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Harry KimDeanna S. Sako <br /> Mayor ,,�`�! Director <br /> .�'�.,+r �ot:•�• Nancy Crawford <br /> 1rf oF•Nt'� <br /> Deputy Director <br /> County of Hawaii <br /> Finance Department <br /> 25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720 <br /> (808)961-8234 • Fax(808)961-8569 <br /> July 20, 20180 cam. <br /> Valerie Poindexter, Council Chair and --t� <br /> Members of the Hawai`i County Council ® "' <br /> Hawai`i County Council <br /> 25 Aupuni Street =� <br /> Hilo, Hawaii 96720 '=' <br /> -- <br /> Re: Operating Budget <br /> In the current Budget Ordinance 18-68, the revenue estimate from Real Property Taxes is <br /> $313,500,000 which was formulated prior to the new(2018) Kilauea lava flow. Based upon the <br /> destruction of numerous properties as well as devaluation of properties impacted by the lava flow, <br /> this estimate is revised to $309,600,000, a reduction of$3,900,000. To address this deficit and <br /> meet the County's legal obligation to have a balanced budget, it is necessary to reduce General <br /> Fund expenditures by an equal amount. <br /> On June 29, 2018, Ordinance 18-79 established the General Excise Tax (GET) Fund. Mass Transit <br /> expenditure accounts which are part of the reductions from the General Fund are being re- <br /> established in the GET Fund. The transfer to Capital Projects Fund account being established in <br /> the GET Fund will be used for bus shelters and road improvement projects including Oneo Lane <br /> and the Ane Keohokalole extension. Mass Transit salaries and wages, fringe benefits, revenues <br /> from bus fares and grant-funded accounts will remain in the General Fund. <br /> Enclosed is a bill for an ordinance amending the Operating Budget by adjusting appropriations of <br /> various General Fund accounts to reduce expenditures by a total of$3,900,000. These reductions <br /> are necessary to address the anticipated reduction in Real Property Tax revenues. All adjustments <br /> maintain all legally mandated requirement(s) regarding the funding of programs and/or accounts. <br /> Also included is a bill for an ordinance establishing revenue and expenditure accounts within the <br /> new General Excise Tax Fund. <br /> If there are any questions, please do not hesitate to contact me at any time. <br /> Deanna S. Sako <br /> Director of Finance Comm. No. 1 Q <br /> Ref. To: 1=C� <br /> Enc. Ref. Dote JUL 2 4 ZQ <br /> c: Office of the Mayor <br /> <PJI els OAr HA) Hawaii County is an Equal Opportunity Provider and Employer <br />