HomeMy WebLinkAboutREP FC 105 07/01/1997 1996-1998 REPORT OF THE
COMMITTEE ON FINANCE
DATE: July 1, 1997 Re: Comm. No. 340
PLACE: Councilroom ~
TIME: 10:40 A.M.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 103, reports as follows:
Resolution No. 103, transmitted by Mayor Stephen K. Yamashiro, via Communication No. 340,
dated June 3, 1997, approves the cost adjustments agreed upon by the employers for excluded
managerial employees covered by Chapter 77 of the Hawaii Revised Statutes.
Pursuant to Section 89C-3 of the Hawaii Revised Statutes, relating to adjustments for officers
and employees excluded from collective bargaining, the directors of personnel services of the
State and counties serving as representatives of their respective chief executives and the
administrative director of the courts serving as representative of the chief justice, shall decide by
majority vote on the adjustments to be made for officers and employees covered under
Chapter 77, Hawaii Revised Statutes.
Pursuant to Section 89C-5 of the Hawaii Revised Statutes, any such adjustment which constitute
cost items shall be subject to appropriations by the appropriate legislative bodies.
The proposed adjustments for excluded managerial employees cover the two year period from
July 1, 1995 to June 30, 1997. The cost items are a combination of a 2.25% across-the-board
increase effective July 1, ] 996, and the implementation of a shredding plan. A shredding plan
credits employees for their years of service and then places them at their appropriate salary step.
The total increase in cost for fiscal year 1997 to the County of Hawaii due to this adjustment will
be $204,126. Additional adjustments such as employer's contribution to the Employee
Retirement System, vacation, holiday and sick leave reparations will increase the total cost to
$268,391. The adjustments will be covered from the Provision for Compensation Adjustments
account.
Committee members struggled with the County's "ability to pay" public employees salary
increases while the private sector faces financial hardships and their responsibility to be in
compliance with the Hawaii Revised Statutes, which states that excluded managerial employees
must get increases not less than scientific and professional public employees. Recently the
Council approved pay increases of more than five percent for professional public employees in
Bargaining Unit 13.
FC REPORT NO. 105
A majority of Your Committee members voted in favor of Resolution No. 103 with Mr. Tyler
casting the lone dissenting vote.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 103 and
recommends its adoption.
Ikc
Ayes Nues A&E EX
Respectfully submitted
CHUNG X
LeITxEAU-TOnn x COMMITTEE ON FINANCE
RAY X
SANTANGELO X
SMITH X
TvLeR x AARON S.Y. HUNG, C AIR
vncorvc X FC REPORT J L
ARAKAKI, E.O.M. X ADOPTED: