HomeMy WebLinkAboutCOM 0742.036 1996-1998 JM~{V Os
'P c- y6c William G. Davis
Stephen K. Yamashiro Managing Dircxtor
Mayan ,
• - ; Henry Cho
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:N~,NP Dep¢ty Managing Direrfrrr
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ZS Aupuni Street, Room 215 fiilo, Hawaii 96720-4252 (808) 961-8211 Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suite 103 };ailua-Kona, Hawaii 96740
(808) 3295226 Fax (808) 3:!6-5663
June 10, 1998
The Honorable James Y. Arakaki
Council Chairman
Hawaii County Council
Hilo, Hawaii
Re: Bill 202, Draft 4, 1998-99 Operating Budget
Bill 203, Draft 4, 1998-99 Capital Budget
I have signed the Operating Budget and Capital Budget bills
approved by the Council.
In signing the Operating Budget, it is my understanding that
the Council did not concur with our recommendation that all of
the $492,000 net realization from the 1998 State Legislature be
placed in the Provision for Future Budget Shortfall account but
instead placed $10,000 for a Charter Commission and $482,000 in
the Council's budget as Contingency Relief. I would like to
take this opportunity to inform the Council that throughout the
1998-99 fiscal year we will do everything possible to hedge our
fiscal resources for the 1999-2000 budget. I will not be
allowing any transfers out of the account containing the
$980,000 the Council set up in their budget. If the Council
wished to expend these monies for a specified project they
should have established appropriations during the budget review.
It is also my understanding that the Council increased the
appropriations in the Capital Budget by $9,996,000 and 12
additional projects. The Council needs to realize that the
Capital Budget only designates the source of funding for the
approved projects. The Council did not provide for any
increase to the Operating Budget's debt service to accommodate
the additional Council projects and therefore we would not have
the means by which to issue general obligation bonds for the
additional requirements.
, , JUN 1 1998
The Honorable Jt s Y. Arakaki
June 10, 1998
Page 2
In closing, I would reiterate that the Administration will be
looking closely at expenditures throughout the 1998-99 fiscal
year and will be hedging fiscal resources to offset the
anticipated shortfalls for the 1999-2000 fiscal year.
We look forward to working with the Council as we prepare to
enter the twenty first century on a sound fiscal basis.
PHEN K. SHIRO
Mayor, Cou of Hawaii