HomeMy WebLinkAboutREP FC 063 04/06/1999 1998-2000 REPORT OF THE
COMMITTEE ON FINANCE
DATE: April b, 1999 Re: Comm. No. 177/ Bill No. 45
PLACE: Councilroom
TIME: 2:00 P.M.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 45, reports as follows:
Bill No. 45, transmitted by Mayor Stephen K. Yamashiro, via Communication No. 177, dated
March 1, 1999, submits the Operating Budget for fiscal year 1999-2000.
The proposed budget totals $173,428,525, a decrease of $5,387,180 or 3.0 percent below the
current fiscal yeaz's budget. This budget proposal is based on the assumption that the Council
will authorize the refunding of the 1978 bonds, which will release the invested Sinking Fund of
approximately $7.9 million.
The expenditure plan, based on projected revenues, does not include any personnel layoffs or
collective bargaining increases. Conversely, funds for the new Kona Aquatic Center, pre-
arraignment detention facility, D.A.R.E., HI-PAL and the County Band have been provided for.
However, should the Council decide to grant pay raises for the HGEA and UPW units pending
before the Legislature the aforementioned funded programs may have to be deleted.
Revenue projections include a decrease of real property tax revenues by $1,698,500 due to
descending property valuations. A projected $5.5 million reduction in intergovernmental
revenues is due primarily to a drop in the County's share of the Transient Accommodations Tax
(TAT) collections.
Expenditure projections include a decrease of expenses in all but two categories: Debt Service
and Pension & Retirement. As stated previously, the County anticipates expending 3.0 percent
less than the current fiscal year.
Your Committee originally reviewed the Operating Budget on March 29, 1999, at the
departmental and program budget reviews held from March 29-31, 1999. The purpose of today's
Special Finance Committee meeting was to discuss recommendations to the Mayor's Operating
Budget.
Your Committee discussed azeas of Bill No. 45 (Operating Budget) where the Council might
initiate specific recommendations. There was discussion regarding the funded vacant positions
contained in the Operating Budget, as well as the initiation of a hiring freeze. Your Committee
discussed de-funding some of these positions, but acknowledged the need to assess which
vacant, funded positions are necessary for the various County departments to be able to maintain
their levels of service. Your Committee also heard discussion about raising tax revenues, which
could include an increase in the minimum tax assessed on real property and/or an increase in the
rate for the "Homeowners" class. The County's security contracts, vehicle purchases,
subscriptions and membership expenses, and the closure of the zoo were also offered as potential
areas where expenditures could be reduced or eliminated.
FC Report No. 63
Pursuant to Section 10-2, Hawaii County Charter, Preparation and Submission of Budget and
Capital Program, the Mayor shall submit to the County Council an Operating Budget for the
ensuing fiscal year.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 45 (Operating
Budget) and transmits it to Council without recommendations.
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Ayes Noes A&E EX
Respectfully submitted
CHUNC X "
ELARIONOFF X CO M EON FINANCE 1p~' 11
JACOBSON X VN'
LEITHEAD-TODD X
PISICCHIO X ~ ~
SMITH X
TvLER X AARON S.Y. C NG, CHAIR
vAGONG X FC REPORT NO.
ARAKAKI, E.O.M. X ADOPTED:MAY 2 5 1999