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BUDGET & FINANCE COMMITTEE
DELIBERATION AND PRELIMINARY DECISION-MAKING
FY 2010-2011 ANNUAL BUDGET
MAY 10, 2010
A Deliberation and Decision Making Meeting on the FY 2010-2011 Annual Budget of the
County of Kaua`i was called to order by Daryl W. Kaneshiro, Chair, Budget & Finance Committee,
on Monday, May 10, 2010, at 9:29 a.m. at the Council Chambers, 3371-A Wilcox Road, Lihu`e,
Kaua`i, Hawai`i and the presence of the following was noted:
Honorable Bill "Kaipo" Asing, Council Chair
Honorable Tim Bynum
Honorable Dickie Chang
Honorable Jay Furfaro
Honorable Daryl W. Kaneshiro
Honorable Lani T. Kawahara
Honorable Derek S. K. Kawakami
The meeting proceeded as follows:
Mr. Kaneshiro: Before I suspend the rules to provide the public an
opportunity to comment or speak, let me just outline the process that I'll be using for this decision-
making session. First of all, you know, I want to conduct an effective session, as we have spent the
past two months reviewing the discussing the budget. I also want to note that many of the questions
that came about through the budget review session, we've got the answers back from the
administration, and in fact, looking over some of the questions and answers, we find that we've had
many of those coming to us from about the 15th of April `till May 3, I believe, was the last
communication that we've had. So this would have given our members the ample time to review
those questions and answers that we had sent to them. I would like to try to and complete this
session by tonight, but if we can't, we'll continue tomorrow and hopefully we can do it before lunch.
But if we can't, well you know, we have two day posted for this decision making. So we'll carry on
accordingly. Again, you know, like I said, this session is really for decision making and not so much
for budget review again because we went through the process. We've got many of our questions to
the admuustration, many of the answers came back as I stated previously, and I want to also note
that the decisions and amendments that are made by this session will be publicly posted and passed
out to the committee at the May 19, 2010 committee meeting, and then it will be passed on for
second reading by the council at the May 26, 2010 council meeting. And in light of the above, I want
to ask Councilmembers to try to keep their comments focused on budget decisions, and what I'll do is
I'll give all councilmembers the opportunity to comment on any issue, and you know, as we go down
the list, the decision question or call for the vote will be put to the body. So we can go through it, go
through the process, and then we're going to call for the vote on the line-by-line items. And if
necessary, four votes by the body will be grounds to end discussion. If we keep on going on for
discussion for hours and hours that's fine too, but at some point, you know, somebody gotta call for
the vote. I'm not going to limit you to have discussions, you know what I mean. If it feels or you feel
at that point that you need to call for the vote, then members, committee members, you have the
opportunity to do that.. Any items receiving five votes will be included into the council's budget. So
with that, setting forth the procedures, do we have any questions on that? Anyone has any
questions? Mr. Furfaro, go ahead.
Mr. Furfaro: Yes Chairman, I guess I have a short presentation amongst
the councilmembers, and I'll be given the appropriate time...
Mr. Kaneshiro: Yes, absolutely, absolutely.
Mr. Furfaro: I kind of want to reconcile from ending audit June 30 to
where we're at right now.
Mr. Kaneshiro: Absolutely. What I...yeah, and I was going to go through the
procedures after that for us to follow, but basically, I wanted to line the basic, you know, overall out
first and... Okay, so what I would first do, just to let you know again, to recoup of what
I...statements I made is that I will suspend the rules and provide the public an opportunity to speak
on any part of the budget, okay. And then followed by that, I wanted to bring our finance director up
to make his presentation, so he'll come up do his presentations. And then upon conclusion of that,
that's when I will call the meeting back to order, then we'll be what we call into a decision making
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process, more or less, and this... at that time would provide each member the opportunity to speak
and do their presentation. So I said 5 minutes, and another 5 minutes, or whatever, but I mean you
know, it's just in case all 7 of us got to do it. So you know, I don't know, but just to be cautious, but if
not, no problem, we'll go, you know, however long you need to make the presentation. And then you
know, anything you wanted to comment on the budget itself, so each member, if you have a
presentation, that will be your time to do that. Okay, so any questions with that, members, about
you know, first going up 5 minutes, and extend another 5 minutes if need be, and then give the next
member the opportunity do 5, then 5 minutes need be, and you can always come back if we have
more to add to it. Are we all clear on that? Okay, alright, with that, I guess it's time for me to
suspend the rules and have our speakers or anyone in the chambers who wanted to speak to give
them the opportunity to do so. And before I do that, do we have any written testimonies that were
presented to us for this budget session...for this part of the budget session. I know that through the
reviews, the public hearings, and so forth we've had, and now we're talking about the supplemental
budget. Okay, I do have one from Mr. Fred Dente, is that correct? And Andrea Brower, Malama
Kaua`i. Okay...oh, we do have couple more. Alright, so we're going to go ahead and make
this...yeah, copies have been circulated to all members, and we'll have this recorded for the record.
Okay, so we do have some testimonies. A majority I'm looking at is regarding the Kaua`i Bus. So
just to let you know. I have, I believe, one, two, three, four, five, six about buses. Okay? Alright
with that, I will suspend the rules, and do we have anyone signed up to speak this morning? If not,
anyone here in the Chambers wishing to make testimony or speak on the budget? You have the
opportunity to do so.
There being no objections, the rules were suspended.
BEN SULLIVAN: Ben Sullivan for the record. I guess somebody has to go first.
Thank you Council for the opportunity to testify. I'm speaking today on behalf of the bus, and glad
to hear that you did receive that testimony. I'm going to make it brief, but the thing I wanted to
present to you today was there was a group of us that submitted testimony on the fifth with regards
to really a broad group of...a broad group of organizations and nonprofit groups and businesses
around the community that all support the bus very strongly. They included KCC, Wilcox hospital,
Sierra c1ub...I won't read the whole list, because I know you have it. Only in the five days since we
delivered that testimony, we had quite a number of people that really wanted to get in on the action,
and I think really, what I want to testify to today is that this issue is something that has support
broader than we even tapped. As soon as people started to know that we were pushing on this,
people were calling us out of the blue and saying can we join, can we join. So just in 5 days, Kilauea
Neighborhood Association, KCC sustainability community, the student group at KCC, Green Party
of Hawai`i, the Food Bank, American federation for the blind, League of Women Voters all joined in,
and that was just in a short period. I have some individual testimonies from some of the leadership
of some of those groups. I'm just going to pick one or two real briefly.
Helen Cox, chancellor at Kaua`i Community College, says Kaua`i Community College
recognizes that many of our students, faculty, and staff travel by bus, and that many more would
travel by bus if routes and schedules were expanded. Most of our students have limited finances, 47
percent, based on some form of financial aid, and the bus provides a convenient and cost-effective
way to continue their education. If routes and schedules are cut or limited, it truly might lead to
some of our students not being able to continue their higher education. We are also a major
destination, so serving the college with the bus has led and will continue to lead to fewer cars on our
roads. For these reasons, as well as because of my ongoing desire to move toward a more sustainable
Kaua`i, I support the Kaua`i Bus. That's Helen Cox, Chancellor, KCC.
I'm not going to read them all, so with that, I just want to offer up an additional piece of
testimony, and this is separate. I want to make it a very clear distinction. Separate from this
testimony here, I also serve on the county's transit advisory committee. And the last time that
committee met, we didn't formulate an extensive amount of testimony, but we agreed on three basic
principles about the Kaua`i Bus that we thought were important to testify to to the county council.
As an aside, really briefly, I was supposed to write testimony and circulate it, which I didn't have an
opportunity to do, so I'm just reading from the minutes here. The bus's role in the community is in
supporting agencies and nonprofits, such as Easter Seals, Kaua`i youth network, etc., is an essential
one. The bus's role...
Mr. Kaneshiro: I'll give you the opportunity for another three minutes,
go ahead
Mr. Sullivan: The bus's role for individual family budgets is also an
essential one. The ability for the bus to allow people to save money in these difficult times, as you all
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are well aware. And thirdly, how ultimately what it comes down to is that the bus is one of these
rare opportunities for people in these essential times to just get by and survive. We're talking about
an opportunity for people to really find savings. It's not always the preferred way to travel. It's not
always the way people want to go. But if we're getting cut and we're getting furloughs and we're
doing all the hard things that we have to do and respecting the job you all have to do, then the bus is
one of those means that really allows us to do that, and as a community to keep more money
on-island and to have less going to parts unknown around the world. I'm not going to go on beyond
that. I thank you for your time. And if there's any questions, I'm happy to respond.
Mr. Kaneshiro: Okay. Mr. Furfaro has a question for you.
Mr. Furfaro: Thank you very much for being here this morning. I wanted
to talk a little bit about there is a movement, and I'll be touching on it later when I make my
presentation, to see about re-establishing $171,500 to fill the driver portion of the bus furlough, and I
think there is a number of us here on the council that support that, especially since we grew the bus
over the last three years, every year. I also want to say that we will be in the very near future as it
relates to the bus allocating out to different committee chairs some further study on the bus and a
fuel tax that could be six cents and could be earmarked specifically for the bus for further expansion.
So you know, we have two parts going on here, Ben. One is to re-establish the bus as we grew it up
to this point, keeping it at a status quo, and that will require some money. And then the future
growth of the bus potentially in the energy sustainability plan, which will be back in a form of a
resolution in a couple weeks, so I just wanted to share that with you.
Mr. Sullivan: I appreciate that, thank you.
Mr. Kaneshiro: Go ahead Mr. Bynum.
Mr. Bynum: Good morning Ben. Good morning. You know, I know you`re
on the bus advisory committee, and I've seen the proposals for potential expansion of the service, and
I know a very high priority for myself is Sunday and evening services, because we have a dependent
group...we have a group of people dependent on the bus who can't...basically are homebound on
Sundays because they can't get out, and they might working lower-income people who...that's the
day they have and they're stuck. So that's a high priority for me, and I just wondered if that's also a
high priority for the bus advisory group.
Mr. Sullivan: You know, I don't believe the group has gone through the
process of ranking those items for service expansion, but we would be happy to put that on our
agenda and then send that forward. Clearly there's been a lot of interest expressed in that, as well
as the extension of into evenings that the bus stopping at 7 p.m. in most cases or thereabout is
problematic for a lot of people who work in hotels and service business and other areas, or somebody
that just wants to go to a movie and doesn't want to take their car, you know. So extending the bus
out to 10 or maybe even 11 p.m. based on what the data shows and what the community response
and support is, I think is a very smart idea.
Mr. Bynum: We're in a difficult budget time, and so you know...but I agree
with that that, you know, people can get to the evening event, but they can't get home. But Sundays
also is like you're really stuck. So thank you for that testimony.
Mr. Sullivan: And just really briefly, in responding to Councilman Furfaro's
statement about the gas tax, in January the...I believe it was January, we...as committee, the
transit advisory committee, did respond to that 50 cent gas tax proposal, and our response and
agreement as a committee was that it should not be near that much, and I think you're reflecting
that in your statement, but also that the money should be directed vigorously towards the Kaua`i
Bus, and for the reason that, you know, you're not...you're moving away from this notion of a
regressive tax, you know. Previously it was to fund electric vehicles, so you're taking money from
people who potentially don't have it and giving it to people that can afford a new vehicle. The idea of
a little bit of tax to fund something that allows people who can't afford that tax an alternative is
really a smart way to go. So I'll close with that. Thank you very much for your questions and for
the opportunity.
Mr. Furfaro: And you summarized that very well. I want to make it clear,
it is...we're talking about a 6 cent cap(sic), and we're talking about earmarked for the growth of
the bus.
Mr. Sullivan: Thank you.
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Mr. Kaneshiro: Thank you. With that, our next speaker please.
ELLEN CHING: Good morning. Chair Asing and members of the council, my
name is Ellen Ching. We are a member of the transit advisory committee, and for the past 26...27
years, I've worked in the field of developmental disabilities, currently as the Kaua`i home and
community base services program manager for Easter Seals Hawai`i. I'm going to present written
testimony, so I'm just going to paraphrase to make it briefer. Easter Seals Hawai`i was formed
in 1946. We're one of the oldest and largest private nonprofit providers of services to children,
infants, and adults with developmental disabilities, and to this end, last year Kaua`i operations
served over 360 children and adults. I'm writing or presenting this testimony in strong support of
funding to maintain the county's paratransit services. Currently we contract with the county to
provide paratransit services to 50 children and their families, as well as adults with developmental
disabilities. The proposed furlough will create a negative domino effect in the following manner.
Individuals with development disabilities from Kekaha to Anahola will be impacted by the loss of
service. Parents that depend on our services in order to place...in order to care for their son or
daughter and to maintain their employment will be impacted. Easter Seals Hawai`i staff will be
impacted by loss of work, and certainly, our organization will be impacted by the loss of staff
and services.
During your deliberations, I ask you to consider the following. The service that will be
affected the most, adult day health program, is the most cost effective, and it's the only service of its
kind of Kaua`i. Secondly, last year due to State budget cuts, services for individuals were reduced by
a minimum of 15 percent already, and an additional contract for services for over a hundred
thousand dollars a year was terminated. Individuals with developmental disabilities have done their
share to tighten the belt to meet fiscal constraints, and now it becomes a serious and dangerous
health and safety problem. Since the State budget reductions, some families have been faced with
hard choices-between needing to work to provide for their family and needing to care for their son
or daughter. On our neighboring islands, this has ended tragically with the death of one woman due
to domestic violence, and the rape of another. I want to thank you for your public service; however, I
don't envy your positions. You're faced with some very, very hard choices. So I don't come before you
lightly. In fact, I come before you knowing full well that in order for you to preserve this service, it
may come at the expense of another. However, if the criteria to determine essential services is based
on health and safety, I have to tell you that we are dependent on p'aratransit services to meet the
health and safety needs of individuals with developmental disabilities on Kaua`i. Thank you for this
opportunity and for your consideration, and should you need more information, please contact me.
Mr. Kaneshiro: Thank you. With that, Mr. Bynum.
Mr. Bynum: Thank you very much for your testimony, and you're perhaps
the person that can best answer questions I have. Paratransit, does it work... does it run on nights
and weekends right now?
