HomeMy WebLinkAboutCOM 0742.031 1996-1998 oJNVV or x+k+
w William G. Davis
. Y6G2.
Stephen K. Yamashiro ~ ~ Managing Director
Mayor Henry Cho
+j•• ~ Deputy Managing Director
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25 Aupuni Strmq Room 215 Hilo, Hawaii 96720-4252 (808) 9df-82 C1 + Fax (808) 961.6543
KONA: 75-5706 Kuakini Highway, Suite I03 Kailua•Kone, Hawaii 96740
(808) 329.5226 Fax (808) 326.5663
May 15, 1998
The Honorable James Y. Arakaki, Council Chair
and Council Members
Hawaii County Council
Hilo, Hawaii
RE: Budget Proposals
Enclosed is a schedule of recommended amendments to the
Operating Budget for 1998-99. We have also included an
analysis of the fiscal impact to the County of recent
legislative actions. The recently concluded State
Legislature approved the following proposals with fiscal
impacts to the County:
The Transient Accommodations Tax was increased from 6°•s
to 7.25% with 44.8% of the collections being shared
amongst the counties.
The assumption for pay raises for retirement system
purposes was reduced from 4% to 3%.
Health Fund reserves were approved for rebate to the
State and counties.
Provisions for pay raises for collective bargaining
Units 1, 2, 3, 4, and 13 were not provided for.
The revised TAT rate and distribution will be effective on
January 1, 1999, and will result in a revenue reduction of
$2,876,397. Impacts relating to changes to the Employee
Retirement System assumptions on pay raises and the rebate
from the Health Fund reserves provide relief for fiscal
year 1996-99; however, we have concerns for the fiscal
year 1999-2000 when our analysis indicates that we may be
facing a revenue shortfall of $9.8 million.
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Council Chair and Council Members
May 15, 1998
Page 2
In our recommendations, we are incorporating six months of
reduced TAT collections, reducing the expenditures for the
employee retirement system and health plan contributions
and deleting all provisions for salary increases. Because
the bills have not been approved by the Governor, we
propose that any balances be placed into a new account to
be titled "Provision for Future Budget Shortfalls".
In establishing the new provisional account, we believe it
is a beginning to offset anticipated revenue losses in
1999-2000. Without the implementation of extreme saving
measures, our County may not be able to continue with our
"warm body" policy. We owe it to our hard working
employees to take every step in preserving their job
status with the County.
We look forward to working with the Council in addressing
the challenges before us. Should there be any further
question, please feel free to call.
Sincerely,
S hen mashiro
ayor
encl.
ROPOSED BUDGET AMENDMENTS
BUDGET ADD REVISED
ACCOUNT NO. DESCRIPTION AMOUNT (REDUCEI AMOUNT
GENERAL FUND
REVENUES
3304.01 State Grant-in-Aid 18,217,000 (2,880,000) 15,337,000
3611.18 Health Fund Refund 0 1,604,818 1,604,818
EXPENDITURES
5801,35-341 Transfer to Solid Waste Fund 7,687,775 (62,000) 7,625,775
5801.36-341 Transfer to Golf Course Fund 175,146 (1,000) 174,146
5901.10-341 ERS Pensidn Accum Fund 8,257,500 (1,767,300) 6,490,200
5911,04-341 Provision for Compensation Adjustment 1,592,116 (1,592,116) 0
5911.52-341 Provision for Future Budget Shortfall 0 2,147,234 2,147,234
HIGHWAY FUND
EXPENDITURES
5911.05-341 Provision for Compensation Adjustment 213,774 (213,774) 0
5911.18-341 Contingency 9,875 213,774 223,649
SEWER FUND
EXPENDITURES
5911.19-341 Contingency 37,416 69,807 107,223
5911.49-341 Provision for Compensation Adjustment 69,807 (69,807) 0
PARKING METER FUND
REVENUES
3609.10 Fund Balance from Previous Year 33,297 (2,800) 30,497
EXPENDITURES
5911.50-341 Provision for Compensation Adjustment 2,800 (2,800) 0
SOLID WASTE FUND
REVENUES
3609.11 Transfer from General Fund 7,687,775 (62,000) 7,625,775
EXPENDIUTRES
5911.46-341 Provision for Compensation Adjustment 62,000 (62,000) 0
GOLF COURSE FUND
REVENUES
3609.11 Transfer from General Fund 176,146 (1,000) 175,146
EXPENDIUTRES
5911.45-341 Provision for Compensation Adjustment 1,000 (1,000) 0
TAT DISTRIBUTION
IMPACT OF LEGISLATION
S.B NO. 2259
S.D. 1
H.D. 1
C.D. 1
CURRENT NEW
DISTRIBUTION PROPOSAL
@ 6.00% TAX @ 7.25% TAX
TOURISM SPECIAL FUND 56,656,773
CONVENTION CENTER FUND 20,619,333 25,861,799
STATE RETAINAGE 5,154,833
COUNTY ALLOCATIONS:
HONOLULU 44.1% 43,192,349 29,534,473
MAUI 22.8% 22,330,738 15,269,524
HAWAII 18.6% 18,217,181 12,456,717
KAUAI 14.5% 14,201,566 9,710,881
97,941,833
TOTAL 123,716,000 149,490,167
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