HomeMy WebLinkAboutCOM 0458.001 2000-2002Harry Kim
Mayor
January 10, 2002
County of Hawaii
Finance Department
25 Aupuni Street, Room I 18 • Hilo, Hawaii 96720
(808)961-8234 • Fax(808)961-8248
The Honorable Chairman James Y. Arakaki
and Members of the County Council
County of Hawaii
Hilo, HI 96720
Dear Chairman Arakaki and Council Members:
William Takaba
Director
Nancy E. Crawford
Deputy Director
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During Mayor Kim's presentation at the Council meeting on January 9, 2002, he was asked for
the following:
1. A copy of his presentation;
2. Departmental reductions;
3. Copy of presentation to legislature; and
4. Copy of figures presented.
Since Mayor Kim did not have a written presentation, I am enclosing a memorandum, with
enclosures, that Mayor Kim used as a basis for his presentation. The memorandum provides a
summary of the work performed by his administration to deal with the budget shortfall for FY
2001-02.
Under separate cover, we are also transmitting three bills and one resolution to adjust the
General Fund, Solid Waste Fund, Golf Course Fund, and County Housing Revolving Fund to
address the shortfall. The transmittal contains departmental reductions and our most recent
figures related to the shortfall.
We will also be providing each Council member with a copy of Mayor Kim's testimony to the
Senate Committee on Ways and Means and the House Committee on Finance by January 15,
2002.
Sincerelv yours.
William T&ba
Director of Finance
APPROVED:
AHarryK'
Mayor
Enclosures
Harry Kim
Mayor
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808) 961-8234 . Fax (808) 961-8248
Date: January 3, 2002
Re: Budget Shortfall, FY 2001-02
William Takaba
Director
Nancy E. Crawford
Deputy Director
Since September 14, 2001, your administration has been actively working with all county
departments to reduce our projected budget shortfall. The following are copies of
memorandums and instructions sent to respective departments to outline major initiatives
taken.
From Managing Director to all departments calling
Memorandum of September 14, 2001 mandatory meeting to discuss status of budget
and provide instructions on how administration will
deal with shortfall. Shortfall m $7.1 million
From Finance Director to all departments
Memorandum of September 17, 2001 explaon'ng details of revenue shortfall and asking
each department to submit a list of proposed
reductions.
Mayor and Finance Department staff explained
Meeting of September 18, 2001 memorandum of September 17 and gave
instructions on what needed to be done by
departments. Answered questions.
From Finance Director to all departments
Memorandum of October 17, 2001 requesting more reductions, with particular
emphasis on salaries and wages. Shortfall @ $1.8
million.
Honorable Marry Kim
'age Two
January 3, 2002
From Finance Director to all departments
announcing the creation of an Executive Review
Memorandum of November 7, 2001 Committee to evaluate and approve departmental
requests to fill positions, purchase major
equipment, and travel out-of-state. Shortfall
$1.2 million.
From Finance Director to all departments
Memorandum of November 14, 2001 explaining how the Executive Review Committee
will review requests.
From Finance Director to Mayor Harry Kim
Memorandum of November 23, .2001 reporting the status of our current operating
budget Due to reduction in TAT projections,
shortfall increased to $3.7 million.
From Finance Director to all departments
Memorandum of November 30, 2001 providing a list of all rzespective vacant positions,
asking for savings information on each position.
From Finance Director to all departments
Memorandum of December 14, 2001 accepting their ,budget reductions and updating
them on the current status of the budget Shortfall
$2.4 million.
Should you need anything further, please let me know. Thank you.
Enclosures
Harty Kim
Mayor
Couutp ofabiai`i
25 Aupuni Street, Room 215 - Hilo. Hawaii 96720-4252 - (808) 961-8211 - Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway-. Suite 103 - Kailua-Kona, Hawai'i 96740
(808)329-5226 - Fax(808)326-5663
September 14, 2001
MEMORANDUM NO. 2001-16
To: Department and Agency Heads
From: Dixie Kaetsu, Managing Director
Re: Mandatory Budget Meeting
Dixie Kaetsu
Managing Director
Peter T. Young
Deputy Managing Director
EPARTMFNT OF FINANCE
DATE
ROUTS TO:
Coin.
