HomeMy WebLinkAboutCOM 0143.000 2014-2016William P. Kenoi
Mayor
Walter K.M. Lau
Managing Director
Randall M. Kurohara
Deputy Managing Director
County of Hawaii
Office of the Mayor
25 Aupuni Street, Suite 2603 - Hilo, Hawaii 96720 - (8o8) 961-8211 - Fax (8o8) 961-6553
KONA: 74-5o44 Ane Keohokalole Hwy., Bldg. C - Kailua-Kona, Hawaii 96740
(808)323-4444 - Fax(8o8)323-4440 r
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February 27, 2015
The Honorable Dru Mamo Kanuha, Council Chair
and Members of the Hawai'i County Council v
County of Hawaii
25 Aupuni Street
Hilo, HI 96720
Aloha Council Members:
As required by the Hawaii County Charter, submitted with this message is the proposed
operating budget for the County of Hawaii for the fiscal year ending June 30, 2016. This
balanced budget includes estimated revenues and appropriations of $434,667,890 and includes
the operations of eleven of the county's special funds as well as the general fund.
This fiscal year (FY) 2015-2016 proposed balanced budget is $17,752,059 or 4.3 percent larger
than last year's budget. Our administration has always worked hard to provide public safety,
core county services, and much needed investments in infrastructure while working through
the realities of the economic climate created by the great recession. This budget reflects our
commitment to maintaining the highest level of government services by wisely using county
resources to meet the community's needs.
This budget will not raise property tax rates.
Comm. No. 3 _
County of Hawaii is an Equal Opportunity Provider and Employer. W. TO: _
Ref. Date
Honorable Members of the Hawaii County Council
February 27, 2015
Page 2
The following table describes the budgeted expenditures for FY 2014-15 and the proposed
budget for FY 2015-16 for each fund:
OPERATING BUDGET BY FUND
(Amounts in thousands)
The following table presents a summary of projected FY 2015-16 revenues from various sources
and the changes from the current budget:
Source
REVENUES BY SOURCE.
(Amounts in thousands)
Percent
FY15-16 of
Amount Total
Increase
(Decrease)
From Percent
FY14-15 Increase
Amount (Decrease)
Real Property Tax
FY14-15
FY15-16
Increase
Percent
FUND
Budget
Proposed
(Decrease)
Change
General Fund
$318,571
$330,489
$11,918
3.7%
Highway Fund
35,594
36,698
1,104
3.1%
Sewer Fund
10,743
12,232
1,489
13.9%
Cemetery Fund
10
10
0
0.0%
Bikeway Fund
171
213
42
24.6%
Beautification Fund
452
489
37
8.2%
Vehicle Disposal Fund
3,655
4,478
823
22.5%
Solid Waste Fund
26,768
28,111
1,343
5.0%
Golf Course Fund
1,233
1,336
103
8.4%
Geothermal Royalty Fund
1,700
1,700
0
0.0%
Housing Fund
17,969
18,862
893
5.0%
Geothermal Asset Fund
50
50
0
0.0%
$416,916
$434,668
$17,752
4.3%
The following table presents a summary of projected FY 2015-16 revenues from various sources
and the changes from the current budget:
Source
REVENUES BY SOURCE.
(Amounts in thousands)
Percent
FY15-16 of
Amount Total
Increase
(Decrease)
From Percent
FY14-15 Increase
Amount (Decrease)
Real Property Tax
$241,500
55.6%
$7,400
3.2%
Public Service Company Tax
10,340
2.4%
0
0.0%
Fuel Tax
7,390
1.7%
60
0.8%
Public Utilities Franchise Tax
11,579
2.7%
532
4.8%
Licenses and Permits
22,179
5.1%
243
1.1%
Revenue from Use of Money & Property
1,473
0.3%
352
31.4%
Intergovernmental Revenue
65,078
14.9%
3,142
5.1%
Charges for Services
23,963
5.5%
1,156
5.1%
Other Revenues
9,769
2.3%
1,277
15.0%
Fund Balance Carryover
41,397
9.5%
3,590
9.5%
$434,668
100.0%
$17,752
4.3%
Honorable Members of the Hawaii County Council
February 27, 2015
Page 3
REVENUE CHANGES
The major changes in projected revenues are as follows:
Real Property Tax. Real property tax revenues, including penalties and interest, are expected to
increase by 3.2%, or $7.4 million, due to new construction and an increase in taxable values.
Public Utilities Franchise Tax. Increased public utility revenues are expected to result in an
increase of $532,000, an increase of 4.8% in franchise tax revenue.
