HomeMy WebLinkAboutREP FC 287 04/18/2006 2004-2006 REPORT OF THE
COMMITTEE ON FINANCE
DATE: April 18, 2006 Re: Comm. No. 717/Bill No. 235
PLACE: Council Chambers
TIME: 10:28 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 235, reports as follows:
Bill No. 235, transmitted by Mayor Harry Kim via Communication No. 717, dated
March 1, 2006, submits for consideration the proposed Operating Budget for Fiscal Yeaz
2006-07, totaling $316,076,272 in estimated revenues and appropriations (Part I-Volume I), and
includes the operations of eleven of the County's special funds as well as the General Fund.
Also submitted is the Operating Budget Proposal (Part 1, Volume II), which describes the
departments and their programs, program objectives, highlights, program measures,
expenditures, and positions.
Additionally, Communication No. 717.1 from Finance Director William Takaba, dated
March 1, 2006, transmitted a booklet containing reports titled Six Month Progress Report on
Program Objectives for FY2005-06 and Final Status Report on Program Objectives for
FY2004-OS. These reports provide information to the Council to assist in the evaluation of
program accomplishments during the first six months of the current fiscal year and for the
previous 2004-OS fiscal year.
Among the communications received were letters from Finance Director William Takaba
(Comm. 717.32), Corporation Counsel (Comm. 717.7), the Department of Environmental
Management (Comm. 717.34), Department of Parks and Recreation (Comm. 717.33), Office of
the Prosecuting Attorney (Comm. 717.00), Department of Civil Service (Comm. 717.9), Police
Department (Comm. 717.41), Office of Housing and Community Development (Comm. 717.21),
Department of Public Works (Comm. 717.39), and Office of the County Clerk (Comm. 717.19)
responding to questions provided by the Legislative Auditor's Office at the Special Meeting of
the Finance Committee on March 29, 2006 through March 31, 2006.
The highlights of the operating revenue proposal is as follows:
• Real Property Tax -Taxable real property values will increase by 18.8% after planned tax
rate reduction.
• Interest Income -Interest earnings increasing due to a higher rate of return on investments.
• Charges for Services -Solid Waste tipping fee revenues increasing by $2.2 million due to
increased tipping fees and tonnage.
• Other Revenues -Revenue source decreases due to reduction in land sales, debt
reimbursement and departmental charges.
FC REPORT NO. 287
Communication 717
Bi11235
Page 2
The highlights of the operating expenditure proposal is as Follows:
General Government - $4.2 million
• Finance Department -Waste reduction facility RFP consultants, $200,000
- Addition of Property Management division, $349,225
• Planning Department -Community Development Plans and positions, $672,445
• Building Division -Added positions and equipment, $661,352
• Automotive Division -Increase in fuel costs, $764,219
• Engineering Division -FIRM updates, $1,000,00
Public Safety - $10.2 million
• Police Department -Increased operating expenses, $300,000
- Assumed funding for 13 positions (Ice Task Force (7),
COPS in school (6), $516,788
• Civil Defense - DWS emergency power, $2,000,000
• Prosecuting Attorney -Additional grants, $524,467
• Public Works -Increased flood control, $181,092
Culture and Recreation - $3.4 million