ACTION M':
FILE:
A mandatory meeting of all department/agency heads and deputies will be held as follows:
Date: Tuesday, September 18, 2001
Time: 1:30 p.m.
Place: Civil Defense EOC
The topic of discussion will be the current year's budget. Please bring a copy of your
department's budget, the status of your vacant positions, and information on planned
equipment purchases. Be prepared to participate in a discussion about possible adjustments to
the fiscal 2001-2002 budget.
For your information, the regular cabinet meetings scheduled for September 20 and 27 are
cancelled.
If you have any questions, please call me.
Harry Kim
Mayor
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808) 961-8234 . Fax (808) 961-8248
Memorandum
To: All Department and Agency Heads
From: William Takaba, Director of Finan
Date: September 17, 2001
Re: Budget, FY 2001-02
William Takaba
Director
When the budget for fiscal year 2001-02 was submitted to the County Council in March,
three major uncertainties in revenue projections existed:
The collection of $3.9 million from the County's largest delinquent real property tax
account, Nansay Hawaii, Inc.;
2. The Fund Balance carryover in the General Fund reaching $10 million; and
3. The County receiving its share, $4.143 million, of the Public Service Company Tax.
As many of you know, the collection of the Nansay delinquency is expected to be spread out
over four (4) years, which means that the full $3.9 million will not be realized this year. The
Fund Balance is also less than our revised projection of $7.8 million. The Public Service
Company Tax, on the other hand, is not expected to change. Finally, we received word that
the Council on Revenues this month revised its revenue estimate of the Transient
Accommodations Tax (T47), which amounts to a reduction of the county's share by $1
million. With the recent disasters in New York and Washington, the TAT is likely to decline
further.
These anticipated revenue reductions must be addressed immediately, and we would like to
accomplish this in ways that have the least impact on critical programs and services. But
this will be a challenge --and it will take everyone's cooperation and assistance.
We are asking each department to evaluate your current year's budget and submit a list of
proposed reductions on the enclosed Proposed Budget Reductions form on or before
September 30, 2001. Between September 30 and October 15, the administration will then
evaluate each department's list to determine if anything further needs to be done.
Appropriate budget changes will then be made.
All Departments and Ag,- :les
Page Two
September 17, 2001
In preparing your list of reductions, it would be helpful for you to evaluate the following:
1. The hiring of new staff;
2. Overtime and temporary assignments;
3. Reallocations;
4. Purchases of new and replacement equipment;
5. Travel to conferences, seminars, and workshops;
6. Out-of-state travel;
7. Contract services;
8. The possibility of delaying purchases;
9. Repairs and maintenance projects and contracts;
10. Projects and programs that have not yet been started;
11. Studies that can be delayed; etc.
The department of finance staff is available to assist you and your staff in completing this
important assignment. Please feel free to call on us. Thank you very much for your
patience and support in this difficult time.
wt
Enclosure
cc: Nancy Crawford
All Divisions, Department of Finance
Approved:
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Haig+ Kim
!Mayor
William 'Takaba
Director
We would like to take this opportunity to thank all departments for your cooperation in
helping us address our anticipated budget shortfall. As we mentioned in our memorandum
of September 17, the administration would evaluate each departments reductions to
determine if anything further needs to be done once all proposals Were received. Although
we know that a sincere budget -cutting effort Was made by each departiiient, we still need
another $1.0 million to balance.
The area of major concern is salaries and wages. We would like each department to re-
evaluate your initial reduction proposal for salaries and wages and resubmit this information
on the enclosed S&W Reduction Worksheet. As you Will note, this task focuses on funded,
but unfilled, positions. We hope that by postponing, or at least staggering, the filling of
certain non-essential positions, more savings will be achieved. For everyone's information,
Mayor Kim met with public worker unions on Monday to inform them of the seriousness of
our budget position and let them know that we will do everytpaing we can to prevent reduction
in hours and/or laying off existing employees.