Ms. Ching: Currently, our services run 365 days a week. The service that
will be impacted the most, adult day health program, will run...it runs Monday through Friday.
Since we've learned of this, we have investigated with the, you know, county transportation the
possibility of potentially running Sunday through Thursday...what's the possibility of that. My
understanding is that's not feasible or that's not going to provide the revenue or the savings that the
county needs.
Mr. Bynum: And I guess I'm a little confused, because I'm not aware of
cuts that are proposed to paratransit services. The mayor's supplemental budget puts money back in
to eliminate furloughs for bus drivers. I think there are some furloughs of dispatchers and other
administrative people in the transportation agency proposed. But I'm not clear how that's going to
impact paratransit services. You know, I expected that we would maintain that level of service or
that was the intention.
Ms. Ching: Yes, when I wrote the original...my original testimony, it was
to the budget, not necessarily on the supplemental budget, and should the supplemental budget
pass, we'll be very grateful for that indeed.
Mr. Bynum: Great, so...and I know there's not a low of awareness because
we didn't all receive it until Friday, you know, `till Friday afternoon, but you know, unless I missed
something, and I don't think I have, the bus drivers are one of a small group that is going to be
exempt potentially from furloughs. So thank you for your testimony.
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Ms. Ching: Thank you.
Mr. Kaneshiro: Any other questions? Mr. Asing.
Council Chair Asing: I don't have a question, Ellen, but I'd like staff to please go
over to Ellen and get a copy of your testimony, and staff, make copies for all councilmember please.
Thank you.
Mr. Kaneshiro: Okay, thank for you. Anyone else in this chambers that
wanted to speak on the budget overall?
ANDREA BROWER: Good morning Councilmembers. Nice to see you all. I just
wanted to speak real briefly to the bus. In doing a lot of this outreach work that Malama Kaua`i and
Apollo Kaua`i did to different organizations to get their support to sign on to the testimony we
submitted, we came across so many diverse perspectives about how necessary the bus is, and I just
wanted to add in a couple that weren't mentioned, and one is the youth and students, and I came in
late for Ben's testimony, so I'm not sure if he spoke to the KCC issue, but with high school students
as well, there's more and more families that aren't able to afford three cars or can't, or are working
during the day and can't transport students or their children. So there's more and more young
people using these services, and I know that there was a group of high school students that wanted
to be here today to support it, but they are in school so they couldn't be here. So the young
people...and I also just wanted to make the point that the more we spend on transportation, that
eliminates the dollars going off island to pay for fossil fuels, the stronger our economy's going to be.
And so I realize this is a really challenging decision and it's a challenging year to, you know, move
money around, but in the long run this is going to benefit our economy and I think that you spoke to
the small fossil fuel tax to go straight to the bus, and we would be in support of that at a later
date. Thanks.
Mr. Kaneshiro: He has a question.
Mr. Bynum: Andrea, thank you very much for your testimony. I'm glad
you're here today, because you know, we received...you worked hard on this. You have how
many co-signers?
Ms. Brower: I think there's probably like 37 at this point, and those are
just pretty much... Every organization that we asked did sign on, and so if we had had time to do
more outreach, I'm sure there would have been many, many others.
Mr. Bynum: Well, I've been moved by the testimony because I would
characterize it as an outpouring of support in the last week or two. And the interesting thing is like
you've said, the perspective that people have, you know, very different angles, whether it's
preserving the environment. But the most moving testimony are people who are saying this is a
necessity for me, and I don't have the option of having a car because of disabilities or economics, and
so you know, I kind of want to invite you to read this list, because it's...not only did we get this
testimony from 30 different organizations, but we got... You know, in addition to that, people from
these organizations writing us and saying here's why, you know, and making really strong and
powerful arguments. So your testimony was thoughtful because it also included information from
the bus about what those options are in terms of trying to address some of these needs.
Ms. Brower: Well, and Janine's very, very helpful. So I will go ahead and
read the list so it's on the record. Wilcox Memorial Hospital, Kaua`i Community College, the Kaua`i
Chapter of the Sierra Club, Get Fit Kaua`i, Kaua`i Athletic Club, Hale Opio, the YWCA, Surfrider
Foundation, Lihu`e Business Association, Kaua`i Youth Network, which includes students from every
high school, KKCR, The Boys & Girls Club, Kaua`i Developmentally Disabled Council, Hawai`i
Center For Independent Living, Zero Waste Kaua`i, Wailua/Kapa`a Neighborhood Association, a
Thousand Friends, Kaua`i Path, The Young Democrats Of Kaua`i, Koloa Community Association,
Child Welfare Services, Vocational Rehab Services, The Friendship House, Kauaians For A Bright
Energy Future, Kaua`i Alliance For Peace And Social Justice, Philippine Cultural Dance Group,
People For The Preservation Of Kaua`i, Island Breath, and that's not all. There was another 7-the
I,31auea Neighborhood Association, The Food Bank, I know another service for blind, and... Okay.
Mr. Bynum: So I just really wanted to...because like I said, the follow-up
was, you know, a lot of...virtually all of our social service agencies saying hey, our clients are, you
know, relying on this that they can't focus. So I know a lot of my concerns as I said earlier have to do
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with the population that has no alternative. I mean there's this group who can save money and
reduce their cost in their household by leaving their car at home, but there's this other really big
group that has no car. And so thank you very much.
Ms. Brower: , Right. Yeah, and just to speak to the process, this wasn't like
something where we went around and we asked people to sign a petition or something. These were
all very thoughtful exchanges, and these groups are well aware of what we're asking for and are in
very strong support, and some of them have submitted their own testimony as well.
Mr. Bynum: Right. They had to go to their boards and get permission.
Ms. Brower: Right, yes, all of them did.
Mr. Bynum: That's why I me, I know you did a lot of work on this and had
to be in advance, because you know, an organization can't just say this, they gotta get a consensus
from their boards or their membership or whatever. So thank you.
Ms. Brower: Thank you.
Mr. Kaneshiro: Thank you. Anyone else in the chambers? This is your
opportunity to speak on the budget before I call Mr. Rezentes up. Okay, with that, Mr. Rezentes.
I'm giving you the opportunity to come up and make your presentation. Wally, you have the floor at
this time to talk about your modif'ied budget that was sent back to the council.
Mr. Rezentes: Good morning Chair and councilmembers. Wallace Rezentes
Jr., director of finance for the record. Thank you for the opportunity to provide an overview of the
administration's supplemental budget request to this body. The proposed fiscal year 11 operating
budget totals $147 million, and represents a reduction of 4.6 percent over the current f'iscal year
level. Major sources of revenues are expected to decline, and in some areas decline substantially. I
refer you to the second page of the budget message that details some of these reductions in revenue
sources. Real property taxes for one will be down significantly by 10.2 percent, or $92 million. Our
certif'ied tax roll that just came about on May 1 included resulted in real property tax revenue
• decreases of approximately $461,000. Our solid waste tipping fee revenues is anticipated to decline
by 19.8 percent, or $752,000. Our highway fund revenues are expected to decline by $900,000, or 7.5
percent. Golf fund revenues are estimated to decrease approximately 12.6 percent, or $263,000. The
majority of these funds require future ongoing and future support of the general fund. As a result
of these dismal revenue projections, we had to make some very difficult choices to reduce the budget.
Besides the numerous operational reductions, two-day furlough per month will be implemented, with
a few exceptions that relate to public health and safety and transportation, which I'll get into a little
bit later in my discussion today. Our CIP budget remains at $100.6 million, and it's for the most
part very similar to our March 15 submittal. And our message details out the changes between our
March...the substantial changes between our March submittal and our May 8 submittal. Worthy of
mention is a hundred thousand for twin reservoir drainage improvements, 421,000 for continued
implementation of our document imaging system, the moneys will be used for our planning
department, as well as our engineering division. We also included funding for complete streets safe
routes in Kawaihau for another $100,000, and matching funding request for the Wailapa/K`ilauea
stream project at $400,000.
As part of our budget submittal, we provided you on Friday a tentative furlough calendar for
our HGEA/UPW and other county employees not part of the HFFA and SHOPO collective bargaining
units. Most departments will be operating from the calendar with a few exceptions. The calendar
was developed in consideration of department of education furlough schedules, the State judiciary
furlough schedules, as well as trying to schedule one furlough day per pay period as much as
possible. Non-furlough employee groups include KPD dispatchers and public safety workers, KFD,
Kaua`i fire department, water safety off'icers and supervisors, transportation agency bus drivers, and
department of public works solid waste refuse collectors. Additional funding for these employee
groups were included in the budget to address health and safety and transportation needs of our
citizens and guests. Employee groups who will be working staggered furlough schedules include the
Kaua`i bus operation employees and support staff, our solid waste landfill workers, our solid waste
transfer station personnel, wastewater treatment plant personnel, park maintenance workers, golf
course employees, and as well as liquor inspectors.
As we look to the future, and this council continues to deliberate the current budget that is
before you, I would like you for not only...to not only consider what's before you in fiscal year 11, but
also what's potentially before us in fiscal year 12 and beyond. The first point I want to put on the
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table for your consideration is the likelihood that real property values has not bottomed out; there
are some indications in the market recently that indicate that it may be close to bottoming out, but
right now we are not certain that that is the case. Asking my staff what, if they had a crystal ball,
what would they estimate our picture to be in the next time we come in front of this body with a
certif"ied roll, and their anticipation or at best guess crystal ball is a 5 percent reduction. A 5 percent
reduction would approximate another $4.1 million in lost revenue. I also wanted to remind the
county council that our current fund balance includes a nonrecurring revenue source of $7.353
million, and this nonrecurring revenue source was a result of our refinance of our...in a recent bond
issue, a refinance of present general fund CIP cost items. This funding source will no longer be there
in the future.
We also have, as I indicated before, a number of deficit funds. These deficit funds depend
highly on the general fund as a source of revenue. Some of the funds that will need added general
fund support...or anticipate a general fund support in the future include our wastewater fund, our
golf fund, our highway fund, and our solid waste fund. We anticipate that these deficit funds could
require an additional infusion in fiscal 12 and beyond in the one to $2 million range. As an example,
the general fund support for these funds in fiscal year 11 will increase 1.5 million. So the one to two
million is a ballpark number, but something that is reasonable for your consideration.
As you know, we all have been cutting our budgets and trimming our budgets as best we can.
The result of trimming budgets and basically having tighter budgets in practically all departments
is that we will no longer carry over from one fiscal year to the next a strong fund balance. The
carryover unexpended moneys of, you know, as a result of a tighter budget will drastically decrease.
We anticipate the result of the tighter budget...it would translate to approximately a one and a half
to $2 million rollover reduction. We also are facing potential increases and substantial increases in
EUTF obligations for active employees of 26.2 percent. The EUTF board will hold a meeting on
May 19 to decide this matter. The resulting increase of that decision would range between 1 million
and $1.2 million. We believe that the county council should also take into consideration in
deliberating its budget the world economy, the effect of the fallout of the European nation situation,
and what kind of effect that will have on Hawai`i...and Kaua`i in particular. We also need to
consider the ability or inability of our residents, small businesses, and hotels to afford future tax
increases should be not make the tough decisions that are before you today. I believe...I had a
couple of discussions with Council Vice Chair Furfaro and I believe Vice Chair, you're going to have
a...some comments to make, a presentation to make, so maybe we can discuss that later. But I also
wanted to, Chair Kaneshiro, make a correction to our budget message. Upon review of our
schedules, our staffing schedules, over the weekend, we believe we are able to keep the golf course
' open all days by staggering the work schedules of all of our maintenance workers and our office
workers. So that is a correction that, you know, I wanted to make in the budget message.
In closing, I just wanted to tell you that, you know, I am very happy to work with you folks
over the next day or two, however long it takes. I know, you know, you folks were probably working
over the weekend. I know at least, you know, Mr. Bynum, Mr. Kaneshiro, Mr. Asing, Furfaro and
others have worked over the weekend. I think I got a call on Mother's Day from Mr. Bynum, so I
know he was behind the computer working hard. I also wanted to talk about our unreserved
undesignated fund balance. I think that has been something, you know, of a topic, you know, lately
on...with the council as well as the administration. And you know, it's important to look at those
historical numbers, but it is equally as important to look at what future lies ahead, you know, what
our fiscal situation will be one year, two years, and three years from now. We are actually fortunate
that we are in, you know, a strong fiscal situation. We were lucky that we were able to float the
bonds when we did and received pricing schedules the way ultimate pricing the way it turned out,
because of our fiscal strength. I hope that we can in the upcoming years retain that strength so that,
you know, our credit rating is not jeopardized. With that, you know, if you folks have any questions of ine...
Mr. Kaneshiro: Okay, thank you for that presentation, Mr. Rezentes, and I
believe what I...what I did is I didn't limit him to a time because he was presenting the overall
supplemental budget that was presented to us last Friday. And at the same time, I got to thank all
the members. I mean every one of you, I know some were gone, some were off-island, some were at
different functions, doing different things, but each and every one, you know, we've talked about the
budget, we've had discussions, and I just want to thank the members for doing that, and I believe
I've seen, you know, many back and forth discussions going on with the administration, and I really
wanted to give my mahalo to the administration for being available, being available on Saturdays,
and even answering calls on Sundays. But thank you, because this is all part of decision making.
You know, I know it's tough, we all know it's tough, but I'll go ahead and open for committee
members any questions they have with Mr. Rezentes at this time. Okay, go ahead Mr. Furfaro.
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Mr. Furfaro: Chair, I would prefer to make my presentation and then find
if there's any additional questions to direct to him.
Mr. Kaneshiro: That's fine, whatever the committee chooses. I'll take
suggestions. Mr. Bynum?
Mr. Bynum: I have a couple questions.
Mr. Kaneshiro: Okay, he has couple questions. We'll address that, and then
we'll go into your presentation.
Mr. Furfaro: That's fine. I just want to have my facts on the board...
Mr. Kaneshiro: Right, and in case we need to get Mr. Rezentes back and
so forth...
Mr. Bynum: But Mr. Rezentes is with us for the duration, yeah?
Mr. Rezentes: At least `till lunch...no, no, no.
Mr. Kaneshiro: Okay Tim. It's open up for questions, go ahead.
