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Home My WebLink AboutCOM 0151.014 2008-2010 J~tY •i ,p,• William T. Takaba ~Vliys Managing Director William P. Kenai Mayor - Walter K.M. Lau • a7--~: ~i r~+;•• ~ Deputy Managing Director 1/"~1 Iy ytfv ~rr•oi}lM•b•~(utt i 6.7 eea 891 Ululani Street • Hilo, Hawaii 96720-3982 • (808) 961-8211 Fm(808)961-6553 KONA: 75-5722 Hanama Place, Suite 102 . Kailua-Kona, Hawaii 96740 C 1 :71 Nl.y •..c _,i,p (808) 327-3602 • Fm(808)326-5663 Lj t' c.n May 5, 2009 ;Ertl F CO The Honorable Chairman J Yoshimoto > c and Members of the County Council County of Hawaii Hilo, HI 96720 Dear Chairman Yoshimoto and Council Members: As required by the Hawaii County Charter, the amended operating budget proposal for the County of Hawaii for the fiscal year ending June 30, 2010 is hereby submitted. OVERVIEW This balanced budget includes estimated revenues and appropriations of $386,738,088 and includes the operations of eleven of the County's special funds as well as the General Fund. It is $16,466,910, or 4.1% lower than the FY 2008-09 budget. This balanced budget does not rely on any property tax increases. In arriving at this amended budget the Administration was faced with significant additional decreases in real property tax and transient accommodations tax (TAT) revenues, as well as an increase in health benefit costs. Continued review of departmental budgets resulted in additional reductions of expenditures. Current year hiring and spending restrictions have also generated savings, which are reflected in the increased estimate of fund balance available for carryover to the new budget. DETAILS Significant Changes to February 27, 2009 Revenue Estimates • Real Property Tax - reduced by $2,780,000 to reflect the certified net taxable real property values. This is primarily due to having a large amount of net taxable value under appeal this year. The result is a budgeted revenue of $215,200,000, using current tax rates. This is a decrease of $15,094,000 (6.55%) from the current year budget. The total value of net taxable real property within the County of Hawaii for FY 2009-10 is $28.15 billion, which represents a 4.59% decrease over the current tax year. The amount under appeal is $722 million. cqm::,. i ~ I S Ref. To: CAM-^61. 16t County of Hawaii ism Equal Opportunity Provider and Employer. Ref, Date . MAY 0 6 2009 _ l` Dra~'+ a 7 The Honorable Chairman J Yoshimoto and Members of the County Council May 5, 2009 Page 2 • Licenses and Permits - increased by $380,000 to reflect proposed increases in driver licensing and motor vehicle financial responsibility fees. • Intergovernmental Revenues - decreased by $705,064, as the result of a $758,000 decrease in Transient Accommodations Tax projections by the Council on Revenues, which is partially offset by increases in some other state and federal grant budgets. • Fund Balance Carryover - increased carryover projections by $5,800,000, which represents an increase in current year expenditure savings as a result of restrictions on filling vacant positions and a 5% cut in non-salary expenditures as well as the removal of the transfer to the Budget Stabilization Fund as discussed below. The transfer from Budget Stabilization Fund of $2,000,000 was removed as a revenue source because the County Code intends that it be transferred and used within the year in which it is needed. The appropriate procedure will be to request the transfer from the Budget Stabilization Fund to the General Fund during Fiscal Year 2009-10 if it is needed to balance the budget due to an insufficient fund balance carryover or other revenue shortfall. Significant Changes to February 27, 2009 Expenditure Estimates General Fund • Legislative Branch - reduced overall budget by $361,848 in cooperation with the administration's effort to cut 10% of non-salary and grant budgeted expenditures. • Office of Management - decreased salary and wages by $41,714 to reflect a one- day-per-month furlough for appointed staff. • Police - increased original estimate of salary and wages by $450,000 for overtime to recognize the impact of cumulative salary increases on overtime costs. • Employee Benefits - increased by $700,000 to reflect increased health insurance premium cost, based on determination of rates by the Employer Union Trust Fund. • Vacant Positions - We originally proposed in February to