HomeMy WebLinkAboutCOM 0997.000 2016-2018 Harry KimDeanna S. Sako
Mayor ,,�`�! Director
.�'�.,+r �ot:•�• Nancy Crawford
1rf oF•Nt'�
Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720
(808)961-8234 • Fax(808)961-8569
July 20, 20180 cam.
Valerie Poindexter, Council Chair and --t�
Members of the Hawai`i County Council ® "'
Hawai`i County Council
25 Aupuni Street =�
Hilo, Hawaii 96720 '='
--
Re: Operating Budget
In the current Budget Ordinance 18-68, the revenue estimate from Real Property Taxes is
$313,500,000 which was formulated prior to the new(2018) Kilauea lava flow. Based upon the
destruction of numerous properties as well as devaluation of properties impacted by the lava flow,
this estimate is revised to $309,600,000, a reduction of$3,900,000. To address this deficit and
meet the County's legal obligation to have a balanced budget, it is necessary to reduce General
Fund expenditures by an equal amount.
On June 29, 2018, Ordinance 18-79 established the General Excise Tax (GET) Fund. Mass Transit
expenditure accounts which are part of the reductions from the General Fund are being re-
established in the GET Fund. The transfer to Capital Projects Fund account being established in
the GET Fund will be used for bus shelters and road improvement projects including Oneo Lane
and the Ane Keohokalole extension. Mass Transit salaries and wages, fringe benefits, revenues
from bus fares and grant-funded accounts will remain in the General Fund.
Enclosed is a bill for an ordinance amending the Operating Budget by adjusting appropriations of
various General Fund accounts to reduce expenditures by a total of$3,900,000. These reductions
are necessary to address the anticipated reduction in Real Property Tax revenues. All adjustments
maintain all legally mandated requirement(s) regarding the funding of programs and/or accounts.
Also included is a bill for an ordinance establishing revenue and expenditure accounts within the
new General Excise Tax Fund.
If there are any questions, please do not hesitate to contact me at any time.
Deanna S. Sako
Director of Finance Comm. No. 1 Q
Ref. To: 1=C�
Enc. Ref. Dote JUL 2 4 ZQ
c: Office of the Mayor
<PJI els OAr HA) Hawaii County is an Equal Opportunity Provider and Employer