. Mr. Bynum: Wally, I just wanted to start by thanking you for being
available and for the hard work I know you and the administration are doing. There are many
things in your budget...in your revision that I'm very pleased with, you know the thoughtful
deliberation you did in the administration and some of the changes you made. It keeps us from
having to deal with those issues here now, and I'm very appreciative of that. And I also want to
thank you for being available on the weekend, and I want to point out that I did call you on Mother's
Day, but the phone call was like two minutes, right? Was really quick. The longer one we had was
on Saturday before that, so... But I really appreciate you being available, you know, during the
weekend. So...and you anticipated my first question about the golf course closure. I'm glad that's off
the table. I didn't understand that one, so I'm glad you were able to work that out. But I'm also, and
this is maybe my only question for now, the pool, the pool, are we going to keep the pool open on
furlough days? Are we going to stagger that schedule, because you know, the golf course and pool
are the recreational amenities I think that we staff that I hope are available for the community when
State, county workers and hopefully not teachers, but others are on furlough. Do you know the
answer to that?
Mr. Rezentes: I don't know the specific answer. It may change. The
working hours may change, but I can't speak to it, I apologize.
Mr. Bynum: So like community centers and the...for the senior programs,
are they going to be open and available on all the traditional days that seniors are there?
Mr. Rezentes: I believe for the most part those are intact, yes.
Mr. Bynum: So I'm sure I'll have other questions later, but... Well, maybe
one other. I'm sorry.
Mr. Kaneshiro: No, go ahead Tim.
Mr. Bynum: You know, I appreciate... I agree with everything that you
said about having a conservative approach to county finances, and I believe that that has been the
take of this administration and the previous one, and virtually unanimous support from the council. ~
And I think that that's very important and we will have some discussion about fund balances today. I
And because we keep those fund balances to deal with difficult situations, and for many other '
reasons, and so would it be fair to say that one of the reasons Kaua`i is the only county not proposing
any changes in the tax rates is because we have been conservative and we have some resources to
draw on that other counties may not have?
Mr. Rezentes: I know the situation with the other counties is basically all of
them are, except Maui, are following through on a... going through a two-day furlough plan. I do
have some historic information on where they stand fiscally as of their last comprehensive annual
financial report. And you would look at that, as well as their recent credit ratings, and a lot of them
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are actually in a similar boat that we are fiscally. Some have a little bit... actually the county of
Hawai`i has a good size fund balance, and that was the result of, I believe, sales of some real estate.
So that again is a non-recurring...
Mr. Bynum: I'm sorry, which county?
Mr. Rezentes: Hawai`i county. They sold some land to help them increase
their fund balance to where it was at as of June 30 o-nine, and that was the most recent information
that I received from them. But yeah, I think you'll see other counties have a decent amount of fund
balance, but it ranges.
Mr. Bynum: But my question was, we are the only you're not proposing
any tax rate increases this year, is that correct?
Mr. Rezentes: No. We are...we proposed I think two revenue enhancement
measures related to driver's licensing and motor vehicles.
Mr. Bynum: Right, but no tax rate increases.
Mr. Rezentes: No tax rates.
Mr. Bynum: All of the other counties are proposing tax rate increases,
correct?
Mr. Rezentes: I believe they are proposing increases in rates, but I'm not
sure if it's increasing taxes over the current fiscal year levels. I'm not sure. I'm not certain.
Mr. Bynum: I'm going to do a presentation about that later, but right, as
you correctly pointed out, when assessments go down, rate increases don't necessarily mean
additional tax burden or tax bill. But you know, so I know the Big Island for instance is looking at
increasing rates in several categories, but having that be revenue neutral. But in your situation, you
just testified that we have a decrease in revenue that we're not seeking to make up with tax rate
increases, right? And I think that's a good thing. That's a very good thing. And you know, I think
that's...as a result, we're able to do that as a result of being fiscally conservative over the last
number of years. So thank you very much.
Mr. Kaneshiro: Any other questions for Wally? Go ahead Councilmember
Kawahara.
Ms. Kawahara: Thank you. Good morning Wally. Thank you for the rundown
on expected revenue or expected decreases in the general fund. I think I've added it up to 8.39
million. Does it sound right? We're talking about nonrecurring for the bond, a deficit and no
carryover in the EUTF, the four items. Is that what you're talking about?
Mr. Rezentes: You're just talking about expenses, but...or decreases in
revenue?
Ms. Kawahara: Yeah, upcoming decreases in revenue that you're expecting.
Mr. Rezentes: Four point one property taxes, 7.35 in nonrecurring source of
funds as a result of our refinance of our bond issue, so that's what--eleven four...eleven five already.
One to two million to fund our deficit funds, tighter budgets which would...
Ms. Kawahara: No carryover...
Mr. Rezentes: ...equate to lesser carryover of one and a half to two million,
the potential EUTF increases of one to one point two million... I think that's the highlights that I
gave you.
Ms. Kawahara: I missed the first one. Okay. So right now though, when do
you think is the time to use the general fund? At what point is it become something that's
unanticipated economic downturns or emergency...
Mr. Rezentes: We are using.it already. We are using it.
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Ms. Kawahara: And what percentage are we using it at?
Mr. Rezentes: We are using I think 15.4 million. In the current fiscal year
at this time, we started at 9 million, so we are eating into our fund balance, I believe to the tune of
close...off the top of my head another 5 million.
Ms. Kawahara: Fifteen point four total.
Mr. Rezentes: Fifteen point four is what we're...we've included in this
budget submittal, yes.
Ms. Kawahara: Okay, thank you.
Mr. Kaneshiro: Any other questions for Mr. Rezentes at this time? If not,
thank you very much Wally. No, he's going to stand by. And then I'm going to call the meeting back
to order, and as for procedure process, call the meeting back to order. This would give Mr. Furfaro
the opportunity, this would also give Mr. Bynum the opportunity, and any other councilmembers the
opportunity to have some discussion on the budget, because we're like in a decision making process.
Mr. Rezentes: I'm sorry, actually I wanted to hand out a few slides of pages
of some historic information that I think were in part requested by Councilmembers.
Mr. Kaneshiro: Okay, so you have a handout for us, Wally? That's not
a problem.
Mr. Bynum: Wally, does that handout include the stagger list that
you read?
Mr. Rezentes: No, I think you're...
Ms. Kawahara: Stagger is in here.
Mr. Rezentes: It's in there. It's also included in I think other information,
but I can provide you more details if you want.
Mr. Bynum: It's in the budget message?
Mr. Rezentes: Yeah, but I think there was something else that was provided.
I can give you more information on that specifically.
Mr. Bynum: I see the list for furlough exemptions, but I didn't... You read
a list of categories where the...rather than take the scheduled days, there's going to be staggering.
Mr. Kaneshiro: Page 4 of the budget. Okay, we have that handed out.
Mr. Rezentes: The first page is a synopsis of our unreserved/undesignated
fund balance. As you can see, what we did was take the unassigned reserve of 32.844 million as of
June 30 o-nine, included the appropriation for the current fiscal year budget of 9 million, included
the approved budget appropriations or money bills that were included in the course of the year
of 1.446 million, and the general fund increases as a result of the bond issue, and that was the 7.353
that we discussed earlier, and an estimated revenue over expenditure of 5 million to come to 43.7
million. From this number, we're designating 15.49 million in the upcoming budget, and that leaves
us at 28 million. With that number, the ratio of unassigned fund balance to fiscal year 11 budget
is 19.2 million. Between fiscal year o-nine and fiscal year 10, we've lost approximately 4.6 million in
unassigned reserve. I included here an average appropriations between fiscal years o-seven
through 10, the average is about $3.1 million in appropriations. What that is, is in the course of the
fiscal year, after the budget is approved, we come to this body and request money bills and
appropriations for items that are unanticipated that come up. So again, that is average about 3
million. If you include that $3 million roughly into our calculation, the ratio of unassigned reserve to
our operating budget is about 16.43 percent.
The next page shows our...where we're at as far as our net taxable property values. As you
can see, the line...couple of fiscal year maxed out at 19...net taxable values maxed out at $19.3
billion. Currently we're at $16.7 billion. That represents a 2.18 billion decline, 11.5 percent decrease
between fiscal years 10 and fiscal years 11. If you look at that number relative to fiscal year o-nine,
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we've lost $2.53 billion in taxable property values, or 13.1 percent, a pretty signif'icant decline. And
again, we do not anticipate this number to be at its lowest. We believe it will likely go down in the
neighborhood of 5 percent, hopefully not any more than that.
The next page shows how our operating budget has grown since o-four to its highest point in
o-eight...fiscal year ending o-eight, and now back down to the 147, which is our proposed budget for
the upcoming fiscal year. What's important to note here is that while property values have gone
down 13.1 percent over the last two years, our county budget was reduced by 6.9 percent over the
same period. So we've...basically it's a reflection of...the likely cause of that is having to eat into our
reserves to balance the budget.
The next page is the trend of our general fund fund balance through the fiscal years started
at 10.4 in o-four, hit its height of 352 in...at June 30 o-eight, and anticipated to be just slightly
over 28 at June 30, twenty-ten. So again, those lines are all decreasing.
The last page is a comparison with the other counties. Some of the information that our staff
pulled from the comprehensive annual financial statements from Kaua`i county, as well as the
counties of Hawai`i, Maui, and the City & County. I think I mentioned earlier, if you look at the
CAFR June 30 o-nine for Hawai`i county, their fund balance increased substantially at June 30
o-nine, and I think that was a result primarily of sale of real estate. And you can see our line, the
last two CAFR years where our general fund reserves decreased by 2.4 million roughly at June 30
o-nine, and anticipated 4.5 million decrease at June 30 twenty-ten.
So I believe, you know, these numbers prove that it's, you know, it's evident that, you know,
we cannot expand government. We need to be frugal in the way we spend our taxpayers' dollars and
make hard choices now and into the future.
Mr. Kaneshiro: Okay with that, I'll open it up for questions by committee
members. Mr. Kawakami go ahead.
Mr. Kawakami: Thank you Mr. Chair. And in regard to the general fund
reserves, I kind of miss the point. What was county of Hawai`i's general fund reserve increase
attributed to?
Mr. Rezentes: The sale of real estate.
Mr. Kawakami: Sale of real estate, okay.
Mr. Rezentes: It's in, you know... What's important... Jay knew the
specif`ics, I didn't. And I think they're trying to sell some more, but you know, what's important to
note is that's not a recurring source of revenue, like our 7.353 million, it's not a recurring source of
revenue; it's a one-time shot in the arm that-will not be there -next...this coming year or the
year after.
Mr. Kaneshiro: Okay, any other questions for Mr. Rezentes at this time?
Okay, thank you very much Wally. Appreciate the time you spent with us and staff and also with
councilmembers. At this time I would like to call the meeting back to order, and I believe that we'll
' start with Mr. Furfaro; he has a presentation, and followed by Mr. Bynum. I believe Mr. Bynum also
has a presentation that he wanted to make. So at this time, we're in the decision making process
and we'll have...most of the discussions will be within the committee members itself. And again, if
really need be, if we really need to have Mr. Rezentes up to answer some of the questions, I'll go
ahead and call him. So after the presentations that have been made by Mr. Furfaro, Mr. Bynum,
and any other members. So at this time... Are you ready to do your presentation or you need couple
minutes? You're ready?
Mr. Furfaro: Mr. Watanabe, may I use those two items?
Mr. Kaneshiro: Okay Jay, you have the floor at this time.
Mr. Furfaro: Thank you. First I want to also thank our staff that worked
on Saturday.
Mr. Kaneshiro: Plus yesterday.
Mr. Furfaro: Plus yesterday...
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Mr. Kaneshiro: Mother's day.
Mr. Furfaro: And that's very generous of them to give up their time. I
passed out my summary to all of you, and I may have a copy of two of the first page. Yvette, if
anybody in the audience would like to get a copy of the first page of my presentation, you can just
put it up there on the podium.
First of all I want to thank Mr. Rezentes for his presentation and summary, and I've never
had great penmanship, so... and I don't have a PowerPoint, but I'd like to share this with you folks
from the audit of June of 2009. We had a beginning fund balance of $32,844,000. I think
Mr. Rezentes touched on that. We should also know...I have a little bit of a different number than
Mr. Rezentes on the general fund allocations that were made in the year for the year and still have
to be taken away from the fund balance, but this is material that was sent over on May 3 that that
the time was not exact, but it did get in the hands of the mayor and the finance people. So in the
year for the year we have a variance in the number here, but that had to be subtracted from the 32
million. We also at the time were considering an opening budget of $14,386,000 of that reserve, and
I've earmarked an undesignated reserve for next year, because I don't think we're through the tough
times, as Mr. Rezentes pointed out, to have a fund balance to start next year's operating budget. I
also have put something new on my line item here is a two percent contingency in the year for the
year, and this is basically rather than guess what we're going to be requesting of moneys in the year,
I'm saying we should have a financial policy, and maybe we can talk about in the future £inance
committee meetings, but we should reserve at least two percent of that moneys in a contingency fee
so when people come in for an emergency funding, we've earmarked some money there. Therefore,
there is one million nine set aside for that, and as Mr. Rezentes said earlier, over the last four years,
I believe, we have tapped the budget for as much as 3.1 million on average. So the two percent is
somewhat conservative.