Also enclosed is a Proposed Budget Reductions form that you may use to include other
items that were not included in your original submittal. Can certain large purchases be
delayed? So in conclusion, we are $1.8 million short, you need to resubmit S&W
information on the enclosed S&W Reduction Worksheet (this will nullify the S&W information
previously sent), and you may add new reductions on the Proposed Budget Reductions
form.
Should you have any questions, please call Gary Takamura or me. Thank you very much.
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Enclosures
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Budget, FY 2001-02
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We would like to take this opportunity to thank all departments for your cooperation in
helping us address our anticipated budget shortfall. As we mentioned in our memorandum
of September 17, the administration would evaluate each departments reductions to
determine if anything further needs to be done once all proposals Were received. Although
we know that a sincere budget -cutting effort Was made by each departiiient, we still need
another $1.0 million to balance.
The area of major concern is salaries and wages. We would like each department to re-
evaluate your initial reduction proposal for salaries and wages and resubmit this information
on the enclosed S&W Reduction Worksheet. As you Will note, this task focuses on funded,
but unfilled, positions. We hope that by postponing, or at least staggering, the filling of
certain non-essential positions, more savings will be achieved. For everyone's information,
Mayor Kim met with public worker unions on Monday to inform them of the seriousness of
our budget position and let them know that we will do everytpaing we can to prevent reduction
in hours and/or laying off existing employees.
Also enclosed is a Proposed Budget Reductions form that you may use to include other
items that were not included in your original submittal. Can certain large purchases be
delayed? So in conclusion, we are $1.8 million short, you need to resubmit S&W
information on the enclosed S&W Reduction Worksheet (this will nullify the S&W information
previously sent), and you may add new reductions on the Proposed Budget Reductions
form.
Should you have any questions, please call Gary Takamura or me. Thank you very much.
M
Enclosures
DEPARTMENT OF FINANCE
S&W REDUCTION WORKSHEET
FY 2001-02
DEPARTMENT: DIVISION:
CONTACT: PRONE: DATE:
FISCAL PERIOD FROM: JULY, 1, 2001 To: JUNE 30, 2002
SALARIES & WAGES RE-EVALUATION
UNENCUMBERED BALANCE AS OF 9/30/01:
L
LESS FUNDS NEEDED FOR CURRENT STAFFING: -$
LESS FUNDS NEEDED FOR UNFILLED POSITIONS (SEE BELOW): -$
In ortnadgA on Un filled Positions (In determining the number of
months needed for a position, please consider delaying hiring for as
long as practical.)
Unfilled Positions
Budgeted Number
Monthly of Months
Salary Needed
Anticipated
Needs
FY 2001-02
Total:
$
BALANCE:
LESS ADDITIONAL OVERTIME/MISCELLANEOUS NEEDED: -$
REVISED S&W REDUCTION:
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Karry Kim
Mayor
County of Hawaii
Finance Department
25 Aupani Street, Room 118 - Hilo, Hawaii 96720
(808) 961-8234 • Fax(808)%1-8248
!William Takaba
Director
Nancy E. Crawford
Deputy Director
We appreciate the effort made by each department to reduce your current year's budget.
Unfortunately, after two rounds of reductions we are still $1.2 million short. If nothing more is
done, this amount will increase as our revenue projections expectedly decline.
As a result of our budget position, Mayor Kim has created an ad hoc Executive Review
Committee (ERC) to evaluate and approve requests to fill positions, purchase major
equipment, and travel out-of-state. The FRC will be comprised of the Managing Director
and representatives from the Corporation Counsel Office and the Civil Service and Finance
Departments. Effective immediately, the following policies shall apply to items budgeted in
the General, Solid Waste, and Golf Course f=unds:
1. All unfilled positions should remain unfilled for the balance of this fiscal year, unless
hiring commitments have already been made. Positions that you consider vital to county
operations may be submitted to the ERC for appropriate action.
2. All eguigment gurchases over 11 000 should be properly justified. These requests will
be forwarded by the Finance Department to the FRC for appropriate action.
