REP FC 217 05/01/2012 2010-2012 - Laserfiche WebLink

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FC -217 Page 2 May 1, 2012 • Fuel Tax — Fuel tax revenue is expected to increase by 14.5% to $7.7 million, as fuel consumption has increased over anticipated levels. • Public Utilities Franchise Tax — Increased public utility revenues are expected to result in an increase of $1.2 million, or 13.2% in franchise tax revenue. • Revenue from Use of Money and Property — Interest earnings are expected to continue to decrease for next fiscal year by $0.5 million, due to the low yield on investments, which is still reflective of the current economy. • Fund Balance Carryover — The higher projection of carryover savings is attributed to the cumulative effect of successful cost cutting measures for the past several years and additional spending restrictions in the current year. The highlights of the operating expenditure proposal are as follows: General Government • General savings in the proposed budget were achieved through many sacrifices across all administrative departments, from further reduction of travel, training and contracted services to reductions in supplies and continued postponement of equipment purchases. Fuel and utility costs continue to fluctuate, and the oil market will be monitored and budget items adjusted if necessary prior to the May submittal. Corporation Counsel's special counsel account was significantly reduced, as was funding for Property Management land acquisition related services. Research and Development was able to eliminate some costs from the current year budget for APEC-related activities. The reductions in General Government expenditures touched all departments in this classification. Highways and Streets • Highways. The Department of Public Works is earmarking an additional $500,000 for work on roads -in -limbo, increasing the budget from $1.5 million to $2.0 million. Additionally, Highway Maintenance division is budgeting approximately $1.0 million for new and replacement equipment for road maintenance. Health, Education and Welfare • Social Services. Despite declining revenues and reductions in spending, the county's budget for non-profit agencies will remain at $1.5 million in 2012-13. We have protected this funding despite three years of budget cuts because of our commitment to the non-profit organizations that support the most vulnerable in our community. Culture and Recreation • Parks and Recreation. The Lava Viewing program at Kalapana is being phased out, resulting in a savings of $300,000. Discontinuation of the West Hawaii Golf Subsidy program will provide a budget reduction of $500,000. Sanitation and Waste Removal • Solid Waste Fund. Some repairs to facilities projects will be transferred to the Capital Projects fund, reducing operating expenses by over $800,000. Equipment lease expenses were reduced by approximately $600,000 as some financing leases were completed. Solid Waste and Recycling contracts for services were also reduced by a combined amount of over $800,000.