The in the 15th of March we had a revenue adjustment that was submitted with the revised
budget of $460,000, so considering having some policies about being prepared for next year as well,
we will have $496,593 as a carryover that we could use for particular items that are not covered in
the first budget. Which brings me to the sheet that I believe many of you have in your hands. And
the first thing I would like to point out is, on the cash adjustments, and as Mr. Rezentes said, under
the benefit and health fund, we have these moneys earmarked for police and fire of 404,000, and we
have all other departments at a million four in the budget. But there is an anticipation, and if I
heard your number right, Mr. Rezentes, it was possibly as much as 26.4 percent increases, and that
is yet to be determined, but I think it would be appropriate of us to see if we couldn't have those
variances audited somehow to know exactly where we're going to be in a couple weeks should the
health and welfare funds go up. I am also suggesting that we would identify money from the general
plan and have an understanding that the general plan may be a two-year funding apparatus this
year. There's 900,000 in this budget, and I'm suggesting we start in the third quarter with
the 500,000 that we have, and budget the other 400,000 in the following year, because as a member
of past general plan committees, I know it's taken us almost a year to get through them, and with all
the other variances we have going on right now with the CZO and other projects, I would like to see
them completed before we actually start up the general plan. Then we have a potential surplus after
the funding of a two percent reserve in the year for the year, and a 15 percent county treasury
reserve. That's where the 496,000 comes from. I'm also identifying a reduction by the council and
their amenities for gasoline, cell phone, and so forth of 12,000, and I'm also taking five percent out of the budgeted overtime to then get us to $1,900,193. That is what I think we can have the additions
on, and as I mentioned to you, this went over in a discussion from me with the mayor on May 3. I'm
very pleased to see that in the supplemental budget, many of the items that I've identified here a
week ago have in fact come across, with the exception of still waiting to hear on the firefighters on
the adjustments for the health and wellness funds. I did put in cell block and dispatchers 186,000. I
added $75,000... Sorry I skipped one. I added $186,000 for the prosecuting attorney's office, who
may be losing some grants, plus the need for additional clerical support. I've put in 75,000 in the
county attorney's office for staff upgrades. I have added, and this is under the consideration that the
administration has already put in a CPA for the audit division, but I put in another 85,000 for a...in
the audit department for an analyst. I've fully staffed life safety ocean recreation; that's not having
the lifeguards on any furloughs. I've re-established the full service bus driving staff for
transportation to its current level $171,500. Wastewater with 24/7 coverage, the county clerk's office
with a special project planning, that was after a discussion as to our preparedness for the general
plan and reviewing the CZO with an outside agency. I've put in a solid waste position upgrades from
a specialist to a manager, as Mr. Harder and group had talked about, along with the fact that I think
we could put in another person in the actual project when it comes to the CIP. I then added Kaua`i
planning and action alliance $9,000, reinstated Humane Society for $32,000, and the potential
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funding for Head Start. So what I've submitted here is balanced to a degree that it was unaudited at
the time I did it on the third of May and submitted it to the mayor's office. I'm very glad to hear that
we have in this morning's message heard from the administration on restoring the golf course, as
that is a revenue center as well as a cost center. So that's a quick summary. There is more
narrative, Wally, that you folks have seen before that I turned in on May 3 as well, dealing with the
other contingency reserves, but most of what I've put in this in this May 3 address in fact I've seen in
your supplemental, and I don't think we're too far off. Where'd the chairman go? Oh Mr. Asing,
you're now the chairman.
Council Chair Asing: Yes. With that, any questions for Mr. Furfaro?
Councilmember Bynum.
Mr. Bynum: Mr. Furfaro, thank you for your presentation and your
leadership on finance issues over the years I've been on the council; it's very much appreciated. But
some of the things on your list the mayor has put back in already, right.
Mr. Furfaro: That's right.
Mr. Bynum: And so I...
Mr. Furfaro: But I want to point out, my list went over to him a week ,
ago, so...
Mr. Bynum: Right. And so I've circled in my mind some of the things that
are not in the mayor's budget, and that would be the county attorney's and the auditor's office, the
wastewater funding, the clerk special project, solid waste position upgrade, KPAA, Humane Society,
and Head Start, right. I think I got that right. And you know, I'm glad to see that some of these
priorities are ones that are...you know, I identified as well. So we'll see how this goes, but I
appreciate the presentation.
Mr. Kaneshiro: And again, you know, I wanted to thank Mr. Furfaro, because
many of us had the same concerns, you know, as you know, all other seven members also, but since
Mr. Furfaro has been working with the administration, administration has also been working with
councilmembers individually, you know, we just came up with a list as such. But I believe they
addressed a lot of the concerns that we all had originally. So with that, any other questions for
Mr. Furfaro on his presentation?
Mr. Furfaro: I just have one more statement.
Mr. Kaneshiro: Absolutely.
Mr. Furfaro: I do believe that I need to get with Mr. Watanabe, who I want
to thank for working closely with me last week, but there is a slight difference in, you know, the
general fund moneys that I had on my list based on what Mr. Rezentes finally reserved. So I might
be a bit overstated there.
Mr. Kaneshiro: And you know, for everyone else, not only committee
members, but for the public themselves too, it shows that, you know, it's an ongoing working
document that we started off with. So I want you to know that all of us had these concerns as we
worked with it through the weekend, we willcome down to a master list of some of the items that we
still need to discuss as pointed out by Mr. Bynum. So it's a work in process for us, but I'm glad that,
you know, we got it to this point now, because as you can see from the memo, I mean there was quite
a bit of concerns, not only that the committee members had, but also you know, reflective of what the
people of the island desired. Okay, with that...
Mr. Furfaro: Mr. Kaneshiro, I do have some narrative that went along with
it, because I have some conditions. I don't know if that was passed out. Jade, did you pass that out?
Okay. I would also like to see in the budget that for the departments, and these are intended as
provisos in the narrative of the budget, I would like to propose that, you know, those department
heads who had dollar funded positions, they may provide to the council some information, as long as
they have savings in their department, to initiate the hiring of those dollar positions. I would like to
also say that at the end of the final approved budget, I would like to have a budget proviso there that
makes a comprehensive assessment of where we are on the 2010/2011 furlough plans after six
months, and see if we can go back and visit the furlough plans based on some of the financial
conditions that we've experienced, because this is rather new for us, you know, and I'm also saying
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that although we have identified lifeguards and other substantial things that we need to keep,
including dispatch and jailors, we might have an oversight on something, we might be falling behind
in some of our workload. So I also have that in proviso number 2, and the one you have has three
provisos in it, and I'll let you read it at your own...
Mr. Kaneshiro: And basically, Mr. Furfaro, you touched on this already, and
the third proviso would be about, you know, about after couple months we have a...we will have a
draft policy that addresses the budgetary reserves. In fact you talked about it today.
Mr. Furfaro: Yes.
Mr. Kaneshiro: So it's just part of your presentation.
Mr. Furfaro: That's why I didn't repeat myself.
Mr. Kaneshiro: And again, committee members, as we work through the
budget, different provisos that you come up with, you know, we can look at and see what provisos
you wanted to add into as we present the budget message to the people of Kaua`i. So this is not just
limited with what Mr. Furfaro has shown here, and it's also open to any other provisos that we come
about as you bring the message to the people of Kaua`i.
Mr. Furfaro: Thank you for the time, Mr. Chair.
Mr. Kaneshiro: Alright. Any questions for Mr. Furfaro at this point? If not, I
would like to go into...
Ms. Kawahara: I have a question...
Mr. Kaneshiro: Councilmember Kawahara.
Ms. Kawahara: Councilmember Furfaro, thank you so much for laying these
all out. I appreciate it. Like Councilmember Kaneshiro says, I think they were concerns of all of us.
The proviso on number one for hiring dollar funded positions providing funds are available in the
department, I have a question...
Mr. Furfaro: It is an attempt to let department heads be a little bit more
accountable in their own department as we have several departments that have a few
departments(sic) only dollar funded. But if they are able to creatively save money and want to
uutiate that, I'm encouraging them to do so, but with a presentation to the council.
Mr. Kaneshiro: That's correct.
Ms. Kawahara: Okay. And would that be also... would they be able to hire
positions even though we're furloughing others?
Mr. Furfaro: I think the ultimate decision is to encourage them for some
independence, but also it still leaves the control with us. They have to justify why they want to, you
know, replace that position, and so we want to encourage them to have a little bit more
accountability and their own kuleana in this, but that proviso requires them to come to us.
Ms. Kawahara: Thank you.
Mr. Kaneshiro: And specif'ically for the dollar funded positions that are
included in the budget.
Mr. Furfaro: Yeah, I'm talking about dollar fund positions.
Mr. Kaneshiro: Yes, as we went through the budget process, we heard from
various departments that there were some concern that they couldn't do recruitment, they couldn't
do this, they couldn't that, but with this proviso that Mr. Furfaro, we will be probably be presenting
to the budget, would allow them to do so if there are funds sitting there in their department, so...
It's just to make it clear so they understand.
Ms. Kawahara: Thank you Councilmember Furfaro.
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Page 15
Mr. Furfaro: You're quite welcome.
Mr. Kaneshiro: Alright. With that, Mr. Bynum are you ready, or you need
couple minutes break?
Mr. Bynum: No, I do have a PowerPoint, and it will take.l0 to 15 minutes.
Mr. Kaneshiro: Ten to 15 minutes to set up. We'll take a...
Mr. Bynum: No, not to set up. I think I'm ready to go.
Mr. Kaneshiro: You're ready to go?
Mr. Bynum: No, I mean the whole thing will...
Mr. Kaneshiro: Oh okay, of course. That's fine, go ahead. I thought you
needed that time to set up.
Mr. Bynum: No, it's all set up.
Mr. Kaneshiro: Okay. Alright.
Mr. Furfaro: You have better handwriting than me.
Mr. Bynum: I have terrible handwriting, that's why I'd rather type it.
Mr. Kaneshiro: Okay with that, Mr. Bynum will make his presentation
during our decision making process.
Mr. Bynum: I want to go over some basic concepts and ideas and many of
these slides are from the administration's presentation to the bonding agencies where we were
successful this year in getting a better credit rating which reduced our borrowing cost to the benefit
of all citizens. And I said earlier that, you know, I believe this council, the previous council that I
served on, the previous administration and this administration, had a conservative approach to fiscal
matters, which our entirely island has benefitted from, and I believe that's been a pretty much
unanimous consent to be very cautious with the dollars that are spent and come from the county of
Kaua`i, and I believe that's put us in a position to weather this storm a little bit better perhaps than
others. But this first slide is about our total population, and I liked it because it talks about versus
defacto population. So the red bar is there are the human beings that are actually on the island, and
the blue bars are the residents. So the difference are basically visitors. We have a very high
percentage as a percentage of people who are present of visitors, and that's the strongest justif'ication
for the county's portion of the TAT-that visitors clearly impact our services perhaps here more than
any other island, whether it's police, fire, or roads, or you know, all of it. And so it's only logical and
appropriate that the county have a portion of the transient accommodation tax, and I believe we've
successfully made that argument over the last two years in terms of that the legislature kept the
current things intact.
I need the...no, I need the custom slideshow. There's like 60 slides in this, and I don't want
to present them all, so I have a truncated version, because I'm... But the administration, along with
our finance chair, did an excellent job of presenting the county's approach to the budget and its
financial position in terms of successfully reducing our...increasing our bond rating and reducing our
cost. So let's see... Believe me, you didn't want all 60 slides. So this just real quickly is showing
that our economy's diversif"ied. You can see the big red section of that is leisure and hospitality, or
basically hotel workers. The big white section at the bottom is trades and transportation and
utilities. And the blue section off to the right, 18 percent, is government. So State and county
workers are a big percentage of the middle class here on Kaua`i, and that was...that would be a
much higher percentage on Kaua`i than say O`ahu, which has a much larger population. This is a
real brief visitor arrivals over the last 10 years. We know we experienced a pretty big increase
in 2006, and you see that signif'icant trail off in the recent years, and that has had a very big impact
on the private sector, and you know, accounts for some of our unemployment. Visitor
accommodations on Kaua`i are diverse. On the right hand side, hotels is the red section, timeshares,
we have a very high percentage of timeshares compared to other islands, condo hotels and the blue
section there is individual vacation units; we also have a large number of those, which are basically
our TVR,s. So...and you can't see all these numbers, but we know that hotel occupancy is down and
you know, that's the breakdown.
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Here's where the story gets really interesting, and I know we've all experienced this. This is
a chart of the assessed valuation of property on Kaua`i over the last 20 years, and you can see in the
90s we pretty much had assessed values and home prices, and this isn't just homes, this is also
commercial and residential and hotel properties. But then we all experienced this huge run-up in
costs, and you see that bar going up dramatically, and then this last year coming down, and I'm sure
this year. So we're moderating some, but I don't think any of us expect, and we certainly hope, that
it doesn't go back to the way it was in the 90s, because it would be a huge loss of value. But this has
had a very big impact on the county's budget and on the situation of all of us. And so this shows that
our general fund revenue, the big blue section, is from property tax. That's the big dog, that's what
counties traditionally have as their major source of revenue. The green slice, which is very
significant, is basically TAT and governmental, and that's why it was so critical for Kaua`i that we
keep our fair share.
You know, this is where the story gets even more interesting. This is the general fund
revenues and expenditures for the last 10 years, starting in 2001. And the blue bars are the
revenue, the red bars are the expenditures, and you can see early in this decade that we were pretty
close on each one. We actually had a year in 2002 where expenditures exceeded revenues, and that
we can do that because we keep a mode...an appropriate and prudent fund balance. But as that
run-up in property values happen, you know, revenues increased, as did...and you can see that there
were years in 2006, 7, and 8 where there was a signif`icant increase in revenue above expenditures,
and that affected this chart, which. is the unreserved general fund balance from 2001 to 2009. So in
those years where our revenues exceeded expenditures, our fund balance grew considerably. Now
the last bar has to...it was under a different accounting measure, and so you got to see it as kind of
even. But you know, you can see early in the decade we were carrying a between 17 and 23 percent
fund balance. That's a very conservative fund balance, because I think a standard practice of
accounting for municipalities is that a 15 percent fund balance is a conservative and good fund
balance. Above that is even more conservative, and in tough years can go as low as 10 percent,
because in tough years you assume you're going to eat into your reserves because you're in a tough
year. But you know, our fund balance grew considerably, and I believe that's why we're in a better
position to weather the storm, why, as I said earlier, we are the only county that is not, even though
our assessed values are down and hence our property tax revenues are down, we are not suggesting,
I don't think any councilmembers are going to propose that, any increase in tax rates this year.
Now, how does our fund balance compare to the other counties? The blue bar there on the
left is Kaua`i. The fund balance in 2009 I believe, it says 2008, was 31 percent or...and Maui also
carried a pretty healthy fund balance at 27 percent, and then you look at Honolulu and Hawai`i
county which are closer to 10. Now we heard from Mr. Rezentes that Hawai`i county be in better
shape now because of a one-time infusion into their fund balance based on property sales. But you
know, they were carrying 10 percent. That gives them less flexibility to weather the storm, I believe.
