COM 0140.014 2002-2004 - Laserfiche WebLink

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vv or AL KONISHI CONSTANCE R KIRIU County Clerk Legisla/ive Auditor JAY MENDE or""~.''~ Depury County Clerk County of Hawai `i Office of the County Clerk 25 Aupuni Street Hilo, Hawaii 96720 Telephone: (808) 961-8386 Facsimile: (808) 961-8572 March 10, 2003 TO: Aaron S.Y. Chung, Finance Committee Chair and Committee Members FROM: Jay Mende, Deputy County Clerk Rory Flynn, Fiscal/Program Revie ~ Auditor Rodney Oshiro, Legislative Auditor Assistant ~ Connie Kiriu, Legislative Auditot,~~ SUBJECT: Advisory Comments Re: Departmental/Program Budget Review Backeround In anticipation of the Special Finance Committee departmental/program review meetings on March 13-17 to examine the proposed FY 2003-04 operating and capital budgets (Bill Nos. 58 and 59), our office thought it appropriate to prepare this brief"budget advisory" memorandum to facilitate your upcoming discussions. This transmittal (with attachments) has been prepared by a working group assembled by the Legislative Auditor's Office. Foremost in our perspective of the "Draft 1"operating budget before you is the task of adopting a budget in compliance with §10-3(5) of the Hawaii County Charter, which states, in part: It (the Council) may decrease or delete items, excepting appropriations required by !aw and appropriations for debt .service. But in all cases the estimated revenues for the ensuing year shall be at least equal in amount to the proposed expenditures. In the short term, this first draft budget awaits determination of several revenue/expenditure uncertainties. These include final certification of property tax receipts, the next quarterly estimate from the Council of Revenues' (currently projecting 6% growth) respective to likely TAT revenue, and the outcome of cun•ent collective bargaining negotiations. Additionally, the certainty of contracting private security services at the new police station cellblock should be verified: presently, the Police Department reports only "verbal agreement" with SHOPO on this matter. As you are keenly aware, the state's fiscal crunch, a downturn in the national economy and the prospect of impending war in Iraq add much uncertainty to the issues noted above. Should a dramatic slump in tourism occur upon the outbreak of war - as happened during the Gulf War and following the attacks on 9/1 1 -receipt of TAT revenues will lag and the shocks felt throughout [he visitor industry will affect other sectors of our economy and social services safety net. Accordingly, a prudent respect for the discipline required to steer the County's fiscal course through an anxious time is imperative. The mayor does not propose property tax increases, nor any layoffs. His budget addresses a major, obligatory contribution of $3.2M to the Employees Retirement System, along with needed computer software up~~gra^^des Comm. No. ~ "7~• Ref. 70 ' "ss Ref. Dafe