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HomeMy WebLinkAboutCOM 0533.020 2000-2002 Kitn Dixie Kaetsu Mayor Managing Director a~sl°.. ~ Peter T. Young Deputy Managing Director ~ur~tp ~o~ ~ba~i `i ` ~ ~ i}~; i ~ ~ ~ ~ 25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 961-8211 • Fax (808)961-6553 KONA: 75-5706 Kuaicini Highway, Suite 103 • Kailua-Kona, Hawaii 96744 (808) 329-5226 • Fax (808) 326-5663 t ~ ~ May 3, 2002 The Honorable Chairman James Y. Arakaki and Members of the County Council County ofHawai`i Kilo, Hawaii 95720 Dear Chairman Arakaki and Council Members: As required by the Hawaii County Charter, I am submitting to you with this message the amended operating budget proposal for the County of Hawai` i for the fiscal year ending June 30, 2003. This balanced budget includes estimated revenues.and appropriations of $205,258,726, and includes the operations of eleven of the County's special funds as well as the general fund. The earlier budget proposal submitted to you on March 1, 2002 included revenue of $8.1 million to be raised through a real property tax increase. Since March, we have been looking at all of the County's operations to see what other revenue sources can be developed to cover costs and decrease the burden on taxpayers. The revenue shortage to be generated by a proposed tax increase has dropped to $7.6 million in the current submittal. I would like to commend the Council for its concern about the County's fiscal situation, and for the serious and productive discussions that have been taking place since the March budget was submitted. Budget highlights follow, with further details shown in the various schedules attached to this message. 12evenues Motor Vehicle Fees A decision has been made to create a motor vehicle registration fee that will go to the general fund, and will make the Treasury Division motor vehicle registration function self-supporting. The additional revenue is estimated at $542,000 annually. A bill to implement this measure has been submitted to you for approval. Golf Course Fees We have also looked at the operations of the Hilo Municipal Golf Course, and are proposing an increase in green fees and monthly cards. This administrative action will go out for public hearing in June. The fee proposal is a two-year plan that will generate (iQtl'iln, I~d~ ~ ' . ~ / / ~ File I~Io. . , ~f. To: / ~~~^~A The 1-€onorable James Y. Arakaki Page 2 May 3, 2002 an estimated $175,000 more for the golf course next year. Flowever, the budget is presented to you unchanged at this time. At least some of the increased fees will remain with the golf course to allow badly needed maintenance to be done. Grants Projected grant and forfeiture revenues have increased by $1.5 million over the March estimate. The largest amounts are for the following: • Fire Operating and Safety, $152,948 • Special Aging Cprant, $150,000 • Product Development Program, $600,000 • Prosecutor's Forfeiture Account, $100,000 • Waste Reduction and Recycling, $400,000 Please note that higher grant revenues increase the overall budget, but are offset by corresponding increases in dedicated expenditures. Fund Balance Another major change in revenues is a reduction by $450,000 of the projected fund balance carryover. This is consistent with our latest evaluation of current year operations. Eapenclitaeres Along with the above changes in revenue projections, there have been adjustments to the estimated expenditures. The most significant are shown below: • Police auto insurance increase, $171,281 • Executive pay increases, $159,500 • Fiscal sofl:ware lease, $100,000 • Solid V6~aste subsidy for equipment leases, $109,000 • Park Planner position, $50,940 • Iianama Place rent reduction, ($27,000) Real Pr®perty Taaes Eased on the final real property assessment date, and ailer consideration of these revenue and expenditure adjustments, the amount of real property taxes to be raised through a tax increase is $7.6 million, down from $8.1 million in March. In a separate transmittal, I am presenting a tax rate proposal that will generate the tax revenues needed to cover the cost of County SerV1CeS. The Honorable James Y. Arakaki Page 3 May 3, 2002 SuYnmaY-y Our short-term goal continues to be to maintain services in all districts of the Big Island. We realize, however, that we must also begin to strengthen our financial base so that for the longer term, the County of Hawaii can start improving our services and facilities that have been long neglected. In my budget message of March 1, 2002, I stated that while the County's level of funding remains status quo, our level of services is actually decreasing as a result of long-standing spending restrictions. Our status quo budget has certainly made us counterproductive. But I believe we can turn this situation around by continuing to improve our tax laws and policies, and updating the rates and fees that we charge. Once these are done, I am certain that appropriate levels of services can be provided for every community on this island and we can reduce the inequities that exist. My administration is committed to doing this. We have already established real property tax delinquency, collection and overpayment procedures, submitted a bill to increase the minimum tax, and began evaluating our agricultural tax program. We also completed new rate and fee structures for real property tax, vehicle registration, and the golf course. In FY 2002-03, we will do more, and plan to develop the following: • Proposals to improve Hawaii County's agricultural dedication program that includes establishing a clear definition of purpose, clarifying and improving program requirements, and assigning more appropriate values for dedicated land; • Improvements to our methods of appraising real property; and • Proposals to make the County's real property tax system fairer to prevent homeowners from being "taxed out of house and home." Consideration will be given to changing the homeowners' exemption amount to a percent of property value. To accomplish this, we must again ask for your help and support. My staff and I look forward to working with you as we continue to make Hawaii a nicer place to live. Aloha, Harry Kim MAYOR Attachments NAR12A°TIV~ ~~tY OF` ~~G~°I` F,lvlEI~1N~~ O~'~I2~,°~~NCs ~UDG~`I` 2002-2003 GENERAL FUND REVENUES: Real property tax revenues have been adjusted to reflect the certified net taxable real property values and the changes in the tax rate. County registration fee, a charge for processing vehicle registration, has been added as a new revenue source. In intergovernmental revenues, several changes have been reflected. The grant estimate for Gun Violence Prosecution has been reduced and the HI Impact grant has been reclassified. In addition, we have added grants for Volunteer Fire Assistance, Fire Operations & Safety, Aging, Start Living Healthy Campaign, Product Development and Kalapana Lava Viewing. A forfeiture account for the Office of the Prosecuting Attorney has been added to account for funds from the Federal Equitable Sharing Agreement. The