3. Out-of-state travel to conferences and workshops will not be allowed unless tickets
have already been purchased. Out-of-state travel for other purposes must be well -
justified and will be forwarded by the Finance Department to the ERC for appropriate
action.
These policies will be discussed at the cabinet meeting on November 8, 2001. Questions
may be brought up at that time. Thank you very much for your cooperation.
Approved:
f f
Marry Kim, Mayor
Harry Kim
Mayor
ACCOUNTS 4O
BUDGET
PURCHASING S
REAL PROPERTY TAX--Hf?dna
TREASURY
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808)961-8234 • Fax(808)961-8248
Memorandum
To: All Department and Agency Heads
From: William Takaba, Director of Finan
Date: November 14, 2001
wa Executive Review Committee
William Takaba
Director
Nancy E. Crawford
Deputy Director
The Executive Review Committee (ERC) was recently established as an ad hoc group to
address the county's budget shortfall. The ERC will review and take action on department
requests to tall or reallocate positions, purchase equipment over $1,000, and send staff on
trips out-of-state. Note that reallocations have been added to the list of items needing ERC
approval. The ERC consists of the Managing Director, Director of Personnel, Corporation
Counsel, and Director of Finance.
Although most requests were denied in our first meeting, departments may resubmit if it can
show that the expenditure will be to:
1. Fulfill a legal requirement;
2. (Meet an extreme public safety need;
3. Reduce other expenses;
4. Fulfill a required department function;
5. Prevent loss of future revenues; and/or
6. Will have little or no financial impact on the General, Solid Waste, or Golf Course Funds.
Decisions are made on how well each request addresses the above. It is also important to
describe the negative impact on the county if approval is not given.
We look forward to working with you and will be happy to address any questions or
concerns that you may have. Our next meeting is scheduled as follows:
Date: Wednesday, November 21
Time: 12 noon
Place: (elections Conference Room
Thank you.
cc: Nancy Crawford
Emma Sousa
N
N
Harry Kim
Mayor
County of Hawaii
Finance Department
25 Aupuni Stmet Room 118 • Hilo, Hawaii 96720
(808) 961-8234 • Fax (808) 961-8248
To: Harry Kim, !Mayor
County of Hawaii
From: William Takaba, Director of Ort inane
Date: November 23, 2001
Re: Status of Operating Budget
FY 2001-02
illiarn Takaba
Director
Nancy E. Crawford
Deputy Director
Enclosed as you requested is a report on the status of our current operating budget. Should
you need further information or have questions, please let me know. Thank you.
0
Enclosure
County of Hawaii
Status of the Operating Budget
FY 2001— 02
November 23, 2001
INTRODUCTION
The FY 2001-02 Operating Budget for the County of Hawaii includes revenue projections that
have dropped significantly since it was submitted and approved in May 2001. This report
describes the extent of the reductions and the steps that the administration is taking to address the
shortfall.
REVENUES
The following is a summary of revenue changes:
Source
Fund Balance
Nansay Tax Collection
Transient Accom. Tax
May 2001 Projection Current Projection
$ 7,830,000
$ 3,885,000
$16,557,000
$ 5,458,000
$ 832,800
$12,964,000
Difference
-$2,372,000
-$3,052,200
-$3,593,000
Total: -$9,017,200
Fund Balance. The Fund Balance estimate in May was $7,830,000. The actual Fund Balance is
$5,458,000, $2,372,000 less than budgeted.
Nansay Tax Collection. The County planned to foreclose on the Kohanaiki properties and
included an anticipated collection of $3,885,000 in its FY 2001-02 budget. In an effort to
prevent foreclosure, the property owner, Nansay Hawaii, Inc., and the County agreed to a 4 -year
payment plan. in September. This "Forbearance Agreement," requires the owner to pay the
County $277,600 per quarter until the delinquency, which includes penalties and interest, is paid
in full.
Although we are pleased to have reached an agreement with Nansay Hawaii, Inc., the County
expects to collect $832,800 this year rather than $3,885,000--a $3,052,200 less than budgeted.
