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Home My WebLink AboutCOM 0755.010 2016-2018 . OF .,'., Wit Okabe ,'��'%� Managing Director Harry Kim ;+•: �'% ;��:+ Mayor • -,~'s"�'i . • == - Barbara J.Kossow +kN. lTf 131.4.0e/ Deputy Managing Director : C.-oun g of liziunig ®ffia of tip G raz~ 25 Aupuni Street,Suite 2603 • Hilo,Hawai`i 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawaii 96740 (808)323-4444 • Fax(808)323-4440 p On =�, • May 4, 2018 . *4 -t a� C,-< The Honorable Valerie Poindexter, Council Chair, -105 and Members of the Hawai`i County Council >rn County of Hawai`i 4y .*.72 25 Aupuni Street ca) • Dx Hilo, HI 96720 Aloha Council Members, As required by the Hawai`i County Charter, submitted with this message is the proposed operating budget for the County of Hawaii for the fiscal year ending June 30, 2019. This balanced budget includes estimated revenues and appropriations of$518,004,985, and includes the operations of eleven of the county's special funds as well as the general fund. This proposed balanced budget for fiscal year 2018-19 is 5.5 percent larger than last year's budget. There are very few changes in this proposed budget. The budget continues to be based on estimated revenues. The budget should be based on our objectives to provide quality service to the public, while maintaining prudent and conservative spending. EXPENDITURES The largest expenditure changes since March were to restore funding for nonprofit grants and to partially restore Council contingency funds. Other changes are detailed below. REVENUE During April, the real property tax values were certified. This provided us with final numbers to aid in balancing and making decisions about the budget. While the real property tax values did increase slightly and appeals were not as high as anticipated, this did not provide much additional funding to our budget. IMPACT- Funding was not available to restore many of the cuts made to the departments in the March budget. In addition, funding has not been included for the mass transit master plan. Without a new source Comm.No, 155•l) Ref.To; e psi? c,e ��11 110 Voik.2 County of Hawai`i is an Equal Opportunity Provider and Employer. Ref.Date li Y :0'7.:21).18._ Honorable Members of the Hawai`i County Council May 4, 2018 Page 2 of revenue, we will not be able to fully implement everything in the plan as scheduled. Mass Transit will hopefully be able to implement some parts of the plan with their proposed budget. We need to continue to look for ways to diversify our revenue stream, especially as the State Legislature is asking the voters to decide if there should be a surcharge on investment real property to support public education. The impact this could have on our ability to collect real property taxes in the future is unknown. Significant Changes to March 1, 2018 Revenue Estimates General Fund • Real Property Tax —revenue projections have increased by approximately $1.7 million due to changes in valuations from our March estimates and appeals being lower than anticipated. Solid Waste Fund • Landfill Tipping Fees —revenue projections have been increased by approximately $207,000 due to revised estimates. Housing Fund • • Housing Choice Voucher Program — revenue projections have been increased by approximately $225,000 due to an increase in grant funding. Significant Changes to March 1, 2018 Expenditure Estimates General Fund • Legislative—Contingency Relief—$270,000 was included to help fund district needs. • Public Works —funding of$200,000 was added for the Albizia hazard mitigation project. • Police — funding for operations was decreased by approximately $159,000 primarily due to costs related to the radio system being transferred to Civil Defense. • Civil Defense — funding for operating costs was increased by approximately $220,000 primarily due to costs related to the radio system being transferred from Police. In addition, $175,000 was added as the Homeland Security Grant now requires matching funds. • Grants to Nonprofit Organizations — funding was increased by approximately $500,000 to help our community. • Vacation Pay—funding was increased by approximately $255,000 due to revised estimates. Honorable Members of the Hawai`i County Council May 4, 2018 Page 3 • Provision for Compensation Adjustment — funding was decreased by $131,000 to reflect revised estimates after receiving the final arbitration decision. Vehicle Disposal Fund • Vehicle Disposal — funding of approximately $300,000 was removed from environmental cleanup and moved to debt service since some of those costs will be funded by a State Revolving Fund (SRF) loan. The fund will be paying for the debt service related to this SRF loan. Solid Waste Fund • Solid Waste—funding of approximately $235,000 was moved between expenditure accounts to better reflect the expected needs of the department. Housing Fund • Voucher Rental Subsidies —funding of approximately $225,000 was included for additional rental subsidies due to the expected increase in grant funding. Position Changes from March 1, 2018 Budget Proposal This amended budget contains no changes to this section of the budget, which proposes no new positions. Conclusion This proposed budget represents our departments' best efforts, given current funding constraints, to meet the needs of our residents in a timely and responsible fashion, while striving to maintain the level of services our residents deserve. As our economy continues its gradual recovery, we are committed to continuing investment in infrastructure, transportation, public safety, and creating safer communities. These investments are critical to the future of our Hawai`i Island. We look forward to working closely with the Hawai`i County Council to meet the needs of those that we serve. Aloha, IL"Y\—\"t Harry Kim Mayor Attachment