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HomeMy WebLinkAboutCOM 0717.078 2004-2006 MtY^01 Ny,_ `9~;~` ~~6VC~ Harry Kim Dixie Kaetsu Mayor • Managing Director 1'•., 'fir: o;~w;+t Barbara Kossow Deputy Managing Director ~ouutp of ~atuai`i 25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 961-8211 Fax (808) 961-6553 KONA: 75-5706 Kuakini Highway, Suite 103 Kailua-Kona, Hawaii 96740 (808)329-5226 Fax (808)326-5663 rte, c-+ June 16, 2006 c ~ n c r.,, C" The Honorable Stacy Higa, Chairperson, and ~ ~ rv Members of the Hawaii County Council ° 25 Aupuni Street Sy Hilo, Hawaii 96720 ~ ~ Constance Kiriu, County Clerk ~ ~n County of Hawaii ~ 'L' 25 Aupuni Street Hilo, Hawaii 96720 Dear Chairperson Higa, Council Members, and Ms. Kiriu: I have returned Bi11235 Draft 4, the Operating Budget for FY2006-2007, to take effect without my signature. The major points of concern which led to the return of the bill without my signature are as follows: • The decrease in the amount to be transferred to the Public Access, Open Space and Natural Resources Fund. Both the March and May budget submittals to you included a $3 million transfer of funds to this new fund, to bring the total on deposit in the fund to $4 million. Draft 4 of Bill 235 cut this amount to $ I million. It is of importance that we act now to preserve our precious open space as well as public access to the shore and mountains. The budget was prepared in anticipation of the receipt of the initial report from the Public Access, Open Space and Natural Resources Commission with a prioritized list of properties the County should consider for acquisition. The intent of this administration is that County funds be used, wherever possible, to leverage state, federal and private funds to get more "bang for the buck." However, to be in a position to do this, we must have our funds available. We must set aside money for this purpose when we have the resources to do so, and we can and should do that this year. Including a capital appropriation in the Capita] Budget as was done does not accomplish the same goal because there are no funds tied to it. • The decrease in the amount to be transferred to the new Rainy Day Fund. Both the March and May budget submittals included a $4 million deposit to this fund. Draft 4 of Bi11235 cut this amount to $1 million. It has been strongly recommended to the County of Hawaii by bond rating agencies that such a fund be established. This is prudent fiscal management and will help ensure favorable ratings and interest rates for future County general obligation bond issues, as well as providing a welcome and Comm. No•_]1',i,~ Ref. To=-~~'~'~'•' Ref. Uate July L G LUU6 Hawaii County is an equal opportunity provider and employer. June 16, 2006 The Honorable Stacy Higa, Council Members, and Constance Kiriu Page 2 needed cushion against unanticipated economic downturns. Again, we must set aside money in reserves when we have the resources to do so, and we can and should do that this year. • Additional positions and other items funded by the Council in Draft 4 of Bi11235. The preparation of any budget requires the establishment of priorities. Overall prioritization of new positions and proposed expenditures included in the March and May budget submittals were based on administrative priorities as listed in the May 5 budget message to the Council. Working with these administrative priorities, departments prepare their own priorities based on their assessment of their operational needs. It is felt by this administration that departmental needs as identified by the lengthy administration budget preparation process were addressed in the budget presented to you. I do appreciate your awareness that all departments da need additional manpower beyond what we felt was fiscally prudent to include in our budget proposal. There is concern, however, that in granting additional positions and items, the Council did not always include the highest priorities of the departments that were granted the extra funds. It is believed that administrators of departments should be the ones establishing the priorities. Awarding of additional money by the Council or administration should be done only after close coordination with the departments. Please be aware that one or more departments may be coming back to the Council to reprioritize the items granted. It is fully recognized that the County Council has the power to amend the budget as presented by the administration, and the amendments that were made are within the Council's area of authority. Therefore, I have not vetoed this measure, although I cannot sign it with approval because it is not felt that the amendments made are in the best interests of the County and its people. A f~ < Ki~ VL`'~ AYOR