So when we look at this fund balance, I think that is...been a positive thing for Kaua`i in terms of
putting us in kind of strong fiscal shape, but also in allowing us to do some things that we'll talk
about later that I know I'm personally very proud of is that we're the only county that is fully
funding our future obligations to the retirement system, and that's a very significant decision that
council made with...in collaboration with the administration and had a lot to do with us getting
better credit ratings, and more importantly, making sure that we don't have a fiscal problem that we
kick down the road for our kids as the retirees benefits come up. We're funding those in advance.
The State and the other counties are not doing that, and that helped us get better credit ratings.
But it also gives us some options. So Mr. Rezentes shared with us, and I want to talk about some
options that...and this is just to put this in big perspective for whatever we decide to do with this
budget this year.
Next year, Mr. Rezentes said that he expected our fund balance to indeed be down from what
it is that we could start next year with about 27.8 percent fund balance, that's the bar on the left,
and the rest of the bars are some what ifs. What if we fully funded one furlough day for the county
employees, so we had one furlough day, as Maui has passed their budget with one furlough day, not
two, what would be the impact on the fund balance if we did that all with fund balance, right? And
it would go down from 27 percent to 26.2 percent, or still a signif'icant fund balance. That's a
difference of $1.7 million. Now the cost for one furlough day was 2.1, we heard last time we
discussed this, but because the administration has wisely and appropriately, in my opinion,
exempted from furloughs the key personnel for public safety, the cost to eliminate that one furlough
day for the rest of the employees would be about 1.7, 1.8.
Well let's do another what if, because Mr. Furfaro has identif'ied some areas that...and I
believe there'll be some consensus on where we need to maintain some of the funding levels we had
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last year. And so the third bar would be, if you replaced on furlough day and had an additional
$750,000 of funding for key things that we're identifying are important for our community, and
that's the process we're currently engaged in, then our fund balance would still be in the 25.4 percent
range or $2625 million. That's funds...the third one is the next what if. What if we kept the fund
balance at 15%, which is recommended as a conservative fund balance? The difference between
what we currently have and 15% is about $12 million. So that $12 million is, I believe, available to
weather the storm in the future years, you know, and Mr. Rezentes has pointed out that we will
definitely have challenges in future years because of a number of factors and the fund balance is only
one lever that government can work with to address fiscal issues. But...so that's just meant for...to
look at the big picture. The last three bars are the fund balances of Maui, Honolulu and the Big
Island. So, you know, I wanted us to consider those alternatives, but we're only looking now at one
potential lever. You know what I mean by lever? Like what is it we can do to address these concerns
because other counties are doing different things. This is the...for Honolulu, they have increased
their they've created a new tax category called "non-homeowner." These are like second homes and
people who are not owner-occupants and they've increased that rate by 40...what is that...30/40
cents. Now 40 cents...when we talk about the tax rate, 40 c...a rate, let's say in this case of $3.72 is
per thousand of assessed value. So, these are the tax rates in O`ahu. Their tax rates generally are
higher than the...and in some instances very much higher than they are on Kaua`i. In addition,
Honolulu Council has increased the city's at the pump fuel tax by 3 cents this year, three cents, a
gallon from 16.5 to 19.5 cents. Just for comparison on Kaua`i, the current rate is 13 cents. So,
people on O`ahu are paying 13...6 cents more, the same 6 cents Mr. Furfaro was talking about that
perhaps later in the year we might consider for an expansion of the lius because we're currently
at 13. O`ahu also increased the minimum property tax for nonprofits and other selected homeowners
or other properties that may pay no taxes if there weren't a minimum and their minimum's going
from $100 to $300. That is going to generate $18 million for O`ahu. For comparison, Kaua`i's
minimum tax rate is currently $25, right. So, Maui County, the Mayor...the Maui County who is not
doing two days' furlough, they came right out saying we're not going to put that burden...and the
lever...one of the levers we're not going to fully pull to address our budget issues is on the employees
and the...their 2010 tax rates are on the left-hand column. The Mayor had proposed rates and the
council reduced those rates from what the mayor originally proposed. But they did have increases in
improved residential, in apartment, in industrial no, I'm sorry, industrial stayed the same,
agriculture, conservation district, hotel and resort rates went up, unimproved residential went up
considerably, homeowners rates went up 50 cents on Maui, and commercial residential went up.
And they created a new category called "commercial residential" which is basically transient
vacation rentals. They felt like transient vacation rentals are not shouldn't pay the same
residential rate and it's something that we discussed here last year but didn't make that change.
County of Hawai`i proposed tax rates have gone up in the residential, apartment, agriculture,.
conservation, and hotel and resort all had tax rate increases this year. But they've done a gra...nice
thing with their spreadsheet because as I said, if assessments go down and rates go up, it doesn't
necessarily mean a bigger tax bill. It's a way to maintain revenues as opposed to increasing
revenues, and they are taking a revenue neutral approach and basically saying let's raise the rates
so people are-paying similar tax rates and-the bottom right-hand corner shows that the net revenue
is a decrease of $45,000. You know, we heard Mr. Rezentes already say that our revenues from
property tax are down considerably and will probably be down again next year because we haven't
adjusted rates to make that different. So this is a chart that was in the Aduertiser. You can't see
these bars really good, but it shows the percent increase in the various categories of the increases
that happened on the Big Island.
The good news for Kaua`i, the proposal here today, no tax rate increase for Kaua`i. These are
our current tax rates...the chart which the administration has proposed stay the same, and I'll be
surprised if councilmembers are suggesting changing that this year. But I would like to note the
hotellresort tax rate on Kaua`i is the lowest in the state. We divide our tax rates into building and
land values and separate those, and currently our tax rate for hoteUresort is $7.90 and $6.90. Hotel
rates on Maui are $8.30. On the Big Island, they've just gone up to $9.85 and on Honolulu, they're a
whopping $12.40 per thousand of assessed valuation.
So, I just want...I'm not proposing any rate increases in this year even though our revenues
are down. But I want us to just think about the big picture as we go forward that I believe we may
get into a situation where we need to look at tax rates which we know is the big revenue (inaudible)
on Kaua`i. So, this is the Kaua`i Hotel Resort property assessed value is $2,044,000,000. So if you
took all the resort properties, their assessed value is over $2 billion. And on Kaua`i, with our current
tax rates of $8.9...$6.90 and $7.90, that...of that $100 million in revenue that we're taking this year,
fifteen million three...eight hundred and thirty-eight comes from comes from hotel properties. The
other bars here is what if that hotel was on Maui. The same property value at their rates would
generate over an additional million dollars in revenue. What if that property was in the Big Island,
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right, with their tax rates? That...on the Big Island that assessed value would generate $20 million
or a full $5 million more than they are on Kaua`i. What if they were on O`ahu? On O`ahu, it would
be $24 million or $10 or $12 million above. So I hope people understand this. I'm not suggesting
that we're going to raise these rates. I'm happy that Kaua`i has a very competitive business climate
that allows peo...businesses to be successful, that we have kept our tax rates low. But if push comes
to shove, we...there is some room, in my belief, to generate additional revenue in this and other
tax categories.
This is, again, from the administration's presentation that our cash fund balances are strong
between $125 and $150 million. That's because a lot of commitments that we've made for CIP
projects, we haven't actually spent the money, right? So, we have a pretty strong fund balance.
Also, as the administration spoke with the...they anticipated some of the savings and I believe that
Kaua`i...that the administration has moved aggressively to cut expenses of government and with
support from the council, we've dollar-funded numerous positions and they're estimating that saved
us $2.2 million. I believe a very efficient way to cut government is to cut payroll when you can and
we've done that without layoffs. We've done that by taking vacant positions and not filling them. In
addition to that, the administration's restriction on filling vacant positions has saved us a lot of
money. So we have in our budget dollar-funded positions and this year short-funded positions, and
also positions that are fully funded but are vacant. You know, so this chart was looking at some of
the things. The foregoing approved pay increases for department heads to save $200,000; reduction
in take-home vehicles have saved $50,000; increase...so these are some of the things the
administration has already done to reduce cost by signif'icantly reducing our workforce. Near term
challenges, they said, were...that our assessments are down. That assessed valuations are expected
to decline for the next fiscal year, but are expected to stabilize some time in 2011. You know,
the another near term challenge is the state's financial position because we all know, it's very
famous, that the state said, hey, we're hurting and we're going to take your TAT funds. I think we
made the appropriate argument that that would be irresponsible and they didn't and I hope that
they continue to act responsibly and recognize that the county has a legitimate claim on
that revenue.
But measures that the administration considered was possible two days of furloughs, one
that they've chosen to go with; short-funding of vacant positions, which they've done and
saved $1.2 million; replacing a portion of the CIP with bond funding, which they've done and Mr.
Rezentes has said is a one-time mechanism that affects this year's budget; and so this is a list of
possible things that we could do. One of that list it says what's the impact of a 25-cent across-the-
board increase in property tax rates? Because as we've seen all the other counties have gone to that
mechanism and a 25-cent...so what does that mean? If you...you can do the math at home. We have
a$40,000 exemption from the first $40,000 is not taxed at all, but if your home was worth $500,000
and you had a 25-cent increase in your tax rate, that's 25 cents times $460,000, which is what?
Somebody do the math. A hundred...
Mr. Furfaro: A hundred and four. It's a...
Mr. Bynum: A hundred and twenty dollars. So one way to make up $2.2
million would be to do that and we're not doing that. We're not proposing that, but it's something
that we certainly need to do and consider in the future.
I mentioned this earlier, I think that we should all be very proud of the responsibility that
we've shown in fully funding our future retirement obligations. Right now, our current year of, you
know, what we have responsible for our retirees is basically $5.16 million in this year. In addition
to that, for the last two years and this year's budget, the county has put in roughly $11 million into
account to make sure that we meet our obligations in the future and don't create a fiscal time bomb
for some future council and for future citizens of Kaua`i. That's a very significant thing and I'm very
glad that we've done that and it's paid dividends for the county, but we continue to do that even in
these difficult times. This is the summary that the administration gave the bond rating people that
we have a commitment to economic growth and diversif'ication, that a resilient visitor industry is
rebounding-that's a little optimistic-but we are seeing signs that the loss of visitors is
ameliorating and we've had some increases and we have some reason to be optimistic. We have
continued construction activity even though it's down considerably, we still have significant projects
going forward. We have a stabilized assessed valuation base, local real estate market appears to be
improving, and what I've said all along, we've had a strong conservative fiscal management policy
with extremely strong, unreserved fund balances, demonstrated expenditures control and a
willingness to increase revenues and reduce costs if necessary, the OPED or fully funding those
benefits. It comes back to this that we've kept a signif'icant fund balance greater than the other
counties. You see that that's the approach Maui and Kaua`i have taken and I believe that's why
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Maui can go one furlough day, maintain the level of social service funding than they do, which by the
way is much greater than ours, and the other counties are having to look deeper into taxes and other
benefits because they haven't cut their fund balance. The purpose of this all and, you know, for all
of the things that we'll discuss during this budget cycle is I believe that we should not have two
furlough days. We should have one furlough day. It will ameliorate the stress and, you know,
there's a lot of levers we can pull to address this. I just said that a 25-cent increase would be $120
for a typical homeowner over the course of a year. But furloughs for our employees will be much
more than that every month, right? And so I don't believe that a decision to furlough two days a
month is necessary. I think one is sufficient. That's the conclusion Maui has come to. It would cost
us $1.7 or $1.8 million to eliminate furloughs that one furlough day and...put much less strain on
county services, make it much less difficult to manage those furloughs for the ones that have to
stagger and cover to keep our level of services. I believe the decision to furlough was a political one,
not a fiscal one because we're being threatened. I'll just say it as bluntly as I can. The legislature is
saying we're going to do what I believe is irresponsible and take this money from you and to, you
know, respond to that talk, we're saying okay, we'll furlough two days. I don't believe it's necessary.
I'm going to propose and really hope that there is energy to put the $1.7 million back into our budget
from our fund balance that will leave us still with a very conservative fund balance and be prepared
for next year. This is the area...I...I really appreciate the administration's response...their approach
to the budget and the work that they did, and responding to concerns from the community and
citizens about particularly the impact of public safety and there are many good things in their
budget revision that make it much easier for us to come to a conclusion. But I hope that there's
consideration for not putting a huge burden.
The other...and my last point...furloughs are a particularly inefficient way for counties to
save money. We've seen studies and training that we don't save a dollar for every dollar. We save
much less than that because of other unintended consequences. A much more efficient way is a lever
that we have used, which is to reduce the workforce through attrition by not filling vacant positions
and we've used that to a good extent. Furloughs don't just impact our employees, however, and the
delivery of county services, they impact the private sector. We saw from a previous slide that the
state and county workers on Kaua`i make up a significant portion of the middle class on Kaua`i. If I
re...if your pay gets reduced by $200 or $400 take home in a month, you know, your rent doesn't go
down. Your electric bill doesn't go down. The price you pay for gasoline, I feel pretty confident, is
going to go up. And so, where you cut that spending is you don't go out to eat as often, you don't buy
clothes and other things that you can lay off, and that impacts our private sector very significantly. I
don't believe it's necessary to hit our employees and the private sector. I believe we'll see a new
round of our favorite restaurants closing and small businesses that are really counting on local
people right now to stay alive. So, I hope that there will be consideration for going to one furlough
day as Maui has chosen to do because I believe we can. Thank you very much.
Mr. Kaneshiro: Thank you with that, Mr. Bynum. At this time I want to take
a 10-minute break. I think we've been in here for almost two hours, so we'll take a 10-minute break
and come back for questions. and open it up for questions by committee members to Mr. Bynum.
There being no objection, the meeting was recessed at 11:25 a.m.
The meeting was called back to order at 11:55 a.m., and proceeded as follows:
Mr. Kaneshiro: Budget Session is now called back to order. At this time I'll
open questions from my committee members to Mr. Bynum on Mr. Bynum's presentation. Thank
you for that Mr. Bynum, for your presentation. And now it's open for committee members. Mr.
Furfaro.
