HomeMy WebLinkAboutREP FC 064 04/30/2013 (2012-2014)DATE: April 30, 2013
PLACE: Council Chambers
Kona, Hawai i
TIME: 1:00 P.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
REPORT OF THE
COMMITTEE ON FINANCE
Re: Comm. No. 150 /13ill No. 39
Your Committee on Finance, to which was referred Bill No. 39, reports as follows:
Bill No. 39, transmitted by Mayor William P. Kenoi, via Communication 150 dated February 28,
2013, submits for consideration the proposed Operating Budget for the County of Hawaii for the
Fiscal Year July 1, 2013 to June 30, 2014. This balanced budget includes estimated revenues and
appropriations totaling $370,778,473 (Part I- Volume I), and includes the operations of eleven of the
County's special funds as well as the General Fund. This budget is 8.0 percent less than the budget in
effect when Mayor Kenoi's administration took office in 2008. This proposed balanced budget does
not require any increase in property taxes.
The Mayor's budget message discusses highlights of the operating revenues and expenditure
proposals. It attaches informational tables comparing 1) budgeted expenditures for FY 2012 -13 and
proposed for FY 2013 -14 for each fund; 2) a summary of projected FY 2013 -14 revenues from
various sources and the change in those from the current budget; and 3) a summary of projected FY
2013 -14 expenditures and the change in those from the current budget. Also listed are significant
changes to operating expenditures in several categories.
Also submitted is the Operating Budget Proposal (Part I, Volume II), which describes the
departments and their programs, program objectives, highlights, program measures, expenditures, and
positions.
Additionally, Communication No. 150.1 from Mayor William P. Kenoi, dated February 28, 2013,
transmitts a booklet containing reports titled Six Month Progress Report on Program Objectives.for
FY 2012 -13 and Final Status Report on Program Objectives for FY 2011 -12. These reports provide
information to the Council to assist in the evaluation of program accomplishments during the first six
months of the current fiscal year and for the previous 2011 -12 fiscal year.
The highlights of the operating revenue proposal are as follows:
• Real Property Tax — Real property tax revenues are expected to increase by 1.2 %, or
$2.4 million, due to an estimated 1.0% rise in taxable values and a slight increase in interest
payments.
FC Report No. 64
FC -64
Page 2 April 30, 2013
• Public Utilities Franchise Tax — Increased public utility revenues are expected to result in
an increase of $1.0 million, or 9.5% in franchise tax revenue.
• Licenses and Permits — Increases in building permit revenue ($400,000), liquor license fees
($350,000) and vehicle weight tax revenue ($200,000) have contributed to an increase of
$1.1 million, or 7.0% in this revenue source.
• Fund Balance Carryover — The higher projection of carryover savings is attributed to the
cumulative effect of successful cost cutting measures for the past several years and additional
spending restrictions in the current year.
The highlights of the operating expenditure proposal are as follows:
General Government
• The Geothermal Relocation and Community Benefits Fund Appropriations are
increased by $1.3 million for anticipated property purchases under the geothermal
relocation program.
• Salary and wage increases in many departments are the result of the ending of the
furlough program. The increase is offset by other expenditure cuts in various areas.
Public Safety
• Fire. The Fire Department has increases of approximately $200,000, primarily for fire
protection costs.
• Liquor Control. Funds are budgeted to pay $350,000 of the cost to renovate the Hilo
office and remove asbestos. Additional funds will be appropriated in subsequent years to
complete payment of the full cost.
• Prosecuting Attorney. Additional grant funding revenue of about $400,000 is anticipated
and appropriated for various programs.
• Highway Fund. An increase of approximately $200,000 results from the combination of
ending the furlough program and adding a new traffic safety project.
Debt Service
• Transfer to Debt Service. In the current fiscal year the County experienced a temporary
reduction in debt service expense. With the beginning of principal payments on bonds
issued in 2010, the transfer to debt service is increasing.
Pension & Retirement
• Retirement Benefits. Contributions to the employee retirement system will increase by
approximately 4.5% as the result of rate increases established by the state Legislature.
Miscellaneous
• Vacation Pay. This provision which assists with covering the cost of vacation payouts for
employees separating from the County is reduced by $500,000.
FC -64 Page 3 April 30, 2013
• Miscellaneous Insurance Claims & Judgments. The appropriation to cover various
smaller claims and judgments against the County is reduced by $200,000.
• Wastewater Replacement Reserve Account. Funding appropriated to set aside for large
equipment rehabilitation and replacement must be reduced by approximately $900,000 as
the Sewer Fund fund balance and replacement reserve fund balance have been exhausted.
A summary of estimated FY 2013 -14 revenues and expenditures are shown below:
REVENUES
Intergovernmental Rev.