Transient Accommodations Tax. At the time the budget was submitted, the Transient
Accommodations Tax (TAT) estimate for Hawaii County was $16,557,000. In September, the
Council on Revenues revised its TAT estimate downward, which amounted to a $1,051,000
reduction in Hawaii County's share. As a result of the terrorist attack on September 11"', the
TAT estimate dropped even further. The November estimate for the County's share of the 'FAT
is $12,964,000, or $3,593,000 less than budgeted.
In total, we expect revenues in our current Operating Budget to drop by $9,017,200.
Status of the Operating Budget
November 23, 2001
ADMINISTRATIVE ACTION
The administration began addressing the projected shortfall in mid-September when information
on the actual Fund Balance, the Nansay tax collection proposal, and the new TAT projections
were known. At that time, it was decided that every effort would be made to reduce
expenditures without jeopardizing programs vital to protecting the health and safety of our
residents.
Budget Reduction Instructions, September 17, 2001. On September 17, a memorandum (copy
enclosed) was sent to all departments by the Director of Finance informing there of the County's
reduced revenue expectations, and asked each department to submit proposed budget reductions
before the end of the month. In preparing reductions, the departments were asked to evaluate the
following:
1. The hiring of new staff;
2. Overtime and temporary assignments;
3. Reallocations;
4. Purchases of new and replacement equipment;
5. Travel to conferences, seminars, and workshops;
6. Out-of-state travel;
7. Contract services;
8. The possibility of delaying purchases;
9. Repairs and maintenance projects and contracts;
10. Projects and programs that have not yet been started;
11. Studies that can be delayed; etc.
The projected budget shortfall stood at $7.1 million at the time.
Department head meeting on Budget, September- 18, 2001. On September 18 a mandatory
meeting of all department heads and deputies was held to discuss the status of the budget and
our letter of September 17. A copy of the meeting announcement and PowerPoint presentation
are enclosed.
Administrative Meeting with Union Leaders, October 15, 2001. On October 15 Mayor harry
Kinn met with leaders of the public worker unions to inform there of the County's fiscal
condition and assured them that we will do everything we can to prevent worker layoffs or
furloughs. If layoffs or furloughs take place, it will be after every other paeans to reduce our
budget have been explored. The unions were also asked for their ideas on how they feel the
budget shortage should be addressed. One written response was received from the United Public
Workers Union, Their suggestions were passed on to the affected departments.
Second Budget Reduction Instructions, October 17, 2001. On October 17 a second
memorandum (copy enclosed) was sent to all departments by the Director of Finance informing
thein that although major budget reductions• and adjustments had been arcade, we were $1.8
million short.
Status of the Operating Budget
November 23, 2001
Another effort was needed by all departments to reduce costs, particularly in salaries and wages.
Each department was asked to re-evaluate its initial reduction plan for salaries and wages and
resubmit this information. This task would focus on funded, but unfilled positions. We hoped
that by postponing, or at least staggering, the filling of certain non-essential positions, more
savings would be achieved.
Executive Review Committee Established, November 7, 2001. At the end of our second
attempt to reduce expenditures through departmental initiatives, the budget was still $1.2 million
short. It was then decided that an administrative committee was needed to review and control
significant department spending. On November 7, all departments were sent a memorandum
(copy enclosed) informing them of the establishment of an Executive Review Committee (ERC)
that would evaluate and approve all requests to fill positions, purchase expensive equipment, and
travel out-of-state.
• Unfilled position would remain unfilled unless first approved by the ERC.
• Equipment purchases over $1,000 would need ERC approval.
-- • Out-of-state travel to conferences would not -be- allowed. Out of state travel for other
purposes would need ERC approval.
Appointed to the ERC were the Managing Director, Director of Personnel, Corporation Counsel,
and Director of Finance.
It was determined that to be approved, a request must, at a minimum_
• Fulfill a legal requirement;
• Meet a public health or safety need;
• Reduce other expenses;
• Perform or support a vital County function; increase revenues;
• Prevent loss of revenues; or
• Have no impact on the General, Solid Waste, or Golf Course Funds.