Mr. Furfaro: Yes, thank you, and Tim, I want to thank you for your
presentation. I do think that there are some variables that, you know, we kind of need to caution
ourselves when we compare Kaua`i with Maui and so forth. You know, for example, right now eight
hotels in the state are in some form of receivership, unfortunately four of them are here. You know,
I recently went back to work after 37 years in the hotel business for one of the financial institutions
that, you know, funded a hotel repositioning and they actually changed brands and with the brand
change, you know, they dropped their average rate almost $25. And you know, when we say to them,
well, we're just going to bump the rate so that you can remain revenue neutral, the reality is they're
just remaining tax neutral, not revenue neutral, because as they lose their average daily rate, they
have a tendency to adjust through reducing jobs and hopefully, you know, reducing benefits. Our
hotels, although I've not been an active hotelman for almost five years now, our hotels do generate
the core benefits, not just for the individual employees, but they have one of the best benefit
packages for the entire family. And you know, when we talk about Maui, we have to remember they
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get about $18 million; in our heyday we get about $14 million on the TAT tax. But if we lose it, we
lose about 9.2% of our other income. Maui loses about 4.8% because they do, you know, well over
$315 million in operating budget as well as CIP and so forth. And we have hotels that are closed
through the state right now, you know. The Renaissance is, you know, one of those. We
unfortunately see a lot of reposition and a lot of reductions in operations across the state, which
really equate to potentially, you know, the loss of jobs. We have the larger share of the interval
ownership units, but as you see, as the economy has failed on the mainland, you know, I know some
properties just because of my long-term relationships with some of the owners and/or management
companies that, you know, they're down about 15% of their fixed income assessments on property
repairs, upgrades and so forth. And I think we're just, in this year, kind of catching our breath
industry-wide and I would caution us about doing anything with their taxes right at this
particular time.
I would like to kind of just make a couple more points. We also, looking at your tax
presentation, you know, I would like to say when you go right across the board on those increases,
whether it's 10 cents or so forth, I think we have to also remember, you know, we have a 2% cap on
homeowners and those homeowners right now are enjoying about $6.9 million worth of deferred, you
might say, property taxes right now until such time someone, you know, thinks we need to take the
cap off and I particularly think in these hardships and those are primary residences, it's a good time
to have the cap on. But, you know, the math doesn't quite equate...you know, equally, you know,
that way. And then of course on some of the funding pieces, I think we need to recu...make sure we
realize that, you know, we're subject to, you know, GASB's recommendations and guidance by law
now. And a lot of times when we earmark money to start our operating for the next year, you know,
those things are in compliance with GASB and I think there's going to be, you kndw, kind of
more...more issues to that effect. For example, you know starting this year, I think it was 15.4 we
start this year's operating budget and those are all related to the appropriate accounting principles
of GASB. So, you know, I just wanted to share that. You know, maybe in a year from now if we
continue on this recovery, you know, that could be good news for us when we look at our hotels and
the number of people they employ. But also, I just want to point out that we've had a lot of people
who have found themselves getting into a foreclosure situation and people have to make choices
today. I would prefer we just look at being real sensitive about keeping those property taxes in place
and look very sensibly at the sense of jobs, jobs in our hotels and as they don't reinvest in their
property and so forth, long-term, it's only going to depreciate to a point that they're going to actually
have to negotiate downwards their average daily rate. So, there's a lot of variables there and I think
it's hard to compare. We...we have only two 5-star hotels on Kaua`i. You know, Maui has half a
dozen. They make up a lot of these things through, you know, keeping the average daily rate up
high. Kaua`i also has one of the lowest daily average rates and the highest portion of interval
ownership in the state. And so that makes us a little different just in some of those comparisons. I
just wanted to share that. Thank you.
Mr. Kaneshiro: Yeah, no, go ahead because, you know, we want to have some
discussion at this point on your presentation, but as we go through we will have more discussion
because we're going to have to vote on these items...
Mr. Bynum: Right.
Mr. Kaneshiro: ...as we go through. Currently I'll open it up for some
discussions on the presentation and we can...
Mr. Furfaro: I...I...I...
Mr. Kaneshiro: No, that's good. Any members...
Mr. Furfaro: I just wanted to point out, you know, our hotels are just kind
of at the glimmer of some hope here.
Mr. Kaneshiro: And any members that wanted to, you know, get into the
discussion or have some comments they wanted to make, that's fine. We can do that now and then
at the end, we're still going to have to take a vote on all the items. You know what I'm saying?
Yes.
Mr. Kaneshiro: And then at that time, like I said, we're going to be in...we're
in deliberation and discussion period. So, Tim.
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Mr. Bynum: Yeah, may I respond to Mr. Furfaro?
Mr. Kaneshiro: Yeah, okay.
Mr. Bynum: I'm aware and I hope that I was clear that I'm not proposing
any increase in the hotel rate or any tax rates, you know, that what I was saying is we may need to
go there at some point in the future because this year and because the facts on the ground is our
combined hotel rate $7.40, Maui's at $8.30, the Big Island's at $9.85, and the both of them are
proposing increases, you know, with all those same factors. So I'm not proposing any increase in the
hotel rate or any rate, but I did want to point out that, you know, the other counties did. That's the
place...one of the places they went to deal with the current economic situation. You know, it wasn't
just hotels they increased taxes. They did for homeowners, for...and you know, I don't think O`ahu
could do that because their rate is exorbitant at $12.40, almost approaching twice what ours is. So I
meant to just say, you know, that that is a room to go there if worst case scenarios come in the future
and yeah, so I'm not proposing any tax rate. I think that is good for Kaua`i and I said in the
presentation I'm glad that we have a rich pro...you know, environment for the business sector here
and that we've kept those rates low and I think that's been through the prudence of your leadership
when you were the Finance Chair along with the administration, and majority of the council.
The main point I wanted to make is that I...you know, we're dealing with a difficult time. I
think the burden has fallen too great on our employees, you know. I'm not proposing any property
tax increase for homeowners, but if we were to do that, $120 for every household is more palatable
than $200 or $300 every month from one employee group of 900 employees that we have roughly. I
don't think that it's necessary to do two days, that's the point I wanted to make. But I'm not saying
we should do any of those other things.
Mr. Furfaro: Well I...I just wanted to share again that I think just as
they're starting to make a recovery, there was one point, though, I do want to point out that, you
know, once we do find our TVR,s sorted out, we do have some opportunities to create a tax rate for
those commercial vacation rentals.
Mr. Bynum: Absolutely.
Mr. Furfaro: And I want to make sure you understand. It's not off the
radar, we just haven't gotten to a point that we have clear understanding of which properties those
are. But I think shortly behind that a tax increase would follow..
Mr. Bynum: And I would add the same for certain categories of timeshare.
We have a unique situation on Kaua`i where timeshare assessment...assessed rates are frozen at a
point in time and that has caused some significant inequities and I know you know that already and
it's just complicated of how to address it.
Mr. Furfaro: If I could just add one more...you know, that does concern me
as well as the Garden Island has reported some of those specif'ic challenges at the Embassy in Po`ipu,
where now their monthly assessments for repair, maintenance, insurance and taxes, you know, is
upwards of a$1,000 and those individuals are, you know, almost delinquent on those payments
which will fall on the association which will then defer, you know, any upgrades to their facility and
timing, as we just recover right now, is, you know, we might be too early in visiting your vision, so.
Mr. Bynum: Well, again, I'm not proposing that. I'm just saying let's put
this in the hopper for the future.
Mr. Kaneshiro: Okay. Any other...
Mr. Furfaro: Thank you, Mr. Chair.
Mr. Kaneshiro: ...questions on the presentation or comments on Mr. Bynum's
presentation? Mr. Kawakami. .
Mr. Kawakami: Thank you. No, and thank you for the presentation. You
know I was kind of contemplating some other alternatives. I know you had a slide on Kaua`i
Alternatives, the impact of going to one-day furlough or one-day furlough with seven hundred fifty
thousand and it made me kind of realize what's the impact if we do one furlough, we lose TAT and
then property tax revenue further decreases. . Well I think that would put us at that $15 million
mark if we were to...without the property tax revenue decrease if you just go one-day furlough, right,
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and you lose TAT. That would put you about at $15 million. And I guess if you subscribe to the
belief that $15.5 million or $15 million or 15% of a reserve is enough to cover potential natural
disasters, economic disasters, world financial disasters, then fine. The proposal would make sense,
but for me, we're in an economic situation that I guess unless you went through the Great
Depression, you haven't seen anything quite like it, and you know, people are forecasting that we
should be stabilizing or recovering, but in my opinion, there's no clear economic indicators that we've
hit rock bottom and we're on the road to recovery as of yet. So, these are all things to keep in mind.
We're faced with tough decisions, but you know again, if we make tough decisions that save us from
cutting jobs completely or cutting programs in the near future, which by the way the private sector
has had to already do, or prevents us from going to a three-day furlough and prevents us from
shifting the burden to our residents and businesses, which we referenced Maui...Maui, yeah, they
went to a one-day furlough, but they're shifting the burden to the private sector and to the residents,
then fine. I'm not proposing that. I would say that we make the tough decisions we have to make
today to avoid all of those scenarios. If we can make decisions that will prevent us from doing any of
those, I would say that we've been diligent in our decision making. I know it's not going to be
popular decisions, but for the betterment of the majority I think, you know, that's where we
are today.
Another thing that concerns me is I don't know where we're getting the info that the state
legislature is threatening us to furlough to two days. I've never had any of that discussion with them
and I'm the one up there lobbying. The discussion we've had last year and this year is that hey,
Derek, we want to help the counties. The state is faced with some en...very difficult decisions to
make also. What are you guys doing to be prepared if we cannot help you in the future, but the
discussion has always been, you know, times are tough and we going help you this year, yeah, but we
cannot guarantee you help next year. There's no guarantees. And the straight fact of the matter is
the original proposal was not a TAT take away for one year, it was for five years. So if they do take
away for five years, how do you account for any of the potential shortfalls for five years? The rest of
the world, the nation, the state could be recovering but it effectively puts us in, you know, a different
scenario from everybody else. So these are all facts that we have to like take into consideration and
they're just concerns.
You know I know there's confusion about you proposing a tax increase. I can tell you why
we're confused. I'm looking at a sheet and it says property tax proposal for hotel and resort class and
it shows a dollar tax rate increase. So if there's confusion, it's because, you know, it's on paper. But
I'm glad you clarif`ied that you're not looking at a tax increase because almost feels li_ke we're being
vultures that as soon as there's any kind of sign of economic recovery, we're going to be imposing
another tax increase on the private sector. So, I'm glad you clarif'ied, yeah, any misconfusion (sic) or
confusion that I may have had on a property tax increase because, quite frankly, I'm looking at one
on paper that was proposed by you. So that being said, no other comments.
Mr. Kaneshiro: Go ahead, Mr. Bynum.
Mr. Bynum: I appreciate the dialogue and I just got to clarify that last
statement. I looked at a lot of what-if scenarios. What if, you know, when that...when I asked so
that was like what would be the revenue impact if we did a one-dollar increase, right? And if the
TAT would have been taken, I think we'd all be going there, so that wasn't a proposal. It was in
inquiry, right. If it was a proposal, I'd put it out here as a proposal.
Mr. Kawakami: In my defense, it says Property Tax Proposal for Hotel and
Resort Class.
Mr. Bynum: Well I didn't put the word proposal in there. If it was a
proposal I'd lay it out as a proposal. I assume everybody did a lot of planning for how we'd react to
tlie situations that come before us and as I pointed out, every other county did go to tax rate
increases this year to address their fiscal situation. So, yeah, that was a bunch of what-if scenarios,
so I understood what the parameters were. But if...if I have a proposal, I'll be very clear about it and
make it.
Mr. Kaneshiro: Go ahead, Jay.
Mr. Furfaro: Thank you, thank you, thank you, Mr. Bynum for clarifying
that because I too was thinking in terms of the economic recovery we have right now, but I also want
to say that earlier when I made my preseritation, I wanted to say that, you know, I'd like to see us
with a general fund reserve policy as I talked about that, you know, the undesignated fund balance
as being reflected now is approximately 15% with the fact that it is good financial planning for us
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also to have on that radar screen that 2% contingency so that, you know, that total is now 17%. But
with that 2% contingency, it's money we know we've set there should the administration come to us
with some un...some un...some mandated unfunded exercise we had to do, you know, for the state,
for the feds that, you know, we had this budgeted amount over there as a contingency in the year for
the year so that when we have an emergency we've got that sitting there. And then from the
previous year, it can be rolled in. And that's one of the reasons I'm asking in that proviso if we can
go back and, you know, look at things in December again, six months after the budget goes, so.
Thank you, Mr. Chair.
Mr. Kaneshiro: Okay. Councilmember Kawahara.
Ms. Kawahara: ~Thank you. I'm enjoying this dialogue and I wanted to thank
Councilmember Bynum for putting up some information that I wouldn't necessarily have thought of
and I know it took a lot of time to do that. I appreciate it because I do like looking at different
options and seeing what type of levers, as you called them, there are to address places where we're
going to be in financial difficulty but also what the standard is in a general fund kind of level is a
standard and then what our level is at currently, and then relate it to different scenarios of if we did
this with one furlough day, if we did this with one furlough day plus $750,000 for other stuff. I
thought that was very, very helpful, and I appreciate the discussion that we had with Mr. Rezentes
because it also put into perspective what future encumbrances might be coming up and what may
have just been single, one-time occurrences in the general fund.
Mr. Furfaro: I hope my piece helped you as well.
Ms. Kawahara: Yes.
Mr. Furfaro: Even though the handwriting wasn't so good.
Ms. Kawahara: And I thanked you, I think, off the floor.
Mr. Furfaro: I misspelled proviso (inaudible).
Mr. Kaneshiro: I can't even pronounce it.
Ms. Kawahara: But I think I...I wanted to show my appreciation for the
councilmembers that have been...that have done this before for taking the lead and providing me,
actually, with a template of how to actually go through a next one because it's really helpful to be
able to see what ideally a budget process that we're going through right now would look like and
what would be submitted and what we would be discussing. So I am interested in what
Councilmember Bynum has looked at and I'm just going to be sitting here and thinking about it as
we discuss more. Thank you.
Mr. Kaneshiro: Okay, all right. Any other questions or comments regarding
Mr. Bynum's presentation, just with the presentation itself that was presented here because we
still ...you know, we're going to have questions on...as we go and as we start voting and so forth and
we're moving down the items. So, Mr. Asing.
Chair Asing: (Cleared his throat) excuse me, I'm going to reserve my
comments on Councilmember Bynum's presentation at this time and will be discussing it at a
later point.
Mr. Kaneshiro: Okay, yeah, we'll be discussing this, yeah.
