COM 0111.000 2010-2012 - Laserfiche WebLink

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Honorable Members of the Hawaii County Council March 1, 2011 Page 9 Accounting Standards Board (GASB) Statement No. 45 payment, is a voluntary payment that some government entities in Hawaii have elected to pay at this time. The State of Hawaii has declined to make GASB 45 payments, while each of the four counties has made at least partial GASB 45 payments. For the past three years, the County of Hawaii has made full payment under GASB 45, making payments of $13.61 million in fiscal 2008; of $14.95 million in fiscal 2009; and $15.7 million in fiscal year 2010. This budget defers the scheduled fiscal year 2011 -12 GASB 45 payment, for a savings of $20.1 million. This deferral of payment will in no way affect present or future health benefits of our employees or retirees, and our plan is to resume the GASB 45 payments as the county's financial position improves. Miscellaneous • Payroll Lag. This budget for the first time implements a "payroll lag" for the County of Hawai `i, a step that has already been adopted by the state and each of the other counties. This plan will save the county $6 million in fiscal year 2011 -12. The county currently makes salary payments to public workers on the 15 and at the end of each month. Delaying each payment by a day or several days allows the county to push one payment from fiscal year 2011 -12 into fiscal year 2012 -13 for a one -time savings. Other Adjustments • PONC Payments. Fiscal year 2011 -12 marks the resumption of transfers equal to 2 percent of county real property revenues from the general fund to the Public Access, Open Space and Natural Resources Preservation Fund (PONC). Resuming the PONC transfers to fund the continuing acquisition of open space and coastal areas will result in a shift of $4.1 million out of the general fund and into the PONC fund in the year ahead. • Self - Insurance. Also included in this proposed budget is a transfer of $1 million from the general fund to the county's self - insurance fund to cover potential or existing claims against the county. The county did not transfer monies to replenish the fund in this fiscal year or last year, and the self - insurance fund has now been nearly depleted. • Solid Waste Fund. This budget increases the general fund subsidy of the solid waste fund by $4 million, a step necessary to adequately finance the continuing recycling and green waste programs as well as operation of landfills and solid waste transfer and recycling stations across the county. Total transfers from the general fund to the Solid Waste Fund to subsidize the solid waste management in the County of Hawaii will total $17.5 million in the year ahead.