Federal Grants 2,883,774 3,044,785 161,011 5.58
Federal Grants
FY 2012 -13
FY 2013 -14
FY 14 -FY 13 $
FY 14 -FY 13
Account Description
Budget
Estimate
Variance
% Variance
General Fund Revenues
34,583,807
34,846,968
263,161
.76
Taxes
3,003,642
3,256,773
253,131
8.43
Real Property Taxes
198,300,000
200,650,000
2,350,000
1.19
Public Svc Co Tax
9,377,600
10,145,000
767,400
8.18
TTL Taxes
207,677,600
210,795,000
3,117,400
1.50
Licenses & Permits
5,372,021
5,764,052
392,031
7.30
Bus. Lic & Permits
3,032,102
3,378,068
345,966
11.41
Non -Bus. Lic & Permits
2,879,200
3,355,500
476,300
16.54
TTL Lics & Permits
5,911,302
6,733,568
822,266
13.91
Intergovernmental Rev.
Federal Grants 2,883,774 3,044,785 161,011 5.58
Federal Grants
691,050
814,050
123,000
17.80
Federal Grants
478,000
382,500
(95,500)
(19.98)
State Grants
34,583,807
34,846,968
263,161
.76
State Grants
3,003,642
3,256,773
253,131
8.43
Federal Grants
3,512,060
3,149,917
(362,143)
(10.31)
TTL Intergovernmental Rev
45,152,333
45,494,993
342,660
.76
Charges for Services
General Government
5,372,021
5,764,052
392,031
7.30
Public Safety
112,123
112,123
-
-
Highways & Streets
824,000
839,000
15,000
1.82
Parks & Recreation
1,159,400
1,231,400
72,000
6.21
TTL Charges for Services
7,467,544
7,946,575
479,031
6.41
FC -64 Page 4 April 30, 2013
TTL Fines & Forfeitures 1,388,600 1,373,500 (15,100) (1.09)
Miscellaneous Revenues
Interest Earnings
100,000
200,000
100,000
100.
Rents
186,080
179,240
(6,840)
(3.68)
Disp of Fixed Assets
31,000
31,000
-
-
Contrib /Dons FR Prvt Src
506,000
530,000
24,000
4.74
Reimbursements & Transfers
22,614,501
23,749,966
1,135,465
5.02
Sundry & Misc
249,000
280,500
31,500
12.65
TTL Miscellaneous Revenues
23,686,581
24,970,706
1,284,125
5.42
TTL General Fund Revenues
291,283,960
297,314,342
6,030,382
2.07
Other Fund Revenues
Highway Fund
32,773,050
32,942,878
169,828
.52
Sewer Fund
9,321,149
8,162,852
(1,158,297)
(12.43)
Cemetery Fund
10,000
10,000
-
-
Bikeway Fund
171,000
171,000
-
-
Beautification Fund
157,920
182,670
24,750
15.67
Vehicle Disposal Fund
2,587,372
2,475,035
(112,337)
(4.34)
Solid Waste Fund
25,400,661
24,971,520
(429,141)
(1.69)
Golf Course Fund
1,139,672
1,171,445
19,359
1.73
Geothermal Rel & Comm
Rev Fund
600,000
1,700,000
1,100,000
183.33
Housing Fund
17,909,026
17,235,660
(673,366)
(3.76)
Kulaimano Elderly Hsg Fund
315,312
314,112
(1,200)
(.38)
Ouli Ekahi Hsg Fund
278,375
335,550
57,175
20.54
Geothermal Asset Fund
50,000
300,000
250,000
500.
TTL Other Funds
90,713,537
89,972,722
(740,815)
(.82)
TTL Funds
381,997,497
387,287,064
5,289,567
1.38
Less: Interfund Transfers
16,874,328
16,508,591
(365,737)
(2.17)
FC -64 Page 5 April 30, 2013
Estimated (e)
Net Revenues (All Funds)
365,123,169
370,778,473
5,655,304
1.55
EXPENDITURES
FY 2011 -12
FY 2012 -13
FY 13 -FY 12 $
FY 13 -FY 12
Account Description
Budget
Estimate
Variance
% Variance
General Fund
Expenditures
Legislative
3,100,704
3,292,020
191,316
6.17
Elections
868,879
935,938
67,059
7.72
Legislative Auditor
786,484
802,355
15,871
2.02
Executive
1,276,657
1,342,014
65,357
5.12
Information Tech
1,631,339
1,631,339
-
-
Finance
9,833,353
10,208,465
375,112
3.81
Law /Corp Counsel
2,532,561
2,572,176
39,615
1.56
Planning
2,847,535
2,975,000
127,465
4.48
Human Resources
1,707,354
1,784,286
76,932
4.51
Research &
Development
2,951,619
2,507,066
(444,553)
(15.06)
Building
4,948,692
4,720,150
(228,542)
(4.62)
Public Works Admin
1,215,174
1,238,364
23,190
1.91
Automotive
5,743,679
5,598,589
(145,090)
(2.53)
Engineering
1,237,009
1,293,368
56,359
4.56
Police
53,948,484
53,755,453
(193,031)
(.36)
Fire
37,382,687
37,581,388
198,701
.53
Protective Inspection
1,964,771
2,088,278
123,507
6.29
Flood Control
309,000
330,000
21,000
6.80
Animal Control
1,982,500
1,982,500
-
-
Civil Defense
1,231,059
955,728
(275,331)
(22.37)
FC -64 Page 6 April 30, 2013
Liquor Control
1,469,102
1,844,268
375,166
25.54
Prosecuting Attorney
7,830,753
8,234,461
403,708
5.16
Mass Transit
3,300,812
3,826,757
525,945
15.93
County
Physicians /Health
133,825
133,825
-
-
Aging /Health &
Welfare
2,323,947
2,587,188
263,241
11.33
Cemeteries
348,944
360,498
11,554
3.31
Schools
58,500
58,500
-
-
Non - Profit Grants in
Aid
1,500,000
1,500,000
-
-
Elderly Activities
3,353,637
3,576,157
222,520
6.64
Parks & Recreation
16,421,346
16,565,063
143,717
.88
Environmental Mgmt
1,006,997
1,055,483
48,486
4.81
Transfers to Other
Funds
21,440,328
21,523,216
82,888
.39
Transfer to Debt Svc
35,250,229
39,192,449
3,942,220
11.18
Pensions & Contribs
55,096,000
55,862,000
766,000
1.39
Miscellaneous
4,250,000
3,400,000
(850,000)
(20.)