A memorandum informing departments of this was sent on November 14 (copy enclosed). It
also informed departments that besides the filling of positions, the ERC must also approve
reallocations. The ERC meets weekly.
On November 14, we were also made aware of the most recent reduction in our projected TAT
($12,964,000), that added another $2.5 million to our $1.2 million shortfall. The County of
Hawaii's budget shortfall is now projected at $3.7 million.
Retirement System Contribution. This year, the County's employees retirement system
contribution increased by $7.3 million, which placed a tremendous strain on our budget. We will
be seeking to delay payment of our second half installment.
Initiatives to Increase Revenues. While every effort is being made to reduce expenditures, the
administration is also seeking more revenues. We continue to work with delinquent taxpayers,
such as Hawaiian Homes Lands lessees and the Hawaii Naniloa Hotel in trying to increase
Page 3 of 5
Status of the Operating Budget
November 23, 2001
collections; we plan to sell real property owned and not needed by the County, such as the Hilo
Lagoon Centre and the Hamakua lands; and we are proposing needed and sensible changes to
our real property tax laws that generate more revenues and close tax "loopholes";
• Tax Delue: Hawaiian Homes Lands. The administration has been working with the
Department of Hawaiian Home Lands (DHHL) since April 2001 to address various issues of
mutual concern. One substantial issue is the settlement of delinquent real property taxes on
Hawaiian Homes Lands. Through an agreement recently established, the DHHL will pay the
County $611,564 in tax delinquencies of its homestead lessees if the County waives
$603,245 in penalties and interest on these delinquencies.
A resolution to authorize this settlement must be approved by the County Council. It passed
the Finance Committee on November 20, 2001. If it passes the full Council, payment should
be received in April 2002.
• Tax Deligguency: Hawaii Naniloa Hotel. We entered into a payment agreement with
Nakano Co., Ltd. on .lune 28, 2001 to collect a-$7-5--1,691 real property tax delinquency on the
Hawaii Naniloa Hotel. In this agreement, Nakano Co., Ltd. pays the County $10,000 per
month until a 55 -year state lease is granted on the delinquent properties and the liability is
paid in full. The lease will hopefully be finalized in March 2002, at which time the County
should receive full payment on the delinquency.
• Sale of Ileal Property: Kilo Lagoon Centre. We will be sending a resolution to the County
Council to authorize the administration to sell its Filo Lagoon Centre offices. The sale will
take place after the departments using these offices relocate to the new Aupuni Center and
the County building. Unfortunately, the sale may not take place during this fiscal year.
Sale of Real Property: Hamakua Lands. The administration will also be exploring the
possibility of selling lands that the County owns in Hamakua. These lands were obtained
from the Hamakua Sugar Co. as a result of a rollback tax settlement when the company went
out of business in the early nineties.
• heal Property Tax Change: The Minimum Tax. The administration recently submitted a bill
to the County Council to increase the minimum real property tax to $100, with certain
exceptions. This would have added $2.4 million to real property tax revenues. This bill was
slightly modified by the Finance Committee, but is expected to pass. If it does, revenues will
increase by $2.1 million next fiscal year.
Real Property Tax Change: Others. Besides the minimum tax, staff of the Department of
Finance and Corporation Counsel, and have been meeting twice a month to review other
changes that are needed to improve our tax laws and processes, and possibly close some
"loopholes". Specific areas include the agricultural tax program, dedications, exemptions,
tax rates, and appraisal methods.
Page 4 of 5
Status of the Operating Budget
November 23, 2001
CONCLUSION
The County's revenue expectations have dropped by $9,017,200 since the Operating Budget for
FY 2001-02 was submitted and approved in May. Fortunately, the administration has been
working aggressively to mitigate the impact of the reductions even before the fiscal year began.
• We have been working closely with our major delinquent taxpayers to establish payment
plans that are both practical and reasonable.
• We continue to scrutinize the spending of various departments to ensure that expenditures are
necessary and reasonable.
• We are making changes to real property tax laws and procedures to make sure that benefits,
rates, and procedures make sense; and we plan to close "loopholes" for those who should not
receive benefits.
• We are exploring the sale of properties that the County does not need.
Although we are still $3.7 million short, progress is being made to reduce our deficit. But we
- --will need the help and cooperation of everyone to prevent- the worst from happening—having to
Jay off or furlough our workers.
Page 5 of 5
Harry Kim
Mayor
Memorandum
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 a Hilo, Hawaii 96720
(808)961-8234 • Fax(808)961-8248
To: klill
AllD and Agency Meads
IFroDirector of Finance
Date: November 30, 2001
Re: Budget, FY 2001-02
William Takaba
Director
Nancy E. Crawford
Deputy Director
County Clerk
Mayor's Office
Corporation Counsel
Finance
Planning
Data Systems n
Housing („s
Transit
Police N
Fire C'
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Liquor Control
Prosecuting Attorney
Public Works
Parks & Recreation
Environmental Mgmt
Our records indicate that the positions on the enclosed list are currently vacant in your
department or agency. We would appreciate the information below on each position. You
may report directly on the enclosed list using the codes below.
1. Funding Source:
• C = County
• F =Federal
• S =State
• O = Other
2. Current Status (mark all that apply):
• 1 = Do not intend to fill.
• 2 = Position currently filled by someone on T.A.
• 3 ® Position currently filled by limited term or provisional hire.
• 4 = Need to fill position, but did not begin process.
• 5 = Request to fill submitted.
• 6 @ Request to fill approved; Civil Service now recruiting.
• 7 = Recruitment complete; interviews being scheduled and/or taking place.
• 8 = Interviews complete; person selected and hired.
3. Net Reduction (calculate per below, but report only net reduction on submittal):
• Annual Savings if Position Not Filled Before 6/30/02:
• Amount Already Included in Previous Budget Reduction:
• Net Reduction for This Position:
I
All Department and Agency Heads
Page Two
November 30, 2001
4. Savings from Anticipated Vacancies This Fiscal Year (may be added to personnel list or
reported separately):
• Position:
• Date Vacancy Will Begin:
• Net Annual Savings if Position Not Filled Before 6/30/02: $
Please submit this information to the Dept. of Finance by December 14, 2001. Should you
have any questions, please call Nancy Crawford at 961-8085. Thank you.
nc
Harry Kim
Mayor
County of Hawaii
Finance Department
25 Aupuni Street, Room 118 • Hilo, Hawaii 96720
(808)961-8234 • Fax(808)961-8248
Memorandum
T®: All Department and Agency Heads
From: William Takaba, Director of Finan X�04�
Date: December 14, 2001
Re: Budget, FY 2001-02
William Takaba
Director
Nancy E. Crawford
Deputy Director
We would like to take this opportunity to thank you and your staff for your cooperation and
patience as we work toward balancing our budget. As we announced in our cabinet
meeting on December 12, all proposed reductions have been accepted.
We recognize that some adjustments must be made due to unforeseen needs that have
arisen. If this applies to your department, please submit your changes to Gary Takamura,
Budget Administrator.
Due to the large reduction in projected revenues from the Transient Accommodations Tax,
our budget deficit recently increased to $3.7 million. However, with the anticipated receipt of
$611,000 from the Department of Hawaiian Home Lands for delinquent taxes of homestead
lessees, and an expected $660,000 refund from the State Health Fund reserves, our deficit
is now optimistically about $2.4 million.
The administration is continuing to make every effort to increase revenues to avoid having to
take more drastic cost-cutting measures.
• We hope to collect about $800,000 in March for the Hawaii Naniloa Hotel tax
delinquency.
• We plan to sell or lease the Hilo Lagoon Centre and some Hamakua lands.
• We may collect the entire Kohanaiki delinquency if a sale on the property materializes.
The ownership question should be settled this month.
Through the Executive Review Committee, we continue to scrutinize major expenditures.
Although a large deficit is still projected, progress is being made toward eliminating it, and
we thank you for helping us. Should you have any questions — or $ugge$tion$ — please
call me.
wt
cc: Harry Kim, Mayor
Gary Takamura, Budget Administrator