BIL 211 Draft 02 2008-2010 - Laserfiche WebLink

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The Honorable Chairman J Yoshimoto and Members of the County Council May 5, 2010 Page 4 REAL PROPERTY TAX Real property tax assessments have been certified at $25.5 billion. The values are 9.35 percent less, or $2.63 billion, than fiscal year 2009 -2010 assessments and 13.51 percent or $3.99 billion less than FY 2008 -09 assessments. As stated in our March 1, 2010 submittal, the County is unable to maintain essential, core services with a $23 million reduction in revenues that would result from maintaining current real property tax rates. We are proposing a modified version of the fiscal year 2005 -2006 real property tax rates that would leave the homeowner and affordable rental tax rates intact. The average per parcel tax collection for agriculture, commercial, and hotel and resort classifications will be reduced to keep our small businesses strong. The proposed rates identified (Attachment 1) would result in real property tax revenue of $215,154,049, slightly below the collections budgeted for the current year. VACANT POSITIONS After unfunding 55 positions in the fiscal year 2009 -2010 budget, we have continued to review funded vacant positions to determine those that can be safely unfunded or partially funded for the upcoming budget year without adversely impacting County operations and services to the public beyond an acceptable level. This budget reflects the unfunding of 70 additional positions and partial funding of 43 more positions in fiscal year 2010 -2011. Partial funding represents a reduction in the salary budget for a position that may be vacant for a portion of the year. The total value of the unfunded positions, adjusted for furloughs, amounts to $2,770,356. The review process involved identifying funded vacant positions that were public safety, grant funded, and special revenue fund positions, as well as positions in the legislative branch. In addition to the importance of retaining funding for public safety purposes, it was recognized that most vacant positions in the Police and Fire departments are offset by new recruits, which are not separately funded. Positions that are funded by grants or special revenue funds do not impact the general fund budget. The remaining funded vacant positions were carefully reviewed individually. Normally, funds not expended because a position is temporarily vacant are used to cover the cost of vacation payouts for retirees and for the temporary assignment or overtime pay that may result from covering the vacant position until it can be filled. The savings resulting from unfunding additional general fund positions after the March 1, 2010 budget submittal have been placed in the general fund provision for cash -in -lieu of vacation account. OPERATIONAL CHANGES Organizational changes to be implemented July 1, 2010, will place the Automotive division under the Mass Transit Agency. This will consolidate similar activities in one County of Hawaii is an Equal Opportunity Provider and Employer.