REP FC 170 2014/05/01 (2012-2014)

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REPORT OF THE COMMITTEE ON FINANCE DATE: May 1, 2014 Re: Comm. No. 689/Bill No. 208 PLACE: Council Chambers Kona, Hawai`i TIME: 9:05 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No. 208, reports as follows: Bill No. 208, transmitted by Mayor William P. Kenoi, via Communication 689 dated February 28, 2014, submits for consideration the proposed Operating Budget for the County of Hawai`i for the Fiscal Year July 1, 2014 to June 30, 2015. This balanced budget includes estimated revenues and appropriations totaling $412,608,475 (Part I-Volume I), and includes the operations of eleven of the County's special funds as well as the General Fund. This budget is 2.3 percent larger than the budget in effect when Mayor Kenoi's administration took office in 2008. This budget reflects those efforts to control the cost of government while always maintaining essential police, fire and other core county government services. The Mayor's budget message discusses highlights of the operating revenues and expenditure proposals. It attaches informational tables comparing 1)budgeted expenditures for FY 2013-14 and proposed for FY 2014-15 for each fund; 2) a summary of projected FY 2014-15 revenues from various sources and the change in those from the current budget; and 3) a summary of projected FY 2014-15 expenditures and the change in those from the current budget. Also listed are significant changes to operating expenditures in several categories. Also submitted is the Operating Budget Proposal (Part I, Volume II), which describes the departments and their programs, program objectives, highlights, program measures, expenditures, and positions. Additionally, Communication No. 689.1 from Mayor William P. Kenoi, dated February 28, 2014, transmits a booklet containing reports titled Six Month Progress Report on Program Objectives for FY 2013-14 and Final Status Report on Program Objectives for FY 2012-13. 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 2012-13 fiscal year. The highlights of the operating revenue proposal are as follows: • Real Property Tax—Real property tax revenues are expected to increase by 5.9%, or $13 million, due to new construction and an increase in taxable values. FC Report No. 170