Chair Asing: Thank you.
Mr. Kaneshiro: All right, so with that, what I want to do is I want to move on
and at this point first of all, committee members, what we need to do at this point is...
Chair Asing: Councilmember...
Mr. Kaneshiro: No, yeah, wait, I still sorry about that. I'm jumping ahead
of myself. There are other members here and I'm sorry, committee members, that I will give the
opportunity to be able to do anything they want to in regards to the budget. That's correct. I made
the mistake, honestly. So anybody else that wants to do another presentation? I know.Mr. Bynum
did a presentation, Mr. Furfaro did a presentation, anyone else that had something they wanted to
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present? If not, you know, we'll just going back and start working the budget. So anybody else has
anything like that at this point?
Chair Asing: I have.
Mr. Kaneshiro: Mr. Asing, okay.
Chair Asing: Yes, let me... (cleared his throat). I too would like to make
some short comments. The first thing I want to do is say that in reference to Councilmember
Bynum's information and presentation, I thought it was good, excellent as a matter of fact and I
want to tell you that nearly 100% of that information is in this document. This document here is the
presentation that Councilmember Bynum made. He simply took the information, some of it out of
context from this information. This information happens to be the information that the
administration used in a meeting with both...well not both, all of the bond rating agencies including
Standard & Poor's, Fitch and Moody's was done on January 28 and 29 in San Francisco. So I want to
let you know that.
When I say out of context also, here's what I'm saying. When you start adjusting real
property tax across the board...across the board, what you need to understand is we have today
presently a 2% cap. That 2% cap is worth $7.3 million. That's what it's worth. You will find that in
the budget. Imagine taking away that cap. When you go across the board, you need to take away
that cap. So all of you out there that is getting the 2% break will not get it if you do a 2%. So you
need to understand that and that's what I mean when you start taking things out of context. You
need to be careful.
Number two, I would like to make this comment. I'm going to read you an analysis by many
agencies do different analyses on bonding issues, on bond ratings, background and I'd like to read
you one. San Francisco. Fitch Ratings assigns a double A minus rating to County of Kaua`i, two
and plus AA rating. Let me just read it here: "San Francisco Business Wire, Fitch rating assigns an
AA- rating to Kaua`i County, $120 million General Obligation (GO) Bonds. The bonds are expected
to sell in March of 2010. In addition, Fitch upgrades $78.2 million in outstanding GO debt from AA-
to A+:" Let me read you the rating rationale behind this. "The rating upgrades reflects the county's
sustained financial growth in terms of its revenues, liquidity and unreserved general fund balances.
Despite exposure to economically sensitive sources of revenue, the taxpayer concentration and more
recently rising unemployment rates, the county has implemented viable expenditure control and
revenue enhancement strategies for Fiscal 2011 which should protect...I'm going to say it again,
protect its high general fund balances." Don't blow it. Or let me read you something else. This is on
the economy, this is Wall Street Journal. I want to read it to you. "Big Sur, California, as...," let me
just read it again, "California's pain is only beginning. Big Sur, California. As Sacramento
squabbles over the state's $42 billion deficit, Californians are getting a bitter taste of what's to come
after the steep budget cuts that are inevitable when legislators and Governor Schwarzenegger finally
hammer out a deal. Some world famous parks like Pfeiffer, Big Sur State Park may not be open this
year. After-school programs in low-income areas are beginning-to be scuttled putting high-risk teens
on the street just as police forces are being cut. Schools are closing classrooms and some highway
projects have ground to a halt. The state may not be able to monitor some sex offenders as required
under law. A budget deal may restore some of the missing funds but everyone knows that not all
moneys will flow again after a deal, and Californians increasingly fear they are seeing a hint of their
future. Before it gets better, it's going to get a lot worse, said Joseph Valentine, who is the Director
of Contra Costa County's Department of Employment and Human Services. The department which
administers social services such as Food Stamps has cut 12% or $25 million of its budget. It has
managers answering reception desk phones and Mr. Valentine expects another round of cuts.
California today." Protect...protect our funds.
Several years ago, the largest department in this county, the police department, today $24
million. What happened to this department? A number of years ago, over expenditure of their
budget. They blew it, over $370,000, blew it. Here's the budget, here's your max, total. They
overspent that. Gone. What did we have to do? Come back again, scramble, look for money to
restore funds so that we can make payments. Be careful. Be careful what you do.
TAT funds. You know we had discussions about that. As Councilmember Kawakami stated,
if we lose it, it could be five years. What does that mean loss? Today, it's $12 million. The range of
what we've really collected over the years range anywhere from $11 million to $16 million. It's
dependent upon the income. So there's a range. We use right now and say $12 million. It could be
higher. It could be lower, but that's the...the barrel that you're looking at is you're looking at a
range of between anywhere $11 and $16 million. Imagine if we lose that next year and for the next
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• BfDGET DECISION-MAKING
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five years and maybe forever. How do we make that up? $16 million? $12 million? Simple, easy?
Be careful on what you do today because it's going to affect you tomorrow.
You know, this is my 28th year of the budget process, and I still don't know everything, and
I'm still learning. I agree with some of the items presented by Councilmember Furfaro, and I'm...but
I'm still willing to compromise, to work on things. I am considering one item which is not going to
cost anything. It's a proviso that I'm putting in. Jay, you gave me the information and it's here
someplace. You want to give it to me again? And it's relatively simple. For consideration,
councilmembers, I'm just...I'm just asking that we add to text an existing item in the Special Trust
Fund for Parks and Playgrounds in the Kawaihau District and it's in the Park Improvement and
Equipment category and it says including soccer and other equipment slash (equipmentn. I want to
add in dog park improvements - fencing. Money is there. I just want to put that line so that it is
clear that there is money for the dog park. I don't have any other comments, but I...like I said, I've
been...this is my 28th year of doing budgets. It's not simple, it's not easy, it's tough. We need to
make hard decisions, but we need to be careful. We have been fiscally responsible all of these years.
We need to continue to do that. Be careful of what you do. Thank you.
Mr. Kaneshiro: Okay. Any questions for Kaipo? Well, before I go there, I just
wanted to make one clarif'ication. I know Mr. Asing when he first opened up his comments about the
real property tax rate at 25 cents across the board being able to generate $3.8 million. I have some
reservations about that too. But what I want to say is that Mr. Bynum took that right out of context
of the presentation and I say that because I have some history on this from when we were working
on real property tax increases and so forth going back to 2002, 2003 before the caps came in, before
the 2% caps came in, before we got caps on vacation rentals...on affordable vacation rentals. At that
time...at that time when we were working on how we're going to get additional revenues, you know,
it...the formula really came out with 10 cents per half a million dollars. So if...at that time, with the
assessed value, if you take 10 cents, go straight across the board without any caps, everything was
half a million dollars. So I have some problem being able to accept the 25 cents across the board
because if you remove all of that, remove all the caps, remove all of that, you know, I would show
that today we would have to go up to about at least 75 cents straight across the board to make
up $3.8 million of revenue shortfalls. So I just was doing some calculations right now and I can show
you it's here in pencil that...how I arrived at that. So, you know, I don't want to spend too much time on that. Like I said, it was taken by context from the presentation and perhaps, I'm not certain
why I didn't catch it when we were doing the bond presentation, but anyway, you know, we don't
need to spend, I guess, too much time trying to debate whether that figure is right or wrong because
I'm presuming that they're doing some recalculation too. That was just from my past history, you
know, that I had. Mr. Asing.
Chair Asing: Yes, I'm not sure whether...well, let me just say, you know,
regarding that 2% cap, I will tell you that and I don't want to, you know, say for the newer members
at that particular time when that 2% cap and it was before that it was 4%, 6%, but when that was
introduced, if you go back in history and-look atthe reason-for that cap:..the reason for the cap, back
in history, you will find that the reason for the cap was if we give you the cap that means your
sacrifice is going to be to stop speculation. That was the reason for that. So you have to go back in
history and look at that portion. And the history behind that is that you cannot sell your house
for 10 years because we want to stop people from buying, selling, buying, selling, buying, selling,
making money, making money, making money, but not providing adequate low-income houses. So
that's the reason, but for the newer councilmembers at that time, they didn't really understand that
portion. So that portion was left out and only the 4% and the 2% was instituted, but that wasn't the
reason. When you go back in history, you'll look at the real reason for that cap, 10 years. So when
you do the cap you need to do the anti-speculation clause to effect what the intent was on what you
were trying to do, stop the speculation. So, that's a little bit about history, but I needed to really
explain that. Thank you.
Mr. Kaneshiro: Okay. So, with that, Councilmember Kawahara, do you have
a comment or questions for Mr. Asing's presentation?
Ms. Kawahara: Just to thank Mr. Asing for his presentation and just in
addition to that add that California... a lot of the rea... some of the reasons that they're in such dire
straits is also because of Proposition 13 that passed a while ago. I've been interested in the case
study of California and their proper...and their taxes, and it eviscerated their ability to make...to do
revenue and has pretty much frozen them at a certain level in the 80s, I think. So, just to add to Mr.
Asing's research is that there's an added factor of a referendum that was put through a while ago.
Thank you. Thank you, Chair Asing.
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Mr. Kaneshiro: Okay, all right.
Chair Asing: Let me just respond to...it is what it is. That's the simple
answer. If California is like that, that's the rules of their game, that's the rules of their game. So I
am giving you factual information about another area. And for you to think about that and use that
in your decision making here. History is a good teacher and I've learned a lot in history. Thank you.
Mr. Kaneshiro: Okay, with that, committee members, what we need to do
first of all is if we're okay, I would like to first of all just approve the modif'ied budget. In other
words, this is the budget that came from the Mayor's Office. It's an approved budget, then we're
going to start going down what we call the plus and minus list for consideration and so forth after
that. So this would give you enough time to look at this plus and minus because this is not official
until first we've got to approve the supplemental budget...the modified budget.
Mr. Furfaro: Move to approve.
Mr. Kaneshiro: I do have a second on that?
Ms. Kawahara: Second.
Mr. Kaneshiro: Okay. With that, all those in favor say aye.
Mr. Furfaro moved to approve the modified budget, seconded by Ms. Kawahara, and unanimously
carried.
Mr. Kaneshiro: It's just for this modification budget, remember that. And
now staff, if you could, could you please give the plus and minus for consideration. I think we're ,
there. And we'll take a lunch break and during lunch break you'll be able to look at your plus and '
minus consideration including Mr. Bynum's proposal of one-day furlough and so forth. So it's all I
going to be in the plus and minus at this point.
Ms. Kawahara: Okay, okay.
Mr. Furfaro: Is there a new plus and minus or is this the one I have.
Mr. Kaneshiro: Let's see.
Mr. Furfaro: That's the one.
Mr. Kaneshiro: If you're down to about two million something, that's the new
one...two million something (inaudible).
Mr. Bynum: Four hundred and fifty-four dollars?
Mr. Kaneshiro: Okay, so at this time we'll take a one-hour lunch break.
There being no objection, the meeting was recessed at 12:39 p.m. The meeting reconvened
at 2:59 p.m., and proceeded as follows:
Mr. Kaneshiro: Budget Session is now back to order. With that members,
what staff has done is compile a list for you of what we call a plus and minus for your consideration
and thank you staff for putting this all together and this includes the Mayor's modified budget so
with the Mayor's modif`ied budget, some of the discussions that we had earlier with Mr. Furfaro's
presentation, Mr. Bynum's presentation and the rest of the members input, this is where we're at
right now. We're going to go down the list on a per item basis on the plus and minus's, anything to
plus as you know in the budget's process you need five (5) votes to add it on, anything to minus... if
you're going to minus from another section, you're going to minus from either the Mayor's modified
budget, you need four (4) votes, so I just want you to know the process. And also if you are minusing
the Mayor also have the opportunity that if he doesn't agree with any of the line items we minus,
they can veto the whole budget and if the budget process as we go down the line if that happens,
Councilmembers remember we need five (5) votes again to overturn the video... I mean not video,
veto... override the veto, okay? So just so we understand the process, I know some of us are new in
this and I just want us to be clear as we move down the process so with that... one of the first
proposal that I saw that was on the table was in regards to the auto allowance so you know... if
that's the wheel of the Committee, we're reducing the Council, each Councilmember's auto allowance
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by a certain amount of money and once we put that and move on (inaudible) put it up on the board,
any comments to that at this time? Mr. Furfaro.
Mr. Furfaro: Yeah, this is coming from me and i felt that perhaps we
needed to consider this based on the fact that our salaries are regulated by the Salary Commission,
this reduces our monthly allowance by a hundred and fifty dollars ($150.00) per Councilmember and
I just felt that it totals twelve thousand six hundred (12,600) for all members for the year but it is
something that came out of my spreadsheet and I can support it but I wanted to let you know where
that came from.
Mr. Kaneshiro: Okay. Any comments or any additional comments by
members of my Finance Committee? Councilmember Kawahara, go ahead.
Ms. Kawahara: Thank you. I can support this because and I want to thank
Councilmember Furfaro for putting it in. It came up during... when we talking with the Salary
Commission about how and if we can change our salaries but we got a response from the County
Attorney saying that it can't be done that way so I think it's a recommission of the times that we're
in to... for us to actually be able to do it somehow to try to contribute so thank you for putting that in
and I can support that.
Mr. Bynum: I concur.
Mr. Kaneshiro: Okay and basically I want to make it clear too that that we
are taking some salary reduction too, you know what I'm saying? So besides the salary reduction,
we're taking like to furlough plan that is proposed, we're doing this additionally, so I don't want
people to think that that's all we're doing on our side. There's a salary proposed of reduction that
we, ourselves are going to be taking through the process, so this is an addition to that. Any other
clarif'ications or... if not I'm going to call for the vote on this.
Chair Asing: Yes.
Mr. Kaneshiro: Mr. Asing.
Chair Asing: (coughing) Oh my goodness... I will be supporting this and I
also want to note for members of the general public that the total amount of furlough including this
particular item will amount to each Councilmember taking... I'm going to use the word lost but it's
like the furlough so we're participating in that program also, so the total amount it'll so-called cost
Councilmembers is seven thousand three hundred and seven dollars ($7,307.00) with this item
included so we're taking a hit also. We want to be as responsible and when we talk about the
furlough program, we are also contributing in that area. For myself as Council Chair, because I
make a little more than the Councilmembers as Chair, I will be taking a hit of nearly eight thousand
dollars ($8,000.00) so I just want the public to know that with this program if we all support it,-that's
what it amounts to so Councilmembers will be making the same sacrifices as we're expecting of
others. So we're not being isolated and say no we're not going to take any sacrif'ice but the rest of
you should take it... we are also participating in this program so I will be supporting this, thank you.