unfund 42 vacant positions. This amended budget proposal includes a cumulative total of 55 positions that have been unfunded, representing savings of $1.3 million. The remaining positions are considered to be essential to County operations, and/or they have an existing incumbent temporarily assigned to a worker compensation position or in some other temporary appointment. Position Changes from February 27, 2009 Budget Proposal This amended budget proposes two new positions in addition to the two positions deleted in the original submitted budget. The new positions will provide water safety officer coverage at Punalu'u Beach Park on weekdays. County of Hawai'i is an Equal Opportunity Provider and Employer. The Honorable Chairman J Yoshimoto and Members of the County Council May 5, 2009 Page 3 New Positions, General Fund Department Water Safety Officer 11(1/2 time)-2 positions Fire-Ka u CONCLUSION The County of Hawaii is facing great economic challenges over the next couple of years. As a result of the continuing global economic downturn, our citizens and their government are dealing with the impact of reductions in our major industries of tourism and construction, as well as reduced property values and savings. While we scrutinize our operations and implement changes to gain efficiencies, as a business would, we are also acutely aware that government is not a private business. Loss of revenue to fund County operations is not tied to reduced demand for services or product, as it would be in a business. The need for sanitation services continues. The need for public safety and transportation services is increasing, and programs for our seniors and our children become more important than ever. The attached amended budget proposal, which remains more than $16 million lower than the current year budget, continues to focus on achieving a balance between cutting costs and utilizing available sources of revenue to adjust for real property tax and TAT shortfalls. This balanced budget insures that we will continue to meet all of our financial obligations and maintain our financial ratings and borrowing power, providing the County with a strong foundation to face future challenges. My staff and I welcome the opportunity to discuss this budget in further detail with you and to respond to any concerns that you may have. Thank you very much. Aloh "~)t )-p c-, William P. Kenoi Mayor Attachments County orHawaii is an Equal Opportunity Provider and Employer. NARRATIVE SUMMARY OF BUDGET AMENDMENTS OPERATING BUDGET FY 2009-2010 GENERALFUND REVENUES: Real property tax revenues have been adjusted to reflect the certified net taxable real property values. Driver licensing and motor vehicle responsibility fees have been revised based on the proposed increase in these fees. In intergovernmental revenues, our share of the transient accommodation taxes has been reduced, based on the latest projections of the Council on Revenues. In addition, the Domestic Violence Strategic Plan has been added and the estimates for five grants have been updated. The Department of Environmental Management has revised their departmental administrative charges due to the dispersal of the technical services section. Also, Public Works' Engineering Division has amended its charge for work on capital projects. Rental income has been added for the subleasing of the offices in the Aging and Disability Resource Center. The fund balance carryover estimate has been revised from our initial budget submission, allowing the transfer from the Budget Stabilization Fund to be eliminated. EXPENDITURES: LEGISLATIVE In cooperation with the Administration's effort to reduce the budget, the Legislative Branch has submitted budget reductions for the offices of the Clerk, Elections and the Legislative Auditor. OFFICE OF MANAGEMENT The Mayor has amended his office salaries and wages account to reflect a one-day-a- month furlough imposed on his appointed staff. DATA SYSTEMS The Data Systems Department has amended its budget to properly reflect the maintenance support needed for operations. FINANCE The Finance Department has unfunded a Real Property Tax Valuation Analyst position. The Vehicle Registration and Licensing Division has included the additional costs covered under the state funded Commercial Drivers License (CDL) and Periodic Motor Vehicle Inspection (PMVI) programs. CORPORATION COUNSEL/PLANNING/RESEARCH & DEVELOPMENT These offices have revised their payroll requirements. PUBLIC WORKS Public Works Administration and the Engineering Division have amended their salaries and wages budget requests. Engineering has also increased their overtime to cover their additional work on capital projects. POLICE The Police Department request has been amended to reflect the payroll requirements of the department. In addition, the estimates of two grants have been revised. FIRE Unable to fill all vacancies, the Fire Department has unfunded three firefighter positions. Two part-time lifeguard positions have been added to provide much needed lifeguard services at the Punalu'u Beach Park. PROSECUTING ATTORNEY The salaries and wages needs have been updated and reflected in the budget amendment. OFFICE OF AGING The salaries and wages account has been updated, based on current staffing. ELDERLYACTIVITIES The budget adjustments reflect the increase in the Senior Community Service Employment Program funding. PARKS AND RECREATION In the Parks Department, funds for the four Kohanaiki Park positions have been deleted and reallocated to cover the cost of the winter intersession program and the unreimbursed cost of the summer fun food program and to replenish funds for security and janitorial services. Salary and wages requirements for the Administration Office and zoo have been adjusted. The department also unfunded four musician positions and a Program Director position in the Elderly Activities Division. ENVIRONMENTAL MANAGEMENT The budget has been reduced with the unfunding of a clerk and a student helper position and the reallocation of the Technical Services Branch positions to the Wastewater and Solid Waste Divisions. EMPLOYEE BENEFITS The estimate of health benefits has been revised with the projected increase in premium rates. HIGHWAY FUND REVENUES: The State reimbursement for street light/traffic signal maintenance has been revised. EXPENDITURES: The salaries and wages account of the Traffic Sign & Marking Section has been updated and reflected in this amendment. SEWER FUND EXPENDITURES: The Wastewater Division has amended its budget to reflect the reallocation of the Technical Services Branch positions from the Environmental Management Administration section. VEHICLE DISPOSAL FUND EXPENDITURES: The revisions to the Vehicle Disposal Fund budget include an adjustment to its salary needs and the reallocation of funds due to the temporary suspension of the Derelict Vehicle Amnesty Program. SOLID WASTE FUND EXPENDITURES: The Solid Waste Division has amended its budget by revising their payroll needs and reflecting the adjustment associated with the addition of the Technical Services Branch positions. GENERALFUND. PART A ADJUSTMENTS REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE REVENUES 3101.10 Real Property Taxes 217,980,000 (2,780,000) 215,200,000 3202.51 Driver Licensing Fees 397,000 360,000 757,000 3202.63 MV Financial Resp Fees 32,000 20,000 52,000 3301.20 Sr Comm Svc Emp Prog 334,770 51,230 386,000 3302.03 Speed Enforcement 75,000 3,000 78,000 3302.42 HCPD Roadblock Pgm 85,000 7,000 92,000 3304.01 State Grants-in-Aid 18,183,000 (758,000) 17,425,000 3304.50 Coord Serv Purch of Serv 99,126 (99,126) 0 3304.53 PMVI Program Income 337,687 14,500 352,187 3304.56 PCDL Program Income 299,785 4,100 303,885 3305.67 Domestic Violence Strategic Plan 0 40,000 40,000 3401.46 Env Mgm Dept Admin Chgs 1,492,103 (383,169) 1,108,934 3401.51 Eng Div Svc Chg to Proj 150,000 30,000 180,000 3407.37 CSE-Health/Trans Services 0 99,126 99,126 3602.08 ADRC Rent 0 17,685 17,685 3609.10 Fund Bal From Prev Year 10,000,000 5,800,000 15,800,000 3609.94 Transfer fr Budget Stabiliztion Fund 2,000,000 (2,000,000) 0 TOTAL ADJUSTMENTS 426,346 EXPENDITURES CLERK/COUNCIL 5101.01 Clerk-Council Svc S&W 2,766,748 (161,216) 2,605,532 5101.02 Clerk-Council Svc OCE 890,380 (140,800) 749,580 5101.06 Clerk-Council Svc Equip 16,700 (3,400) 13,300 5101.10 HSAC/NACO 57,000 (4,050) 52,950 ELECTIONS 5107.02 Election Division - OCE 511,800 (21,450) 490,350 5107.10 Election Division Equip 19,720 (16,520) 3,200 LEGISLATIVE AUDITOR 5118.01 Legislative Auditor S&W 342,452 (14,412) 328,040 OFFICE OF MANAGEMENT 5111.01 Office of Manangement S&W 918,740 (41,714) 877,026 DATA SYSTEMS 5118.02 Data Systems OCE 152,004 66,165 218,169 REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE FINANCE 5125.01 Real Property Tax S&W 2,339,484 (51,312) 2,288,172 5127.12 Vehicle Regist OCE 392,033 0 392,033 5127.22 Driver License OCE 195,654 (750) 194,904 5127.26 Driver License Eqpt 12,220 750 12,970 5127.32 PMVI Program OCE 118,153 14,500 132,653 5127.42 Comm Driv Lic Prog OCE 54,514 3,600 58,114 5127.46 Comm Driv Lic Prog Eqpt 700 500 1,200 CORP COUNSEL 5131.01 Corporation Counsel S&W 2,175,741 (26,821) 2,148,920 PLANNING 5141.01 Planning S&W 2,524,304 (15,898) 2,508,406 RESEARCH & DEVELOPMENT 5161.01 Research & Dev S&W 597,196 (11,076) 586,120 PUBLIC WORKS 5173.01 Public Works Admin S&W 1,190,004 (17,784) 1,172,220 5183.01 Engineering Division S&W 1,560,796 27,141 1,587,937 POLICE 5205.01 Criminal Intell Unit S&W 673,812 3,909 677,721 5206.01 CID-JAB-Vice S&W 3,247,664 35,343 3,283,007 5207.01 So Hilo Police S&W 6,658,018 102,652 6,760,670 5208.01 N Hilo Police S&W 949,972 11,974 961,946 5209.01 Hamakua Police S&W 1,317,774 12,379 1,330,153 5210.01 Waimea Police S&W 2,365,266 48,413 2,413,679 5211.01 Kohala Police S&W 1,049,383 11,947 1,061,330 5212.01 Kona Police S&W 6,411,078 120,475 6,531,553 5212.21 Kona Police CID S&W 2,604,259 39,495 2,643,754 5213.01 Ka'u Police S&W 1,275,638 13,597 1,289,235 5214.01 Puna Police S&W 3,625,663 49,816 3,675,479 5216.15 HCPD Roadblock Program 85,000 7,000 92,000 5219.44 Speed Enforcement 75,000 3,000 78,000 FIRE 5221.01 Fire Protection S&W 28,757,537 (66,654) 28,690,883 5223.01 Ocean Safety S&W 1,373,619 53,560 1,427,179 5223.02 Ocean Safety OCE 25,589 6,714 32,303 5223.06 Ocean Safety Eqpt 2,950 6,380 9,330 REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE PROSECUTING ATTORNEY 5271.01 Prosecuting Atty S&W 3,949,763 47,266 3,997,029 5271.13 Kona Pros Atty S&W 1,389,818 1,056 1,390,874 5271.82 Domestic Violence Strategic Plan 0 40,000 40,000 OFFICE OF AGING 5411.01 Office of Aging S&W 563,908 8,016 571,924 ELDERLY ACTIVITIES 5484.01 Sr Comm Svc Emp Pgm-S&W 319,602 44,821 364,423 5484.02 Sr Comm Svc Emp Pgm-OCE 16,068 6,409 22,477 PARKS & RECREATION 5501.01 Hawaii County Band S&W 366,555 (26,594) 339,961 5503.01 P&R Admin S&W 1,119,115 25,308 1,144,423 5505.01 Parks Maint S&W 5,139,349 (139,056) 5,000,293 5505.02 Parks Maint OCE 2,173,894 119,164 2,293,058 5509.01 Summer/Intersession S&W 233,752 14,960 248,712 5509.02 Summer/Intersession OCE 106,499 7,600 114,099 5509.30 Summer Food Service - Fed 86,200 (1,200) 85,000 5519.71 EAD Recreation S&W 185,638 (49,332) 136,306 5523.01 Panaewa Zoo S&W 447,900 2,400 450,300 ENVIRONMENTAL MANAGEMENT 5671.01 Environmental Mgmt S&W 1,400,618 (416,485) 984,133 5671.02 Environmental Mgmt OCE 74,785 (1,440) 73,345 5671.06 Environmental Mgmt Eqpt 16,700 (2,000) 14,700 EMPLOYEE BENEFITS 5902.15 Health Benefits 20,300,000 700,000 21,000,000 TOTAL ADJUSTMENTS 426,346 HIGHWAY FUND PART B ADJUSTMENTS REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE REVENUES 3304.52 St Lite/Traf Signal Mtn 399,422 32,232 431,654 TOTAL ADJUSTMENTS 32,232 EXPENDITURES 5281.01 Traffic Division S&W 2,572,425 32,232 2,604,657 TOTAL ADJUSTMENTS 32,232 SEWERFUND PART C ADJUSTMENTS REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE EXPENDITURES 5631.01 Wastewater S&W 2,644,122 287,920 2,932,042 5631.02 Wastewater OCE 4,717,722 (335,000) 4,382,722 5902.15 Health Benefits 207,283 27,280 234,563 5902.17 Retirement Benefits 390,368 42,401 432,769 5902.20 FICA Employer Share 199,089 25,212 224,301 5912.93 Replacement Reserve Acct 1,545,238 (47,813) 1,497,425 TOTAL ADJUSTMENTS 0 VEHICLE DISPOSAL FUND PART G ADJUSTMENTS REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE EXPENDITURES 5641.01 Vehicle & Parts Disp S&W 147,160 (2,640) 144,520 5641.02 Vehicle & Parts Disp OCE 3,789,418 2,640 3,792,058 TOTAL ADJUSTMENTS 0 SOLID WASTE FUND PART H ADJUSTMENTS REVISED 2009-10 ADD 2009-10 ACCOUNT NO. DESCRIPTION ESTIMATE REDUCE ESTIMATE EXPENDITURES 5604.01 Landfills S&W 4,835,293 68,853 4,904,146 5604.02 Landfills OCE 8,956,601 (59,000) 8,897,601 5604.51 P-hulu W.HI L-Fill S&W 586,001 3,492 589,493 5607.01 Bev Cont Deposit Pgm S&W 129,108 (3,444) 125,664 5607.02 Bev Cont Deposit Pgm OCE 864,000 3,444 867,444 5610.01 Recycling Programs-Cty S&W 179,264 3,588 182,852 5610.02 Recycling Programs-Cty OCE 5,764,300 0 5,764,300 5902.15 Health Benefits 575,000 2,126 577,126 5902.17 Retirement Benefits 870,000 (19,059) 850,941 TOTAL ADJUSTMENTS 0