HomeMy WebLinkAboutCOM 0458.002 2000-2002 ~~Sy,®s a~
Harry Kim William Takaba
"vfayor Director
/ Nancy E. Crawford
sir°•.
M
;:gip, Deputy Director
Coull~~ty of Iawaii
Finance Departanent
25 Aupuni Street, Room 118 Hilo, Hawaii 96720
(808)961-8234 • Fax (808)961-8248
January 10, 2002
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Y....l. ~
The Honorable Chairman James Y. Arakaki
and Members of the County Council ~
~
3
County of Hawaii 4'
Hilo, HI 96720 ~
Dear Chairman Arakaki and Council Members:
On January 9, 2002, Mayor Harry Kim presented to the County Council the
administration's revised revenue expectations and the action that it is taking to address
these changes.- This fiscal year, our latest figures indicate that the County's revenues are
expected to drop: by $5,106,303. The following is a breakdown:
Reyextue Reductions:
Fund Balance 2,371,855
Ialan~say Collection - 3,052,200
Transient Accommodations Tax (TAT) - 3,593,000
Other General Fund Decreases - 123,459
Subtotal: -$9,140, 514
Revexaue Increases:
I~H~L Delinquent Tax Collection 611,564
Health Fund Reserve Refund + 664,372
I~Iai~iloa Delinquent Tax Collection + 800,000
General Fund Revenue Increases + 671,275
Pubic Service Company Tax + 1,287,000
Subtotal: +$4, 034, 211
NET 1ZEDUCTI®N: -$5,106,303
The administration has been working since August with all County departments and
agencies to address the projected revenue shortfall by reducing budgeted expenditures.
We have also explored different ways to increase revenues. Based on what has been
accomplished, vie hereby submit three bills and one resolution to adjust the General
Fund, Solid ti~as~e Fund, Golf Course Fund, and County Housing Revolving Fund.
~f,
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The Honorable James Y. Arakaki
and Members bf the County Council
Page 2
January 10, 2002
GENERAL, l~'iT~1D
Revenues
Real Property ~4rxes. The delinquent tax accounts have been adjusted to reflect:
The paymen~ restructure of the Nansay delinquency (-$3,052,200)
The anticipated collection of delinquent tax for homestead lessees from the
Department ~f Hawaiian Homes Lands (+$611,564); and
The :anticipated collection of delinquent tax on the Hawaii Naniloa Hotel property
(+$800,000);
Public Service C~'ompany Tax (PSCT). The PSCT estimate has been revised to be more in
line with currents collections (+$1,287,000).
Transient Accommodations flax (TAT). The TAT estimate has been reduced to reflect the
latest TAT projection by the Council on Revenues (-$3,593,000).
Transfer from other Fund. Included here is the transfer from the County Housing
Revolving Fund'Ifor an unfulfilled mutual benefit agreement (+$500,000).
Fund Balance. LThe original budget estimate has been reduced to the actual amount of
carryover funds tom FY 2000-01 (-$2,371,855).
Health Fund Refund. This new revenue item accounts for the refund of the County's
share of the Stag Health Fund reserves (+$664,372).
Appr®praations
Departments, I ther than Police. Following various administrative directives,
departments ha a submitted budget adjustments resulting in the least impact on critical
programs ands ices. In submitting adjustments, departments were asked to evaluate:
The hiring o new staff;
Overtime an temporary assignments;
Reallocatior~;
Purchases o~new and replacement equipment;
Travel to conferences, seminars, and workshops;
Out-of--state .travel;
Contract ser~ices;
The possibil ty of delaying purchases;
Repairs and aintenance projects and contracts;
Projects and programs that have not yet been started;
Studies that an be delayed, etc.
It took three ma or attempts to obtain the reductions required to balance our budget. The
approved dep ental reductions total $2,642,318.
Police. The P lice Department's budget is being supplemented by $181,308 to cover
their projected udget deficit due to an increase in operating costs for utilities, fuel,
insurance, and f rensic services.
The Honorable 3~ames Y. Arakaki
and Members ~f the County Council
Page 3
January 10, 200
Transfer to Oth~r Funds. The subsidies to the Solid Waste Fund and the Golf Course
Fund have been deduced by $1,187,095 and $45,519, respectively.
Debt Service. he debt service transfer has been reduced by $584,069 to meet our debt
service obligati s after utilizing the excess available funds in the debt service funds.
Health Fund. ~'he Health Fund account is being increased by $176,390 due to the
underestimation Iofthe Health Fund premium increase.
Provision for Compensation Adjustment. This account is reduced to zero (-$1,005,000)
as the collective bargaining increases for the firefighters and UPW employees are
accounted for in~the affected departments' salaries and wages adjustments.
SOLID WASTE FUND
The adjustment to the fund balance estimate and the other reductions will have no
foreseen impact on operations, and thus, allow the subsidy from the General Fund to be
reduced by $1,1ffi7,095.
GOLF COU1~S~ FUND
The amendment to adjust the fund balance estimate to actual results in a decrease in the
General Fund subsidy.
COUNTY IIOI~SING INVOLVING FUND
The termination iof the Mutual Benefit Agreement between Waikoloa Heights Investment
Partners and the; County allows the $500,000, previously encumbered, to be returned to
the General Fungi.
We hope the abmve provides you with information needed to take appropriate action on
the enclosed bibs and resolution. Should you need further information, please let me
know. Thank yau.
Sincerely yours,
William T aba
Director of Finance
APPROVED:
G?
Harry Kim
Mayor
Enclosures
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