Block Grants
-
-
Home Grants
-
-
Housing Grants
-
-
Housing Grants
-
-
TTL General Fund
Expenditures
291,283,960
297,314,342
6,030,382
2.07
Other Fund
Expenditures
Highway Fund
32,773,050
32,942,878
169,828
.52
Sewer Fund
9,321,149
8,162,852
(1,158,297)
(12.43)
Cemetery Fund
10,000
10,000
-
-
FC -64
Bikeway Fund
Beautification Fund
Vehicle Disposal Fund
Solid Waste Fund
Golf Course Fund
Geothermal Rel &
Comm Rev Fund
Housing Fund
Kulaimano Elderly Hsg
Fund
Ouli Ekahi Hsg Fund
Geothermal Asset Fund
TTL Other Fund
Expenditures
Total Funds
Less: Inter -Fund
Page 7 April 30, 2013
171,000
171,000
-
-
157,920
182,670
24,750
15.67
2,587,372
2,475,035
(112,337)
(4.34)
25,400,661
24,971,520
(429,141)
(1.69)
1,139,672
1,171,445
31,773
2.79
600,000
1,700,000
1,100,000
183.33
17,909,026
17,235,660
(673,366)
(3.73)
315,312
314,112
(1,200)
(.38)
278,375
335,550
57,175
20.54
50,000
300,000
250,000
500.
90,713,537
89,972,722
(740,815)
(.82)
381,997,497
387,287,064
5,289,567
1.38
Transfers 16,874,328 16,508,591 (365,737) (2.17)
Estimated (e)
Net Expenditures 365,123,169 370,778,473 5,655,304 1.55
Your Committee originally reviewed the Operating Budget in conjunction with departmental
program reviews on April 10 through April 12, 2013. Pursuant to Section 10 -4, Hawaii County
Charter, the Council also conducted a public hearing on the proposed FY 2013 -14
Operating and Capital Budgets in Kona on April 16, 2013, which was videoconferenced to the
Hilo, Pahoa, and Waimea Council offices.
During the budget review, Mayor William P. Kenoi reviewed his proposed budget for the
Council. He reminded Members that for four consecutive years efforts have been made to
reduce the size and cost of government in a strategic and responsible manner that maintain
critical infrastructure and public services. Mayor Kenoi commented that despite the reduction in
government, it is a priority to maintain core County services such as public safety, civil defense,
fire, and police which keep the community safe. He stated the importance of protecting services
such as Parks and Recreation, Mass Transit and Office of Aging, all of which offer support and
service to the community. Furthermore, the continuing decrease in tax collections and cost
increases in areas such as employee health care, retirement costs and unpredictable fluctuations
in utilities and fuel may cause services to cost more next year.
FC -64 Page 8 April 30, 2013
Upon review of the Mayor's amended budget submittal on May 2, 2013, the Council may
propose amendments as necessary.
Your Committee on Finance is in accordance with the purpose and intent of Bill No. 39, and
recommends its passage on first reading.
sc
Respectfully submitted,
COMMITTEE ON FINANCE
f
VALERIE T. POINDEXTER, CHAIR
FC REPORT NO.: 64
ADOPTED: MAY j_3 013
AYES
NOES
A &E;
EX
EOFF
X
FORD
X
ILAGAN
X
KANUHA
X
KERN
X
ONISHI
X
POINDEXTER
X
WILLE
X
YOSHIMOTO
X
Respectfully submitted,
COMMITTEE ON FINANCE
f
VALERIE T. POINDEXTER, CHAIR
FC REPORT NO.: 64
ADOPTED: MAY j_3 013