HomeMy WebLinkAboutREP FC 050 02/28/2005 2004-2006 REPORT OF THE
COMMITTEE ON FINANCE
DATE: February 28, 2005 Re: Comm. No. 121/Bill No. 40
PLACE: Council Chambers
TIME: 10:10 a.m.
Council Chair Safarik and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 40, reports as follows:
Bill No. 40, transmitted by Director of Finance William Takaba, via Communication No. 121, dated
February 28, 2005, amends Ordinance No. 04-74, as amended, the Operating Budget, ending
June 30, 2005. The amendment is as follows:
From:
3609.10 Fund Balance From Previous Year General $1,704,750
l'o:
010.101.5101.02 Clerk-Council Services - OCF, General $ 42,000
010.121.5121.02 Finance Administration - OCE 200,000
010.121.5122.01 Accounts Division-S&W 18,000
010.121.5124.02 'Treasury Division-OCE 46,750
010.141.5141.01 Planning-S&W 12,000
010.151.5151.01 Civil Service-S&W 32,000
010.171.5171.22 Building Maintenance Division-OCE 40,000
010.181.5181.52 Automotive Division - OCE 300,000
010500.5503.01 Parks Administration--S&W 9,000
010.500.5505.1 I Parks Maintenance -Equip 30,000
010.801.580133 Transfer to Capital Projects Fund 675,000
010.901.5902.05 Employee Health Plans 300,000
"Total $1,704,750
From the general fund's fund balance of $6,697,734.37, which certified by the Mayor on October 7, 2004,
an appropriation of $4,042,488 to various accounts has already been approved by the council in order to
meet County needs. This bill is a result of meetings between the administration and Councilmembers, in
which there were no special requests from the members for projects; however, several members
mentioned County building repairs as a priority. Some of the remaining funds are proposed to he
transferred to CIP to support those renovations.
The fund balance will be distributed to the following accounts:
• Clerk-Council Services OCE (miscellaneous contractual services) -Funds are requested for
the County's contribution to the cost of hosting the annual NACo conference in Honolulu.
• Finance OCE (miscellaneous contractual services) -Funds are requested for additional costs
associated with the County's transition from the Wang accounting systems to the new FRESH
system Software modifications arc required to accommodate the County's unique payroll
system. There have also been costs associated with the increase in time required to
implement the payroll system. Other modules require some customization to achieve the
maximum benefit for the County.
FC REPOFi"f NO. 50
• Finance Accounts Division S&W (overtime) -Due to limited staffing and the additional
work associated with the FRESH conversion overtime has been required, which was not
anticipated in the original budget.
• Finance Treasury OCE (miscellaneous contractual services) -The County of Hawaii was
randomly selected by the IRS for an audit of our 1993 general obligation bonds. Our bond
counsel for this issuance recommended that we be represented by legal experts in responding
to the IRS. The audit was unanticipated at the time the current budget was established.
• Finance Treasury OCF, (miscellaneous materials & supplies) -Due to the increase in motor
vehicle registrations, the current inventory of license plates is depleting faster than anticipated
and must be supplemented to complete the fiscal year.
• Planning Department S& W (Planner V) -The Council previously provided funds for
community development planning. 'fhe department does not currently have staff available to
oversee the implementation of the community plans. Due to the high volume of permit
activity additional staff is needed for plan review. The funding requested represents three
months of salary.
• Civil Service S&W (overtime)- Civil Service has limited staff and the additional work
associated with the FRESH Human Resources conversion it has required overtime, which
was not anticipated in the original budget.
• Public Works Building Maintenance Division OCE (miscellaneous contract services)-The
central fire station roof is in need of repair. Punds will be used for architectural consultant
services to prepare the necessary construction specifications.
• Public Works Automotive Division OCE (fuels & lubricants) -Fuel costs for gasoline and
diesel fuel have increased by 40 percent and 70 percent respectively since the current year
budget was estimated. As a result_ the fuel account does not have adequate funds to complete
the year.
• Parks & Recreation (P&R) Administration S&W (Architectural Drafting Technician I[) -
Historically and currently, P&R has relied upon department of public works building division
to provide drafting and design services for renovations and improvements. The project
workload at P&R exceeds what building dvision can support in addition to the other facilities
for which they are responsible. The result is that the number of projects that can be
completed is limited. Establishing this position will shorten the time for completion oC ADA
and other renovations. The finding requested represents three months of salary.
• Parks & Recreation Mintenance - Isuip (motor vehicle) -The current budget included the
purchase of a refuse truck to improve efficiency and safety in collecting garbage at various
parks. The low bid purchase price for the truck exceeded the budget estimate. P&R was able
to cover some of the excess cost by purchasing surplus equipment and deferring other
purchases, but additional funds are still needed to meet the purchase cost.
• Miscellaneous Transfer to Capital Projects Fund -This supplemental funding will be used to
cover a portion of the cost of roofing repair and renovation of the County building.
FC REPORT NO. 50
• Miscellaneous Employee Health Plans -Health fund costs will exceed the current year budget
by approximately $300,000 because actual increases for retirees were more than anticipated.
Additionally, the health fund budget was cut by about $134,000 from the originally submitted
amount.
Bill No. 40, Draft 2 was referred to Your Committee, dated February 24, 2005, from Director of Finance
William Takaba, who requested to amend the bill by changing the designated account for the $40,000
appropriation for funds from the building division to the fire department. There is no change in the
amount.
Councilmember Hoffmann circulated the following amendments, which were approved by Your
Committee:
I . Increase the amount of money in the fund balance by $62,500 in section I to $1,767,250.
2. Add $50,000 to the department of environmental managements budget in order to allow
the department to perform a feasibility analysis of establishing a curbside recycling and
trash pick-up pilot project for Waikoloa Village, which adds a line to section 2 as
follows:
Account No. Function and Activity Amount
010.801.5801.35 Solid Waste Fund $50,000
3. Add $12,500 to department of public work's budget in order to allow the department to
build an asphalt sidewalk on Ho`oko in Waikoloa, which adds a line to section 2 as
follows:
Account No. Function and Activity Amount
010.801.5801.38 Highway Fund $12,500
Your Committee on Finance is in accord with the purpose and intent of Bill No. 40, as amended to
Draft 3. and recommends it pass first reading.
smc
Hues n~oHS n&e ex Respectfully submitted,
_A RA KAKI X
ttIGA X COMMITTEE ON FINANCE
HOFFMANN X
HOLSCHUH X _ ~
IKEDA X
ISBELL X ~ i,~t v„`~,--'- `~L`l~
JACOBSON x VIRG IA ISBELL, CHAIR
PIEAGO X FC REPORT NO. 50
sAFARIK - x_ _ _ ADOP~rsD: MAR
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