• P & R Department -West Hawaii golf, $700,000
- Old Airport Park/Kona maintenance, $459,817
- Park Ranger program, Kahalu`u Beach Park, $130,000
Health Fund - $4.5 million
• GASB 45 Provision for Retires, $4,000,000
Miscellaneous -Major expenditure changes include:
• Transfer to Self-insurance Fund, $1,000,000
• Transfer to Public Access/Open Space Pres. Fund, $3,000,000
• Transfer to Rainy Day Fund, $4,000,000
Proposed new positions that are included in the Operating Budget are:
Data Systems 1 -Information Systems Analyst IV
Environmental Management
Administration 1 -Accountant Clerk
Environmental Management
Solid Waste Division 7 -Solid Waste Transfer Station Attendant
Environmental Management
Vehicle Disposal Division I - DerelicdAbandoned Vehicle Coordinator
(Vehicle Disposal Fee)
1 -Clerk III
(Vehicle Disposal Fee)
Finance
Accounts Division 2 -Account Clerk
FC REPORT NO. 287
Communication 717
Bi11235
Page 3
Fire Depaztment 1 -Account Clerk
Management 1 -Clerical Service Assistant
Department of Pazks and Recreation
Administration 1 -Personnel Assistant I
Department of Parks and Recreation
Aquatics 1 - Lifeguard I (Pool) 1/2T
2 - Lifeguazd I (Pool) 3/ST
Department of Parks and Recreation
Maintenance 1 -Clerk II
3 -Park Cazetaker I
1 -Park Facility Refuse Collector
1 -Tree Trimmer
1 -Park Maintenance Supervisor
Planning Depaztment 1 -Planner V
1 -Clerk III
1 -Clerk II
Police Depaztment 2 -Clerk III
1 -Account Clerk
1 -Police Records Clerk
1 -Police Reporter
Office of the Prosecuting Attorney 1 -Administrative Services Assistant
1 -Account Clerk
Depaztment of Public Works
Building Division 1 -Building Project Coordinator II
2 -Projects Coordinator
4 -Building Inspector
1 -Architectural Drafting Tech I
1 -Electrical Inspector
2 -Building Permit Clerk
1 -Supervising Building Permit Clerk
1 -Electrician
1 -Plumber
Department of Public Works
Engineering Division 1 -Construction Inspector
1 -Civil Engineer IV
Department of Public Works
Traffic Division 1 -Civil Engineer IV (Fuel Tax)
1 -Electrical Maintenance Supervisor (Fuel Tax)
A summary of estimated FY2006-07 revenues and expenditures are shown below:
REVENUES
Account Description FY 2005 FY 2006 FY 2007 E Variance % Variance
Actual Budget Estimate
General Fund Revenues
Taxes
Real Property Taxes 131,087,099 151,187,300 179,615,000 28,427,700 18.80
Public Svc Co Taz 6,351,273 6,500,000 6,300,000 (200,000) (3.08)
Total Tazes 137,438,372 157,687,300 185,915,000 28,227,700 17.90
FC REPORT NO. 287
Communication 717
Bill 235
Page 4
Licenses and Permits
Bus. Lic& Permits 2,577,094 2,829,100 3,088,199 259,099 9.16
Non-Bus. Lic & Permits 4,728,035 3,972,467 3,983,805 11,338 0.29
Total Lics & Permits 7,305,129 6,801,567 7,072,004 270,437 3.98
Intergovernmental Revenues
Federal Grants 6,550,623 3,775,918 3,484,530 (291,388) (7.72)
Federal Grants 993,537 1,220,443 1,126,059 (94,384) (7.73)
Federal Grants 6,368,827 3,018,120 2,651,377 (366,743) (12.15)
State Grants 30,064,841 32,898,608 34,937,028 2,038,420 6.20
State Grants 697,795 814,804 666,403 (148,401) (18.21)
Total Intergovernmental Rev 44,675,623 41,727,893 42,865,397 1,137,504 2.73
Charges for Services
General Government 2,782,697 3,012,380 3,497,132 484,752 16.09
Public Safety 147,402 150,284 152,878 2,594 1.73
Highways&Streets 527,453 541,000 206,114 (334,886) (61.90)
