HomeMy WebLinkAboutCOM 0177.156 1998-2000 OONSV OF H,~'
~1~~J%' Phone: (808) 961-8272
JAMES Y. ARAKAKI k•
Chairman f~ Presiding Officer FAX: (808) 969-3291
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'99 (~flY 28 PIS 12 07
COUNTY COUNCIIppUNTY CLERK
Countyojxawaii COUNTI' OF HAWAII
Hawaii County Building
25 Aupuni Street
Hila, Hawaii 96720
May 28, 1999
TO: Council Members
FROM: James Y. Arakaki, Chai
i
RE: Operating Budget/Real roperty Tax Resolution
After considerable thought and much reluctance, I would like to propose the following amendments
to the Operating Budget. The amendments are based upon a real property tax rate increase of $1.00
in the Homeowner Classification from $4.45 to $5.45 for Building and Land. This increase would
net about $1,952,613 more tax revenues for the next fiscal year. Much has been said about the
inequities of the low Homeowner real property tax rate. This modest increase seeks to bring some
sense into our taxing structure.
The $1.00 increase in the Homeowner's rate will balance this year's budget without cutting too
deeply into services, which the public has asked that we retain. I feel this is the most prudent way
of approaching a balanced budget after reviewing people's input and concerns over the recent
months. We have heard the public outcry not to reduce or cut certain county services; we have
endured the brunt of a hiring freeze; we have delayed maintenance of our facilities and equipment;
and we have enjoyed the same real property tax rates for over six years despite our shrinking
revenue base.
Specifically, with the Governor's approval of SB 1518, CD 1, the County of Hawaii can project a
reduction in the employer's appropriation of $6,069,600, which is to be earmarked for HGEA and
UPW pay raises. Because the Governor does not intend to release an additional $2,065,600
appropriation, the County is short $1,056,457 needed to meet the total cost of the negotiated HGEA
and UPW pay raises. A portion of the revenues generated from the tax increase would help to pay
for the shortfall. The remaining revenues should be placed in a contingency relief account for
emergency purposes.
ACCOUNT NO. ACCOUNT DESCRIPTION DRAFT 3 ADJUSTMENT REVISED
0 LO-3101.01 Real Property Tax-Corr $78,263,000 +$1,952,613 $80,215,613
010-901-5901.10 ERS Pension Accum Fund-G $9,205,600 ($6,069,600) $3,136,000
010-101-5101.91 Contingency Relief $453,637 +$896,156 $1,349,793
010-91 I-591 1.04-341 Provision for Compensation Adj-G $0 +$6,069,600 $7,126,057
+ 1 056,4
File No. I ~7• ~S'6
Ref. To: CO U ~J.--e ~
Ref. Date