REP FC 064 04/30/2013 (2012-2014)

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FC -64 Page 2 April 30, 2013 • Public Utilities Franchise Tax — Increased public utility revenues are expected to result in an increase of $1.0 million, or 9.5% in franchise tax revenue. • Licenses and Permits — Increases in building permit revenue ($400,000), liquor license fees ($350,000) and vehicle weight tax revenue ($200,000) have contributed to an increase of $1.1 million, or 7.0% in this revenue source. • 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 • The Geothermal Relocation and Community Benefits Fund Appropriations are increased by $1.3 million for anticipated property purchases under the geothermal relocation program. • Salary and wage increases in many departments are the result of the ending of the furlough program. The increase is offset by other expenditure cuts in various areas. Public Safety • Fire. The Fire Department has increases of approximately $200,000, primarily for fire protection costs. • Liquor Control. Funds are budgeted to pay $350,000 of the cost to renovate the Hilo office and remove asbestos. Additional funds will be appropriated in subsequent years to complete payment of the full cost. • Prosecuting Attorney. Additional grant funding revenue of about $400,000 is anticipated and appropriated for various programs. • Highway Fund. An increase of approximately $200,000 results from the combination of ending the furlough program and adding a new traffic safety project. Debt Service • Transfer to Debt Service. In the current fiscal year the County experienced a temporary reduction in debt service expense. With the beginning of principal payments on bonds issued in 2010, the transfer to debt service is increasing. Pension & Retirement • Retirement Benefits. Contributions to the employee retirement system will increase by approximately 4.5% as the result of rate increases established by the state Legislature. Miscellaneous • Vacation Pay. This provision which assists with covering the cost of vacation payouts for employees separating from the County is reduced by $500,000.