Parks & Recreation 764,737 830,080 883,050 52,970 6.38
Total Charges for Services 4,222,289 4,533,744 4,739,174 205,430 4.53
Total Fines & Forfeitures 647,327 1,374,500 1,484,900 110,400 8.03
Miscellaneous Revenues
Interest Earnings 2,973,131 2,400,000 4,000,000 1,600,000 66.67
Rents 51,738 56,500 119,140 62,640 110.87
Disp of Fixed Assets 1,486,515 1,363,000 50,000 (1,313,000) (96.33)
Contrib/Dons FR PM Src 355,945 315,000 330,000 15,000 4.76
Reimbursements & Transfers 6,838,288 10,864,897 7,041,258 (3,823,639) (35.19)
Sundry 8 Misc 330,931 322,717 288,057 (34,660) (10.74)
Total Miscellaneous Revenues 12,036,548 15,322,114 11,828,455 (3,493,659) (22.80)
Total General Fund 206,325,288 227,447,118 253,904,930 26,457,812 11.63
Revenues
Other Fund Revenues
Highway Fund 19,445,808 21,268,904 22,932,140 1,663,236 7.82
Sewer Fund 5,938,863 8,434,062 8,853,871 419,809 4.98
Cemetery Fund 8,250 16,000 10,000 (6,000) (37.50)
Bikeway Fund 19,884 171,000 171,000 - -
Beautifcation Fund 157,825 225,000 225,000 - -
Vehicle Disposal Fund 1,893,912 2,231,706 2,786,519 554,813 24.86
Solid Waste Fund 18,632,899 23,184,482 26,929,346 3,744,864 16.15
Golf Course Fund 916,373 1,006,304 1,093,830 87,526 8.70
Geolhertnal Rel Rev Fund 320,315 150,000 150,000 - -
Housing Fund 13,014,798 12,776,977 13,274,664 497,687 3.90
Kulaimano Elderly Hsg Fund 244,050 392,800 345,222 (47,578) (12.11)
Ouli Ekahi Hsg Fund 221,539 254,162 283,332 29,170 11.48
Geothermal Asset Fund 86,454 50,000 50,000 - -
Total Other Funds 60,900,970 70,161,397 77,104,924 6,943,527 9.90
Total Funds 267,226,258 297,608,515 331,009,854 33,401,339 11.22
Less: Intertund Transfers - 13,559,683 14,933,582 1,373,899 10.13
Net Revenues 284,048,832 316,076,272 32,027,440 11.28
FC REPORT NO. 287
Communication 717
Bi11235
Page 5
EXPENDITURES
Account Description FY 2005 FY 2006 FY 2007 S Variance % Variance
Actual Budget Estimate
General Fund Expenditures
Legislative 2,464,592 5,191,863 4,859,629 (332,234) (6.40)
Elections 588,006 535,038 973,865 438,827 82.02
Executive 1,603,143 1,249,087 1,587,031 337,944 27.06
Data Systems 853,940 1,020,758 1,151,984 131,226 12.86
Finance 6,097,714 7,218,371 7,934,889 716,518 9.93
Law/Corp Counsel 2,742,274 3,319,531 3,406,664 87,133 2.62
Planning 2,014,057 2,259,247 3,099,478 840,231 37.19
Civil Service 1,279,833 1,641,866 1,689,031 47,165 2.87
Research & Development 1,847,927 3,350,028 2,222,634 (1,127,394) (33.65)
Maintenance/Building 2,791,194 3,370,579 4,337,584 967,005 28.69
Public Works Admin 717,649 848,834 889,007 40,173 4.73
Automotive 2,438,313 2,906,909 3,865,482 958,573 32.98
Engineering 1,286,824 1,596,564 2,705,777 1,109,213 69.48
Police 38,108,638 41,701,652 45,813,725 4,112,073 9.86
Fire 23,443,642 27,137,094 28,455,010 1,317,916 4.86
Protective Inspection 1,954,913 1,945,302 2,360,212 414,910 21.33
Flood Control 275,758 153,939 335,031 181,092 117.64
Animal Control 954,215 992,384 1,045,482 53,098 5.35
Civil Defense 1,809,878 468,793 2,525,783 2,056,990 438.78
Liquor Control 993,486 1,262,417 1,444,856 182,439 14.45
Prosecuting Attorney 5,302,903 6,351,389 7,466,015 1,114,626 17.55
Mass Transit 2,030,631 4,925,321 4,613,306 (312,015) (6.33)
County Physicians/Health 102,942 102,942 102,942 - -
Aging/Health & Welfare 1,403,205 2,056,578 2,540,856 484,278 23.55
Cemeteries 251,870 273,632 313,618 39,986 14.61