Intergovernmental Revenue. Increased grant revenues of $3.1 million reflect those grants
we are aware of at this time.
Charges for Services. Charges for services are expected to increase $1.2 million and reflect the
increase in usage of various County services.
Other Revenues. Increased other revenues of $1.3 million includes increases in real property tax
sales and program income.
Fund Balance Carryover. This budget reflects $3.6 million more in carryover savings from the
current year operations for all funds.
The following table presents a summary of projected FY 2015-16 expenditures from various
sources and the changes from the current budget:
Function
General Government
Public Safety
Highways & Streets
Health, Education & Welfare
Culture & Recreation
Sanitation & Waste Removal
Debt Service
Pension & Retirement
Health Fund
Miscellaneous
EXPENDITURES BY FUNCTION
(Amounts in thousands)
Percent
FY15-16 Of
Amount Total
Increase
(Decrease)
From Percent
FY14-15 Increase
Amount (Decrease)
$49,915
11.5%
$93
0.2%
132,327
30.4%
10,999
9.1%
26,711
6.1%
1,160
4.5%
26,592
6.1%
1,008
3.9%
21,675
5.0%
616
2.9%
41,219
9.5%
3,660
9.7%
36,736
8.5%
(1,894)
-4.9%
43,430
10.0%
4,052
10.3%
38,932
9.0%
1,767
4.8%
17,131
3.9%
(3,709)
-17.8%
$434,668
100.0%
$17,752
4.3%
Honorable Members of the Hawaii County Council
February 27, 2015
Page 4
Increases in salary and wages are reflected in all functional areas of county government. After
several years of furloughs or no wage increases, new wages were negotiated for all bargaining
units represented in the county. All salary and wages are reported in each department with the
exception of the few bargaining units with contracts that end on June 30, 2015. The new
contracts will need to be approved by the legislature and each County and are estimated in the
provision for compensation adjustment account.
Major changes in projected expenditures are as follows:
General Government
• Public Works. Appropriations decreased by approximately $685,000, primarily due to
expected savings in fuel.
• These savings were offset by the increases to salary and wages explained above.
Public Safety
• Police. Police received $1.8 million in additional grant funding.
• The majority of other changes in public safety are attributable to salary and wage
increases explained above.
Highways & Streets
• Mass Transit Agency. Increased appropriations of approximately $1.0 million are
primarily attributable to an increase in the paratransit program as mandated by the Federal
Transit Administration.
Health, Education & Welfare
• Aging. Increased appropriations of $248,000 are due to additional grant funding for the
Area Plan on Aging.
• Housing. Increase appropriations of $900,000 are primarily due to additional grant
funding of $615,000 for housing subsidies.
Sanitation & Waste Removal
• Wastewater Fund. An increased appropriation of approximately $1.2 million is related to
additional expenditures required for the Hilo Outfall as well as other aging plant and
equipment.
• Vehicle Disposal Fund. An increased appropriation of approximately $800,000 will
provide additional funding for environmental cleanup.
• Solid Waste Fund. The appropriations for organic waste and equipment repairs and
maintenance increased by about $800,000 because of increased costs.
Honorable Members of the Hawaii County Council
February 27, 2015
Page 5
Debt Service
• Transfer to Debt Service. As the result of previously refinancing old bond issues,
there is a reduction in debt service cost of $1.9 million for the upcoming year.
Pension & Retirement
• Retirement Benefits. Contributions to the employee retirement system will increase by
approximately $4.1 million as the result of new salary and wage costs and rate increases
established by the state legislature.
Health Fund
• Health Benefits. Contributions to the state employee health system will increase by
$1.8 million, which includes an increase of $1.2 million for future post -employment
health benefits.
Miscellaneous
• Provision for Compensation Adjustment. This provision contains the estimated cost of
salary and wages pursuant to contract negotiations that have not been fully approved, and
decreased by about $3.8 million. The $2.0 million appropriation is related to pending
negotiations for Bargaining Units 2, 3 and 4.
Conclusion
This proposed budget represents our departments' best efforts to meet the needs of our growing
community in a timely and fiscally responsible fashion. Our administration is committed to
investing in our future, maintaining core services and meeting our obligations to our employees.
Our economy is in a state of gradual recovery. We believe our investments in infrastructure,
renewable energy, and parks and recreation are critical to the future of Hawai'i Island. We look
forward to working closely with the County Council to put forth a balanced budget that ensures
public safety and meets the needs of our community.
Aloha,
William P. Kenoi
MAYOR
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