HomeMy WebLinkAboutREP FC 250 04/19/2004 2002-2004REPORT OF THE
COMMITTEF. ON FINANCE
DATE: April 19, 2004 Re: Comm. No. 521/Bill No. 237;
PLACE: Council Chambers Comm. 521.1; Comm. Nos. 521.12,
TIME: 9:06 a.m. 521.13, 521.14, 521.16, 521.18.
521.19 and 521.20
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 237, reports as follows
Bill No. 237, transmitted by Mayor Harry Kim via Communication No. 521, dated March 1,
2004, submits for consideration the proposed Operating Budget for Fiscal Year 2004-05, totaling
$246,596,820 in estimated revenues and appropriations (Part [-Volume 1), 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 11) which describes the
departments and their programs, program objectives, highlights, program measures. expenditures
and positions.
Additionally, Communication No. 521.1 from Finance Director William Takaba, dated March 1,
2004, transmitted a booklet containing reports titled Six Month Progress Report on Program
Ohjeclires for FY2003-0-t and Final ,Status Repor! nn Program Ohjectives fhr FY2002-U3. The
reports provide information to the Council to assist in the evaluation of program accomplish-
ments during the first six months of the current fiscal year and for the previous 2002-03 tscal
year.
Among the communications received were letters from Prosecuting Attorney Jay Kinmra
(Comm. 521.12 dated March 15. 2004) and the Department of Public Works (Comm. 521.13)
responding to questions provided by the Legislative Auditor's Office at the Special Meeting of
the Finance Committee on March 12, 2004 and March 11, 2004, respectively.
The Operating Budget Proposal reflects an 1 1.5% increase in estimated net taxable real property,
but does not propose changes in tax rates. Upon certification in April, tinal real property
assessed valuations will be retlected in the May Draft 2 budget submittal. Other major
anticipated revenue increases include $5.2M from a proposed fuel tax increase, $2.4M in tipping
fees for the Solid Waste Fund, $2.1 M for the County Housing Voucher Program, and $730.000
in increased building permit and driver licensing tees.
fhe budget proposal projects a $3M General Fund balance carryover.
Major spending priorities presented in Mayor Kim's budget transmittal of March 1`~ include
funding of the new Kalaoa Fire Station in North Kona and assumption of the Kilauea Military
Camp Fire Station in Volcano; construction and operation of the East Hawaii Regional Sort
Station; increased repaving and road maintenance supported by fuel tax revenues; and $1.6M for
expanded routes, handivan services and shared ride taxi subsidies for Mass Transit.
Ilacaai'i County is an Equal t~portunity Frovicler and Eriployer FC Beport 250
Other significant changes to operating expenditures include $1.665M for the Police arbitrated
wage settlement and increased overtime and $3.1 M in increased contributions to the Employees
Retirement System (ERS).
Among proposed new positions are one Legal Specialist for the Legislative Auditor's Office, 13
positions for Environmental Management, 30 new positions for the Fire Department, as well as
20 new Fire Fighter recruit positions, 3 positions for Parks & Recreation, 12 new laborer
positions for the Highway Maintenance Division and 6 new positions for the Traffic Division.
A summary of estimated FY2004-OS revenues and expenditures is shown below
REVENUES
Account Description FY2003 FY2004 FY2005 S Variance % Variances
Estimate Estimate
General Fund Revenues
Taxes
Real Property Taxes 109,990,854 117,273,000 129,395,300 12,122,300 10.34
Public Svc Co Tax 5,063,897 5,215,000 5,120,000 (95,000) (1.82)
TTL Taxes 115,054,751 122,488,000 134,515,300 12,027,300 9.82
Licenses 8 Permits
Bus. Lic 8 Permits 1,959,658 2,410,590 2,544,470 133,880 5.55
Non-Bus. Lic & Permits 3,239,185 2,839,472 3,668,484 829,012 29.20
TTL Lics & Permits 5,198,843 5,250,062 6,212,954 962,892 18.34
Intergovernmental Rev.