Schools 47,416 55,000 65,000 10,000 18.18
Non-Profit Grants in Aid 726,000 825,000 900,000 75,000 9.09
Elderly Activities 2,749,103 2,992,387 3,203,040 210,653 7.04
Parks & Recreation 13,222,316 14,238,347 17,570,473 3,332,126 23.40
Environmental Mgmt 722,007 1,074,258 1,239,535 165,277 15.39
Transfers to Other Funds 16,634,978 17,077,549 23,433,582 6,356,033 37.22
Transfer to Debt Svc 24,785,683 27,500,608 28,622,809 1,122,201 4.08
Pensions R Contribs 31,140,550 33,966,351 39,054,600 5,088,249 14.98
Miscellaneous 2,762,473 7,837,500 4,076,000 (3,761,500) (47.99)
Block Grants 3,681,367 - -
Home Grants 1,784,511 - -
Housing Grants - -
Total General Fund 201,613,951 227,447,118 253,904,930 26,457,812 11.63
Expenditures
Other Fund Expenditures
Highway Fund 19,380,701 21,268,904 22,932,140 1,663,236 7.82
Sewer Fund 5,482,577 8,434,062 8,853,871 419,809 4.98
Cemetery Fund 244 16,000 10,000 (6,000) (37.50)
Bikeway Fund 3,861 171,000 171,000 - -
8eautification Fund 76,335 225,000 225,000 - -
Vehicle Disposal Fund 1,230,936 2,231,706 2,786,519 554,813 24.86
Solid Waste Fund 16,000,946 23,184,482 26,929,346 3,744,864 16.15
Golf Course Fund 941,335 1,006,304 1,093,830 87,526 8.70
Geothermal Rel Rev Fund - 150,000 150,000 - -
Housing Fund 13,412,533 12,776,977 13,274,664 497,687 3.90
Kulaimano Elderly Hsg Fund 251,085 392,800 345,222 (47,578) (12.11)
FC REPORT NO. 287
Communication 717
Bi11235
Page 6
Ouli Ekahi Hsg Fund 157,633 254,162 283,332 29,170 11.48
Geothermal Assel Fund 1,901 50,000 50,000 - -
Total Other Fund 56,940,089 70,161,397 77,104,924 6,943,527 9.90
Expenditures
Tolal Funds 258,554,040 297,608,515 331,009,854 33,401,339 11.22
Less: Inter-Fund Transfers 13,559,683 14,933,562 1,373,899 10.13
Net Expenditures 284,048,832 316,076,272 32,027,440 11.28
Your Committee originally reviewed the Operating Budget in conjunction with departmental
program reviews on Mazch 29 through Mazch 31, 2006. Pursuant to Section 10-4, Hawaii
County Charter, the Council also conducted public heazings on the proposed FY2005-06
Operating and Capital Budgets in Hilo on March 16, 2006, and in Kona on March 22, 2006.
During the budget review, Managing Director Dixie Kaetsu restated the Mayor's budget message
that reflects some of the lessons learned in both hardship and prosperity:
• As the County strive to "catch up and keep up" with maintenance, repairs, and services
throughout the island, the County must also set funds aside for future needs and prepare
for economic uncertainties.
• The County must constantly seek ways to preserve the quality of life of our residents
through affordable and accessible housing, transportation, recreation, public safety, and
other County services.
• The County must balance our desire to fully meet the service expectations of our
residents, with the need to keep the growth of government and property taxation within
reasonable limits.
Upon review of the Mayor's amended budget submittal on May 5, 2005, the Council may
propose amendments as necessary.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 235 and
recommends that it pass first reading.
smc
AYES NOES A&E EX Respectfully submitted,
ARAKAKI x
RIGA x COMMITTEE ON FINANCE
HOFFMANN x
HOLSCHUH x I
IKEDA x ~ ~ „ _ ~
ISBELL X V"~~'`--
aACOSSOrv x VIR NIA ISBELL, CHAIR
FILACO x FC REPORT NO. 287
SAFARIK x aDOrTED: MAY 1 7 2006