revenue estimate from employee parking stalls has been revised to reflect the fee increase. The ERS reimbursement from the Department of Water Supply has been revised downward and a fringe reimbursement account from federal programs has been added. The fund balance carryover has been adjusted downward to reflect our updated carryover projection. EXPENDITURES: COUNTY CLERK COUNCIL The salaries and wages account has been amended to reflect the increase in Council Member's salaries as granted by the Salary Commission. OFFICE OF MANAGEMENT The budget of the Office of Management has been amended to include the executive pay increases and the funds for the Cost of Government Commission. DATA SYSTEMS The Data Systems` budget amendments include a) the executive pay adjustment, b) the revised salary requirements, and c) the reduction in telephone data line charges. FINANCE The Finance Department's budget has been amended to reflect a) executive pay increases, b) lease payment for a new fiscal software system, c) postage increases in the Treasury and Real Property Tax divisions, and d) contracting of appraisers for tax appeals. CORPORATION COUNSEL The budget amendment accounts for executive pay adjustments. PLANNING The budget amendment accounts for executive pay adjustments. CIVIL SERVICE The Civil Service Department has adjusted its budget to reflect executive pay increases and reductions in their operating expenses. RESEARCH AND DEVELOPMENT R & D has added two (2) new grant programs, Product Development and Kalapana Lava Viewing, and has adjusted the salary for the Director. PUBLIC WORKS The salaries of the Director and Deputy Director of Public Works have been amended. In addition, the rent for Hanama Place and the Administration's computer needs have been reduced. POLICE Adjustments for increase in executive pay and in auto insurance have been included in the amended Police budget. FIRE The Fire Department has added two (2) new federal programs, Volunteer Fire Assistance and Fire Operations & Safety. The budget also reflects salary adjustments for executive pay increases and HazMat Team premium. PROSECUTING ATTORNEY The Prosecutor's Office is amending its budget to reflect a) the executive pay increases, b) the reduced grant estimate for Gun Violence Prosecution, and c) the new account for forfeitures associated with the Federal Equitable Sharing Agreement. MASS TRANSIT The amendment adjusts the salary of the Transit Operations Administrator. OFFICE OF AGING The amendment reflects the increase in grant funding. NONPROFIT GRANTS-IN-AID The appropriation for nonprofit grants has been allocated in accordance with the funding recommendations of the Committee on Human Services and Economic Development. PARKS AND RECREATION Amendments to the Parks Department's budget include a) a new Park Planner position, b) adjustments for executive salaries, and c) the Start Living Healthy Campaign grant appropriation. MISCELLANEOUS The transfer to the Solid Waste fund has been increased as a result of the revisions to the Solid Waste budget. The provision for compensation adjustment account has been supplemented to include salary increases for staff attorneys. B]EAUT°IFICATION FUND REVENUES: The fund balance carryover estimate has been revised upward. EXPENDITURES: The Parks Roadside Beautification budget has been amended to include labor provided by the Parks Maintenance staff. SOLIY) WASfiE F'UNIS REVENUES: An EPA grant for waste reduction and recycling has been added and the subsidy from the General Fund has been