Federal Grants 6,216,795 2,702,711 2,944,344 241,633 8.94
Federal Grants 1,285,512 2,050,207 1,463,600 (586,607) (28.61)
Federal Grants 2,593,997 382,012 164,000 (218,012) (57.07)
State Grants 25,622,357 28,833,522 29,536,108 702,586 2.44
State Grants 940,921 851,585 745,695 (105,890) (12.43)
TTL Intergovernmental Rev 36,659,582 34,820,037 34,853,747 33,710 0.10
Charges for Services
General Government 1,755,237 2,157,512 2,350,283 192,771 8.93
Public Safety 18,360 142,916 146,784 3,868 2.71
Highways & Streets 530,695 580,000 582,000 2,000 0.34
Parks & Recreation 695,874 766,650 814,125 47,475 6.19
TTL Charges for Services 3,000,166 3,647,078 3,893,192 246,114 6.75
TTL Fines & Forfeitures 385,748 1,139,500 1,072,500 (67,000) (5.88)
Miscellaneous Revenues
Interest Earnings 1,959,614 1,500,000 1,250,000 (250,000) (16.67)
Rents 59,698 44,800 51,800 7,000 15.63
Disp of Fixed Assets 12,521 1,347,100 1,048,100 (299,000) (22.20)
Contrib/Dons FR Prvt Src 276,550 309,000 292,000 (17,000) (5.50)
Reimbursements & Transfers 5,522,764 7,468,672 10,351,482 2,882,810 38.60
Sundry&Misc 1,019,121 351,000 338,300 (12,700) (3.62)
TTL Miscellaneous Revenues 8,850,268 11,020,572 13,331,682 2,311,110 20.97
TTL General Fund Revenues 169,149,358 178,365,249 193,879,375 15,514,126 8.70
2
Highway Fund 16,014,084 17,591,245 23,853,188 6,261,943 35.60
Sewer Fund 6,169,077 7,895,905 7,430,663 (465,242) (5.89)
Cemetery Fund 16,250 16,000 16,000 - -
Bikeway Fund 35,046 181,000 181,000 - -
Beautification Fund 142,513 200,000 215,000 15,000 7.50
Vehicle Disposal Fund 659,512 1,680,200 1,716,200 36,000 2.14
Solid Waste Fund 11,628,104 12,626,032 17,425,252 4,799,220 38.01
Golf Course Fund 1,040,436 1,007,786 988,304 (19,482) (1.93)
Geothermal Rel Rev Fund 38,570 150,000 150,000 - -
Housing Fund 11,199,359 12,312,488 14,428,348 2,115,860 17.18
Kulaimano Elderly Hsg Fund 260,935 406,900 457,800 50,900 12.51
Ouli Ekahi Hsg Fund 203,259 245,560 248,026 2,466 1.00
Geothermal Asset Fund 70,984 50,000 50,000 - -
TTL Funds 216,627,487 232,728,365 261,039,156 28,310,791 12.16
Less: Interfund Transfers 11,642,302 14,442,336 2,800,034 24.05
Net Revenues #VALUE! 221,086,063 246,596,820 25,510,757 11.54
EXPENDITURES
Account Description FY2003 FY2004
Budget FY2005
Estimate S Variance
Variance
General Fund Expenditures
Legislative 2,174,334 2,862,108 3,544,819 682,711 23.85
Elections 722,041 470,880 583,654 112,774 23.95
Executive 949,920 1,062,238 1,056,218 (6,020) (0.57)
Data Systems 857,188 850,988 876,385 25,397 2.98
Finance 5,365,694 6,434,713 6,464,811 30,098 0.47
Law/Corp Counsel 2,322,107 2,901,040 2,964,256 63,216 2.18
Planning 1,727,688 2,023,108 1,965,193 (57,915) (2.86)
Civil Service 1,191,522 1,317,295 1,392,853 75,558 5.74
Research & Development 1,485,466 1,761,751 1,688,671 (73,080) (4.15)
Maintenance/Building 2,585,322 2,818,216 2,765,744 (52,472) (1.86)
Public WorksAdmin 545,183 749,061 743,580 (5,481) (0.73)
Automotive 1,826,224 2,066,472 2,048,604 (17,868) (0.86)
Engineering 1,147,662 1,223,922 1,343,368 119,446 9.76
Police 33,757,226 36,663,831 38,173,054 1,509,223 4.12
Fire 18,857,154 20,579,996 24,737,459 4,157,463 20.20
Protective Inspection 1,597,767 1,595465 1,751,201 155,736 9.76
Flood Control 181,420 153,939 153,939 - -
Animal Control 809,814 849,948 954,215 104,267 12.27
Civil Defense 624,771 456,230 513,832 57,602 12.63
Liquor Control 1,021,669 1,081,590 1,091,970 10,380 0.96
Prosecuting Attorney 4,917,271 5,846,280 5,700,433 (145,847) (2.49)
Mass Transit 1,632,461 1,577,874 1,496,043 (81,831) (5.19)
