REP FC 051 04/21/2009 2008-2010 - Laserfiche WebLink

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REPORT OF THE COMMITTEE ON FINANCE DATE: Apri121, 2009 PLACE: Sheraton Keauhou Bay Resort & Spa 78-128 `Ehukai Street Kailua-Kona, Hawaii TIME: 12:34 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 151/Bill No. 36 Your Committee on Finance, to which was referred Bill No. 36, reports as follows: Bill No. 151, transmitted by Mayor William P. Kenoi via Communication No. 151, dated February 27, 2009, submits for consideration the proposed Operating Budget for Fiscal Year 2009-10, totaling $386,279,510 in estimated revenues and appropriations (Part I-Volume I), and includes the operations of eleven of the County's special funds as well as the General Fund. Also submitted is the Operating Budget Proposal (Part 1, Volume II), which describes the departments and their programs, program objectives, highlights, program measures, expenditures, and positions. Additionally, Communication No. 151.1 from Finance Director Nancy Crawford, dated February 27, 2009, transmitted a booklet containing reports titled Six Month Progress Report on Program Objectives for FY2008-09 and Final Status Report on Program Objectives for FY2007-08. These reports provide information to the Council to assist in the evaluation of program accomplishments during the first six months of the current fiscal year and for the previous 2007-08 fiscal year. The highlights of the operating revenue proposal is as follows: • Real Property Tax -Taxable real property values will decrease by 5.6% or $12.3 million, due to a 3.64% decrease in taxable values. • Fuel Tax -Fuel taxes are expected to decrease by 9.6%, or $800,000 due to a decrease in fuel consumption. • Revenue from Use of Money and Property -Interest revenues are expected to decrease by $4 million due to the low yield on investments, which is reflective of the current economy. • Intergovernmental Revenues -The increases in a number of grants are more than offset by the decreases in housing voucher assistance and transient accommodations taxes, resulting in a net decrease of $1.6 million. • Charges for Service. Overall revenues from this source are expected to increase by $870,000 with increases in automotive charges exceeding the decrease in construction permit revenue. • Other Revenues. Other revenues are expected to increase, primarily from the anticipated sale of Hamakua property budgeted for $8.2 million, as well as the $2 million transfer of funds from the Budget Stabilization Fund. • Fund Balance Carryover. Carryover savings are expected to decrease by approximately $10 million due to the current year's revenue shortfalls in TAT, real property tax, building permits and others. Fund Balance is expected to be much lower than last year, but we will continue to monitor and adjust in the May budget if necessary. FC REPORT NO. 51