increased to fund the changes in expenditures. EXPENDITURES: The Solid Waste Division has revised its needs for leasing of equipment to include a new D8 dozer and a landfill compactor. The Division has also adjusted its equipment replacement costs and has appropriated the EPA grant. HOUSING FUND REVENUES: Revenues from department charges have been revised and the fund balance carryovers adjusted to fund the changes in Housing's proposed expenditures. EXPENDITURES: The Office of Housing has amended its operating expenses and added increased facility repairs for the Kulaimano Elderly Housing Project. GENEI~L FIJNG Po4~~ A A®JIJSTMEN~S REVISED 2002-03 ADD 2002-03 ACCOUNT NO. DESCRIPTION ESTIMATE ~TIMATE REVENUES 3101.01 Real Property Tax-Current 101,349,000 783,000 102,132,000 3201.06 County Registration Fee 0 542,150 542,150 3302.90 Gun Grant Prosecution 100,000 (20,000) 80,000 3302.98 Hi Impact Grant 0 240,000 240,000 3303.00 Volunteer Fire Assistance 0 50,000 50,000 3303.01 Fire Ops & Safety 0 152,948 152,948 3304.06 Area Plan on Aging 635,000 150,000 785,000 3305.20 Hi Impact Grant 240,000 (240,000) 0 3305.22 Start Living Healthy 0 50,000 50,000 3305.23 Product Development Program 0 600,000 600,000 3305.24 Kalapana Program 0 50,000 50,000 3501.23 Pros Atty Forteitures-Fed 0 100,000 100,000 3602.02 Employee Parking Stalls 18,500 10,600 29,100 3609.01 Reimb ERS-Water Supply 501,163 (37,434) 463,729 3609.10 Fund Bal From Prev Year 1,450,000 (450,000) 1,000,000 3609.88 Reimb Fringes-Fed Program 0 16,500 16,500 TOTAL ADJUSTMENTS 1,997,764 )=XPENDITURES CLERK/COUNCIL 5101.01 Clerk/Council Svc S&W 1,548,160 22,820 1,570,980 OFFICE OF MANAGEMENT 5111.01 Office of Management S&W 669,066 18,372 687,438 5111.02 Office of Management OCE 81,590 3,000 84,590 DATA SYSTEMS 5118.01 Data Systems S&W 717,695 528 718,223 5118.02 Data Systems OCE 114,070 (1,500) 112,570 FINANCE 5121.01 Fin Admin 8~ Budget S&W 343,214 11,292 354,506 5121.02 Fin Admin & Budget OCE 36,035 100,000 136,035 5124.02 Treasury OCE 265,852 3,000 268,852 5125.02 Real Property Tax OCE 968,100 47,500 1,015,600 REVISED 2002-03 ADD 2002-03 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE CORPORATION COUNSEL 5131.01 Corporation Counsel S&W 1,124,376 11,292 1,135,668 PLANNING 5141.01 Planning S&W 1,336,172 11,292 1,347,464 CIVIL SERVICE 5151.01 Civil Service S&W 963,744 11,292 975,036 5151.02 Civil Service OCE 88,238 (2,338) 85,900 5152.02 Health & Safety OCE 148,885 (1,460) 147,425 RESEARCFi8~DEVELOPMENT 5161.01 Research & Dev S&W 359,446 5,784 365,230 5162.99 Product Development Program 0 600,000 600,000 5163.00 Kalapana Program 0 50,000 50,000 PUBLIC WORKS 5171.22 Building R&M OCE 1,484,100 (27,000) 1,457,100 5173.01 Public Works Admin S8~W 571,540 11,292 582,832 5173.06 Public Works Admin Eqpt 2,000 (1,200} 800 POLICE 5202.01 Police Headquarters S&W 263,396 11,292 274,688 5203.02 Police Adm Div OCE 5,290,981 171,281 5,462,262 FIRE 5221.01 Fire Protection-S&W 16,041,384 55,092 16,096,476 5221.38 Volunteer Fire Assist-Fed 0 50,000 50,000 5221.39 Fire Ops & Safety-Fed 0 218,497 218,497 PROSECUTING ATTORNEY 5271.01 Prosecuting Atty S&W 2,196,578 11,928 2,208,506 5271.47 Pros Atty Forfeitures-Fed 0 100,000 100,000 5271.61 Gun Grant Prosecution 100,000 (20,000) 80,000 MASS TRANSIT 5311.01 Mass Transit S&W 178,348 4,476 182,824 OFFICE OF AGING 5411.10 Area Plan on Aging OCE 980,912 150,000 1,130,912 REVISED 2002-03 ADD 2002-03 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE NONPROFIT GRANTS-IN-AID 5471.01 Grants to Nonprofit Orgs 900,000 (900,000) 0 5471.36 Kona Krafts 0 17,000 17,000 5471.39 Turning Pt for Fam-W. Hi 0 21,000 21,000 5471.45 Brantley Center 0 21,000 21,000 5471.47 Saly Army -Youth Svc -Puna 0 35,000 35,000 5471.48 HCEOC Transp 0 145,000 145,000 5471.56 E Hi Coalition-Emergency 0 37,500 37,500 5471.61 Fam Supp Serv of West Hi 0 48,000 48,000 5471.63 OSM - Hi Island Food Bank 0 32,500 32,500 5471.65 Children Justice Ct-W.Hi 0 13,000 13,000 5471.69 Big Is Subst Abuse-W.Hi 0 27,000 27,000 5471.70 KMC-Child Protection Ctr 0 16,000 16,000 5471.71 OSM -Care-A-Van 0 29,000 29,000 5471.72 Children Justice Ct-E.Hi 0 13,000 13,000 5471.77 Mental Health Kokua 0 15,000 15,000 5471.78 YMCA -Youth-At-Risk 0 50,000 50,000 5471.80 Big Island AIDS Project 0 10,000 10,000 5471.81 Hamakua Health Center 0 8,000 8,000 5471.85 ARC of Hilo 0 29,000 29,000 5471.86 Kona Adult Day Center 0 15,000 15,000 5471.87 Salv Army-Youth Svc -Kona 0 29,000 29,000 5471.88 W. Hi AIDS Foundation 0 15,000 15,000 5471.90 Hi Center for Indep Liv 0 15,000 15,000 5471.91 Bay Clinic 0 20,000 20,000 5471.92 Big Is Subst Abuse-E.Hi 0 27,000 27,000 5471.93 Bridge House 0 17,000 17,000 5471.94 Child & Family Service 0 5,000 5,000 5471.95 Special Olympics - E. Hi 0 5,000 5,000 5471.96 OSM -Mobile Care 0 20,000 20,000 5471.97 Kona Literacy Council 0 1,500 1,500 5471.99 American Red Cross 0 5,000 5,000 5472.01 Turning Pt for Fam-ATV 0 9,000 9,000 5472.02 Hi Is Adult Care-HiIoADC 0 15,500 15,500 5472.04 Hospice of Hilo 0 7,000 7,000 5472.07 E Hi Coalitn-Transition 0 2,500 2,500 5472.11 West Hawaii Mediation 0 5,000 5,000 5472.12 Goodwilllndustries 0 10,000 10,000 5472.14 YMCA - Ekahi 0 5,500 5,500 5472.15 Boys & Girls Club of Hi 0 36,000 36,000 5472.16 Diabetes Network 0 8,000 8,000 5472.17 Special Olympics - W. Hi 0 5,000 5,000 5472.19 YMCA - Ku'ikahi Mediation 0 5,000 5,000 5472.20 YWCA -SAVE 0 50,000 50,000 REVISED 2002-03 ADD 2002-03 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE PARKS & RECREATION 5503.01 PB~R Adm S&W 521,860 62,232 584,092 5507.25 Start Living Healthy 0 50,000 50,000 MISCELLANEOUS 5801.35 Transfer to Solid Waste Fund 7,353,104 109,000 7,462,104 5911.04 Provision for Comp Adjustment 950,000 150,000 1,100,000 TOTAL ADJUSTMENTS 1,997,764 I~~e~UTIFIC~?TION FUND Ps4RT F !~®JUSTMENTS REVISED 2002-03 ADD 2002-03 ACCOUNT NO. DESCBJPTION ESTIMATE SEDUCE ESTIMATE BFVFIIU ES 3609.10 Fund Bal From Prev Year 79,500 5,500 85,000 EXPENDITURES 5551.01 Parks Rdside Beautif S&W 0 5,500 5,500 S®LI~ iN~?ST~ FUNS '~,~lRT ~ A~JUS~~AENTS REVISED 2002-03 ADD 2002-03 COUNT ~ BESCRIPTION ESTIMATE ~ ESTIMATE .REVENUES 3303.02 Waste Reduction & Recycling 0 400,000 400,000 3609.11 Transfe,Pfrom General Fund 7,353,104 109,000 7,462,104 TOTAL ADJUSTMENTS 509,000 EXPENDITURES 5604.02 Landfills OCE 2,613,797 114,000 2,727,797 5604.06 Landfills Eqpt 75,000 (5,000) 70,000 5604.29 Waste Reduction & Recycling 0 400,000 400,000 TOTAL ADJUSTMENTS 509,000 H®USINC ~UN® ~~~fi K !~®JUST6V9~N~S REVISED 2001-02 ADD 2001-02 ACCO~INT NO. DESCRIPTION ESTIMATE, REDUCE ESTIMATE OFFICE OF HOU~~rJ(~ FUND: REVENUES 3609.10 Fund Bal From Prev Year 324,754 (30,730) 294,024 3609.26 Dept Charges 962,790 21,020 983,810 TOTAL ADJUSTMENTS (9,710) ~(PENDITURES 5466.02 Office of Housing OCE 391,340 (16,610) 374,730 5466.06 Office of Housing Equip 80,875 6,900 87,775 TOTAL ADJUSTMENTS (9,710) KULAIMANQ ELDERLX HOUSING FUND: REVENUES 3609.54 O/R From Prev Yr-KEHP 0 80,000 80,000 TOTAL ADJUSTMENTS 80,000 EZ(PENDITURES 5463.02 Kulaimano Oper Maint 93,912 80,000 173,912 TOTAL ADJUSTMENTS 80,000 _ _ .