County Physicians/Health 102,942 102,942 102,942 - -
Aging/Health 8 Welfare 1,444,815 1,641,703 1,848,907 207,204 12.62
Cemeteries 219,661 248,816 273,632 24,816 9.97
Schools 52,378 55,000 55,000 - -
Non-Profit Grants in Aid 900,000 900,000 900,000 - -
Elderly Activities 2,455,593 2,769,727 2,919,719 149,992 5.42
Parks & Recreation 12,316,035 13,174,017 13,401,381 227,364 1.73
3
Environmental Mgmt 253,804 354,623 785,229 430,606
Transfers to Other Funds 7,605,908 8,040,191 10,513,725 2,473,534
Transfer to Debt Svc 21,421,924 23,589,685 23,921,138 331,453
Pensions & Contribs 21,154,811 26,812,600 31,715,400 4,902,800
Miscellaneous 3,950,731 5,329,000 5,432,000 103,000
Block Grants 2,908,747 -
Home Grants 673,481 -
Housing Grants 250,000 -
General Fund 178,365,249 193,879,375 15,514,126
Expenditures
Highway Fund 15,076,933 17,591,245 23,853,188 6,261,943
Sewer Fund 5,000,252 7,895,905 7,430,663 (465,242)
Cemetery Fund 16,000 16,000 16,000 -
Bikeway Fund 1,751 181,000 181,000 -
Beautifcation Fund 53,833 200,000 215,000 15,000
Vehicle Disposal Fund 565,508 1,680,200 1,716,200 36,000
Solid Waste Fund 11,324,950 12,626,032 17,425,252 4,799,220
Golf Course Fund 970,300 1,007,786 988,304 (19,482)
Geothermal Rel Rev Fund - 150,000 150,000 -
Housing Fund 11,265,933 12,312,488 14,428,348 2,115,860
Kulaiman Elderly Hsg Fund 227,397 406,900 457,800 50,900
Ouli Ekahi Hsg Fund 145,891 245,560 248,026 2,466
Geothermal Asset Fund 2,013 50,000 50,000 -
TTL Fund Expenditures
Less:lnterfund Transfers
Net Expenditures
232,728,365 261,039,156 28,310,791
11,642,302 14,442,336 2,800,034
221,086,063 246,596,820 25,510,757
121.43
30.76
1.41
18.29
1.93
8.70
35.60
(5.89)
7.50
2.14
38.01
(1.93)
17.18
12.51
1.00
12.16
24.05
11.54
The following recommendations were brought forward for consideration by the administration in
Draft 2 of the Operating Budget for F'Y2004-05:
• Reflect a decrease in revenues to the Fuel Tax Increase account in lieu of the indefinite
postponement of Resolution No. 173-04 by the Committee on Finance.
• Reflcet an increase in revenues to the Vehicle and Trailer Weight Tax account with the
passage of Bill No. 260, which proposed to increase the annual vehicle weight tax for
passenger vehicles, small trucks and noncommercial vehicles from '/z cent per pound to'/a
cent per pound, and for trucks and commercial vehicles from 1 cent per pound to 2 cents
per pound effective January 1, 2005. {NOTE: No vote was taken by the Council to
determine the desirable use of additional weight tax revenues re: county laborer positions
vs. private contract paving.;
• Exclude funding associated with the proposed sort station until the County has clarified
its direction with respect to waste reduction technology.
4
Your committee originally reviewed the Operating Budget in conjunction with departmental
program reviews on March 11. March 12, and March 15, ?004. Pursuant to Section 10-4,
Hawaii County Charter, the Council also conducted public hearings on the proposed FY2004-OS
Operating and Capital Budgets in Hilo on March 15, 2004 and Kona on Mardi 17, 2004.
Upon review of the Mayor's amended budget submittal in May 2004, your committee may
propose amendments as necessary.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 237 and
recommends that it pass first reading.
/rf
AYflS NOFb A&F EX
\u\1:l A"I
rm iNr. x
ci euuiN~vr. r. x
un~ v~ia~n X
in~~nrscnn X
uN\~n~m x
c\c\u~u \'
'I'1'1 AVC X
f\'1 FR X
Respectfully submitted:
ON FINANCE:
AARON SY. ~UNG. CHAIR
FINAN REPORT No. 250
ADOPTF,D: M 7 0 Anne