Move timeshare up from a Class 2 (apartment) to Class 7 (resort). o Real property tax may not be able to differentiate between what is time share and what is not -Depending on where they're located, many timeshares may already be classified as resort. • Vehicle weight tax increase, excluding commercial vehicles. o With the funds going to mass transit and to the Elderly services • Increase Fuel tax o State is proposing a $.10 increase o May lead to increase in bus ridership • Proposing an increase to Driver's License Fee o Will bring approximately $380,000 • Mr. Hoffmann asked if there is some leeway on the contribution to our debt services. If we were to postpone payment to take care of the current budget shortfall, when we do pay it off in 2-3 years, it will be with cheaper dollars. o Ms. Sako explained that while we may be paying it with cheaper dollars, we will also be paying double or triple the amount. For example, instead of paying $15 million next year, we may be paying $45 million plus the original $ ] 5 million three years down, the penalties are so steep. o In addition, our audit and bond rating will be shot and our bond rating directly impacts our interest rate. Mr. Hoffmann asked if the debt service projected included unissued bonds already appropriated under general obligation? And if so, do we have to issue them? o Debt Service includes only those we expect to issue in the upcoming fiscal year. o We have minimized all we can. To do so would mean we physically stop work on projects (ie. Kona Civic Center, Waikoloa Workforce Housing) when the money runs out. Mr. Yagong noted that any savings realized would work opposite to what the projects bring to the community. Hamakua Lands Mr. Yagong asked, what happens if the Hamakua Lands do not sell? And the 2008 authorization to sell the land excludes 700 prime acres. Is it worth putting these lands in to balance the budget?