HomeMy WebLinkAboutCOM 0755.015 2016-2018Harry Kim
Mayor
May 22, 2018
County of Hawaii `i
Finance Department
25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720
(808) 961-8234 a Fax (808) 961-8569
Valerie Poindexter, Council Chair and
Members of the Hawai'i County Council
Deanna S. Sako
Director
Nancy Crawford
Deputy Director
Re: Establishment of an Operating Budget for Fiscal Year 2018-2019
Please see attached copies of the presentation "County of Hawai'i FY 2019 Amended Budget"
for discussion on Bill No. 110 relating to establishing an Operating Budget for the County of
Hawai'i for the fiscal year July 1, 2018 to June 30, 2019.
If there are any questions please do not hesitate to contact me at 961-8971. Thank you.
Deanna Sako
Director
Comm.1 Is
CNo.
Ref. To. s Ctaii
Ref. tate 2 2
Hawaii County is an Equal Opportunity Employer and Provider
COUNTY OF HAWAII
FY 2019 AMENDED BUDGET
MAY 22.12018
FY 2019 MAJOR CHANGES FROM FY 2018
1
• MANDATED INCREASES:
- SALARY &WAGES $9.9 MILLION
- POST EMPLOYMENT &HEALTH BENEFIT $7.4 MILLION
- RETIREMENT CONTRIBUTION $A.,4 MILLION
• REAL PROPERTY TAX SALE &EXP $5251,000
• DEBT SERVICE $620,000
• MISCELLANEOUS CLAIMS &JUDGEMENTS $5001,000
• CIVIL DEFENSE GRANT MATCH $175,000
N
FISCAL YEAR 2018-1 9 AMENDED BUDGET
$518,004,985
REVENUE CHANGES FROM. MARCH:
• REAL PROPERTY TAX REVENUE Debt Service
lKle-Dr-Acr- 4t1 7 AAII IInKl 10%
Police Services
Other 13%
Fire Services
9%
Prosecution
M 2%
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>. Parks & community
facilities
5%
Housing
Public Works
4% Community
Development
5%
Mass Transit
3%
Environmental
Management
10%
3
LOWER PUNA LAVA EVEN
T -MAY 3, 2018 TO
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Zone A — Leilani Estates & Lanipuna Gardens
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Zone B — Kapoho Beach Lots, Vacationland
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Zone C — Kapalana Sea View Estates, Puna°
Beach Palisades Black Sand Beach3" t:
Zone D — Nanawale Estates, Kapoho Papaya9 .°
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Farms, Nanawale Farm Ranch
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FINANCIAL IMPACT TO THE COUNTY
• UNANTICIPATED COSTS:
-OVERTIME (TO MAY 15)
- ROAD REPAIRS
- SECURITY, SHELTER MEALS, ETC.
- OTHER SUPPLIES & MEALS
$ 745,721
$ 560,500
$ 65,000
$ 9,900
$1,381,121
(ESTIMATE MAY 3 TO MAY 20)
• IMPACT ON REVENUES - $3 MILLION TO $6 MILLION
- REDUCED VALUATION OF IMPACTED PROPERTIES
6
- REDUCED REAL PROPERTY TAX COLLECTIONS
FINANCIAL IMPACT TO THE COUNTY (CONT'D.)
• TIMING - END OF FISCAL YEAR'-
- DIPPING IN TO FUND BALANCE
-USING DISASTER/EMERGENCY FUND
• REIMBURSEMENT FROM FEMA
- REQUIRES 25% MATCH
- NOT ALL COSTS ALLOWABLE
- CAN EXPECT DELAY IN RECEIVING REIMBURSEMENT
OPTIONS:
1) REDUCE EXPENSES
-CUT GENERAL FUND BY $3 TO $6 MILLION FOR REVENUE SHORTFALL AND
INCREASED EXPENSES
• NON-PROFIT GRANTS DECREASE $500,000
• MISC. CLAIMS &JUDGEMENTS DECREASE $100,000
• REDUCE COUNCIL CONTINGENCY RELIEF $270,000
• REDUCE R&D AG, TOURISM PROMOTION, BUS. DEVELOPMENT
• ELIMINATE ALBIZIA HAZARD MITIGATION PROJECT
• PLUS MUCH MORE
- REDUCTION IN FORCE (RIF)
8
OPTIONS (CONT'D):
2) BORROW FROM PONC OR OTHER SOURCE
- CAN BORROW UP TO $2.3 MILLION (PER CHARTER SECTION 10-8)
- MUST REPAY ON JULY 1, 2019)
3) INCREASE REAL PROPERTY TAXES -PRO-RATE SHORTFALL ACROSS THE BOARD
Class
£
Current Rate
3M
6M
9M
r,
a Residential 11.10
11.30 11.45
11.55
h
,Apartment
11.70
11.90
s
12.00
S
12.10
......................................_...._.._.............._.................................._....o............................_
E
t Commercial
...
10.70
10.90
11.00
11.15
I ndustria 1
10.70
10.90
11.00
11.15
Agricultura I
9.35
9.50
9.55
µ
9.60
Conservation
11.55
11.80
11.90
12.00
__.=
Hotel & Resort11.55
11.80
11.90
12.00
t
9
Affordable Rental
6.15
6.25
6.30
6.45
I Homeowners
6.15
6.25
6.30
1
6.45
OPTIONS (CONT'D):
4) GET SURCHARGE
- $25 MILLION IN FY19
- MOVE MASS TRANSIT TO HIGHWAY FUND ($4.6 MILLION)
- $4.6 MILLION FREED UP IN GENERAL FUND COULD OFFSET INCREASED
DISASTER EXPENSES
- PAY FOR PORTION OF FEMA MATCH
10
OTHER IMPACTS:
• BOND RATING
• BUDGET STABILIZATION FUND AND FUND BALANCE
- TARGET AMOUNT SET BY COUNTY CODE IS 5 - 15% OF GENERAL FUND TOTAL
EXPENDITURES (HAWAVI COUNTY CODE SECTION 2-220)
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MAHALO.1-
12