Mr. Kaneshiro: Any other comment or discussions? Mr. Furfaro.
Mr. Furfaro: I just want to concur with the Chair and as I said I added this
one in there but I think it's very proactive of us to walk the talk as well.
Mr. Kaneshiro: Okay. Alright with that I'll call for the votes, all those in
favor signify by saying "aye:"
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed? None. We'll go on to the next item and the
next item would be regards to Special Project, Consultant Services we added the CZO update tax to
include twenty thousand (20,000) more so any comments on that or anyone want to speak on that?
Mr. Furfaro.
Mr. Furfaro: You know with that... with the CZO coming up and unto the
floor soon, I don't suspect that we'll see it before November but the purpose of this money is to
actually have an outside or independent review the commentary that we get from the Planning
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Department as it relates to the most recent update of the CZO and have a fresh set of eyes look at it
as well.
Mr. Kaneshiro: Okay. Any further additions to that or comments?
Mr. Bynum.
Mr. Bynum: I support this proposal and that the... we waited a long time
for the CZO it's a complex document, we want to make sure we do and have the best information...
I'm not a planner, I'll speak for myself and to be able to have an independent set of professionalized
to provide us input so we make good decisions is a wise idea.
Mr. Kaneshiro: Okay. Any further comments? If not, all those in favor
signify by saying "yes."
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed? No... let's move it a long. The next tax is we
have and this have to do with equipment for the new building and basically we're adding that but
we're also if you go down the list, when you go to CIP general fund, project contingency, we're
minusing it from there and... and the reason for this is even though we've talked about the building's
been finished within eighteen (18) months, it will be well into the next fiscal, could be taking up in
the next fiscal rather than this fiscal but through the process and the building process and the
engineering process there are some items that would have to go into the new building way before we
get into the next fiscal or like April of next year so this is to be ready to do that so we don't have to
come in and do it after and you know at that same time... because some of these have to be installed
with the building while they're building the building, in simpler terms. So it would have been
something it would have come up in the 2011 next fiscal appropriation but because we're just moving
up probably in April to get this improvements in, we needed to do that so any discussions on this
one? Mr. Furfaro, go ahead.
Mr. Furfaro: Mr. Chair is it possible we can vote on these two (2) items
simultaneously so if you are... if one of... if an individual is voting for the FF in the adjustment of
five hundred thousand (500,000) simultaneously their voting for the adjustment on the contingency
fee which brings it down...
Mr. Kaneshiro: The CIP.
Mr. Furfaro: To seven twenty-five (725) to one sixty-three (163). ,
Mr. Kaneshiro: That's a very good point.
Mr. Furfaro: I would like to vote on them simultaneously. I
Mr. Watanabe: Mr. Chair, Councilmember Furfaro is correct... 'Mr. Kaneshiro: Okay. I
Mr. Watanabe: This is for three (3) items...
Mr. Kaneshiro: Okay. I
Mr. Watanabe: It's for the furniture, the Auditor's program money, both are
coming out from the CIP so that's why it totals five sixty-four (564).
Mr. Kaneshiro: Oh I see that. Okay I got it.
Mr. Watanabe: So let's take the three (3) items...
Mr. Kaneshiro: Those three (3) items and the other part is the Consultant
Services for the Auditor?
Mr. Furfaro: Yes.
Mr. Kaneshiro: Okay. Are we all on the same page? Go ahead Mr. Bynum.
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Mr. Bynum: I just... so the five hundred is for furniture that will be in
the building? ,f
Mr. Kaneshiro: Correct but again furniture means things that has to be
installed into the wall because of the way, we got this systems coming in, you know what I'm
saying... so a lot of this going have to be going in at that point. We anticipated none of this, on this
budget but as you work with the builders and the engineering office we found out that there's really
things that need to go into the wall.
Mr. Bynum: Right.
Mr. Kaneshiro: At that point.
Mr. Bynum: Well, I just wasn't aware of this...
Mr. Kaneshiro: Okay.
Mr. Bynum: But if other Councilmembers are aware of it and
they're working on it, I would want to support that and also point out that the bid for the
construction work...
Mr. Karieshiro: Yeah.
Mr. Bynum: Of the building came in under what we had anticipated
signif`icantly as I recalled almost a million dollars and I haven't been involved in that aspect that I
know other Councilmembers have and if their saying that this is important, I will also support that.
Mr. Kaneshiro: And basically it could be possibly an oversight on our part, we
should have sat down more with Building, discussed some of these things because in reality you
know as a bill, you got to put some of these things which includes furniture items, that's what I'm
saying you know? A lot of things got to go in, for instance, some sort of storage cabinets...
Mr. Bynum: Right.
Mr. Kaneshiro: Or storage things got to be into the wall. And this is all part
of furniture, rather than building improvements and so that's the reason for this. We would have
seen something like this come up at the next fiscal but just so we can continue with the progress of
being able to get this building completed on schedule as we have discussed which was roughly about
an eighteen (18) month period.
Mr. Bynum: Okay.
Mr. Kaneshiro: Okay. And so we're going to take the vote on the five hundred
(500) plus the sixty-five (65)...
Ms. Kawahara: Actually I have a question.
Mr. Kaneshiro: On the three (3) items and then the CIP, so we'll just make a
check on that as we go down the list and the CIP will show down the list as a minus.
Chair Asing: Ah why don't... why don't we do this then... let's take each of
the item and number it. In other words the first auto allowance would be number one (1), CZO
would be number two (2), so if we all take a list the items down by numbers, then we will be voting
now as I understand it on item number three (3), item number four (4) and item number ten (10),
may I correct?
Mr. Chang: Yes.
Mr. Furfaro: It's correct Mr. Chair.
Mr. Kaneshiro: Correct. So...
Chair Asing: Okay then I think that's the way we should do it. .
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Mr. Kaneshiro: Can we all note that Committee members, the suggestion by
the Chair was to number all the way down, I believe we have sixteen (16) items, is that correct?
Chair Asing: Yes.
Mr. Kaneshiro: Okay. On this sheet so... from one (1) through sixteen (16) we
have it numbered that way we can refer to that number in case we need to skip around. Okay and I
believe Councilmember Kawahara had a question.
Ms. Kawahara: I... yeah... I am just... I wasn't aware of this also so it's in our
General Fund as project contingency? I'm looking at the CIP...
Mr. Kaneshiro: No. No this would come under CIP...
Ms. Kawahara: Yeah CIP.
Mr. Kaneshiro: Oh okay. You see it under CIP?
Ms. Kawahara: Yeah. Is that it? Here... The question I have is because so for
the next fiscal year the only amount left would be one hundred siYty-three thousand (163,000)...
Mr. Kaneshiro: That's correct.
Ms. Kawahara: For the rest of the fiscal year...
Mr. Kaneshiro: No that's correct. You're correct.
Ms. Kawahara: Yeah. For the whole year on any project contingencies.
Mr. Kaneshiro: That's only for project contingencies and remember now...
Ms. Kawahara: Yeah.
Mr. Kaneshiro: Now through the process we've seen them and I know we've
made many money bills...
Ms. Kawahara: Yeah.
Mr. Kaneshiro: In case they were coming up here, they were doing this
building, they found out they didn't have enough, we would go ahead and move with a money bill. So
in the future to as we move along if the Councilmembers feel more comfortable we could probably
make a money bill you know as we move down the road and put some money back into the
contingency if you feel that-way also, so there's options but at the same time we're being really
cautious, we've been watching how the building and unexpected cost fall in line and we had to make
money bill.
Ms. Kawahara: Okay.
Mr. Kaneshiro: So it's that your choice we can move in that direction.
Ms. Kawahara: Okay. Thank you.
Mr. Kaneshiro: Mr. Bynum, go ahead.
Mr. Bynum: You know the Administration also in their revision remove
some from contingencies...
Mr. Kaneshiro: Yeah. Right, correct.
Mr. Bynum: . However a lot of our bids are coming in under budget unlike
in the past and as you pointed out we have mechanisms to address that if it comes up but I did have
some concern that it's a smallest amount I've ever seen us put in contingency...
Mr. Kaneshiro: Yeah I know. Historically there were... we kept an average I ,
would say roughly about two million most of the time. '
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Mr. Bynum: But as you correctly pointed out, there are mechanisms for us
to address that.
Mr. Kaneshiro: Absolutely.
Mr. Bynum: So...
Mr. Kaneshiro: And I wanted to bring that point up to as we see the project
comes up, they may have gone over, we need more money, they will bring it before us and then we
can make those discussions. What this does is that it gives them the flexibility to do that... and
most of the time the way the projects are coming in line too, we'll have ample time to be able to do a
money bill if need be too, as we've experience through the process. Okay, with that I want to take
the vote on all three (3) items, all those in favor of three (3), four (4) and ten (10) say so by "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Unanimous. Okay now we will go to item number five (5)
and I guess this is a minus off of the Police overtime, is that correct? And I'll have Mr. Furfaro touch
a little on that at this time.
Mr. Furfaro: Well as you know I have asked and will be providing a proviso
to ask us for revisit this in December but as we get to the cell guards and the dispatchers being an
item that was addressed in my notes but also in the Mayor's notes, the reality is, we no longer will
need to have officers transfer to the cellblock and/or to dispatch to support because we're terminating
those furloughs that is in that area and at the same time in my proviso that we talked about later,
we would revisit this in December so that is the reason why I'm saying that we might reduce this
amount giving the fact that we put cell block, personnel and dispatchers back in the budget which
would not be used by officers. And it's only five percent (5%) of the total.
Mr. Kaneshiro: Of the total overtime...
Mr. Furfaro: But it's at least worth giving us a target on the overtime
savings.
Mr. Kaneshiro: Okay any comments on this or discussions on this proposal?
Again as we go down the list, staff is putting it up on the board in the back of us so you can see
what... where we're at, what we plus and what we minus so you can take a look at it, we have a list
in front of us that shows all the sixteen (16) items but as we go down you know, we see the plus and
the minus so far. So with that I see no other further comments, all those in favor of that signify by
saying «aye.
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed? Hearing none, that item is carried on and we'll
go onto the next item and I believe that's item number six (6) and it's adding twenty thousand
dollars ($20,000) to other services for economic plan, implementation by KEDB so I'll open that up
for comments or any suggestions at this point. Anyone has anything to add on that? Mr. Kawakami,
go ahead.
Mr. Kawakami: Yeah this is for Kaua`i Economic Board...
Mr. Kaneshiro: Correct.
Mr. Kawakami: They're the caretakers of our comprehensive economic
development strategy which in my opinion is equally important as our General Plan, it's lays a
blueprint for economic developments so this is twenty thousand (20,000) to support the
implementation of that plan.
Mr. Kaneshiro: Okay. Any further discussion on this or?
Chair Asing: I concur with Councilmember Kawakami, I think it is a good
move on our part, thank you.
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Mr. Kaneshiro: With that, I'll just call for the vote, all those in favor, signify
by saying "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed, hearing none, that motion is carried. We'll go to
number seven (7), item number seven (7) as we move down our list, our plus and minuses for
consideration is a position where we changing the recycling specialist, one (1) to recycling
coordinator then increasing that salary to nineteen thousand dollars ($19,000) so do we have anyone
wanting to speak on this or have some comments on this at this time? Mr. Furfaro.
Mr. Furfaro: Yes if this came from my list, I thought the amount was only
eighteen (18) not nineteen (19) but maybe it came from someone else's list and I just wanted to say
that there's going to be a period of investment needed to identify you know, the importance of this
position may come from somebody growing into the position...
Mr. Kaneshiro: Okay.
Mr. Furfaro: So I'm not saying change the Mayor's plan of coordinator now,
what I'm saying but if we are investing in somebody and they are growing with the process, I wanted
to make sure we had the money there as we have some continuity in the growth in that Department.
Mr. Kaneshiro: Okay any further comments on this? Mr. Bynum.
Mr. Bynum: I support this proposal and I'm hopeful that the
Administration will hire a person with the... already with the training and expertise to be program
manager and this is something that we talked about for a couple years and I support this.
Mr. Kaneshiro: Okay any other comments on this, before I call for the vote.
Chair Asing: Yes.
Mr. Kaneshiro: Mr. Chair. Chair Asing: I have some reservations I do not feel that it's necessary. But
I will compromise and vote for it but I will do so with reservations.
Mr. Kaneshiro: Okay. And again you know as our Finance Chair, you know,
Committee members the Administration you know, are the one eventually will fulf"ill this position so
I mean, even though we budget that amount, I'm at powerless to tell them when to fill in or what to
do. But you made a very good point where that you know, as we move along and when it's ready at
least the money will be there to be able to support that position when they're ready to move into the
direction so.
Mr. Furfaro: Thank you, thank you Mr. Chair.
Mr. Kaneshiro: Alright, with that I'll call for the vote and all those in favor
signify by saying "aye:"
Councilmembers: Aye.
Chair Asing: Aye with reservations.
Mr. Kaneshiro: Any opposed... With reservations, okay. We will note that.
Alright let's move right along. Next one that we have on here is item number eight (8) and this is
regards to special projects and this would be under the KPAA right? And any further comments on
this? This is an additional nine thousand dollars ($9,000.00) to that program. Anyone wants to
make comments on that? i
Mr. Furfaro: If you recall when Diane was here expressing to us the every II
other year summary sheet, that gives us an idea exactly what are indicator's are, the production of
that document for the community is about seventy thousand dollars ($70,000.00) I think also as we
get closer to what could be global issues from a financial standpoint, the kind of information that we
get out of Kaua`i Planning and Action Alliance is going to be very important to us to make
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interpretations about direction and policy and therefore I will be supporting this nine thousand
dollars ($9,000.00).
Mr. Kaneshiro: Okay any further comments on this or discussions on this
particular item?
Ms. Kawahara: I concur with Councilmember Furfaro, the report and
indicators that we get from KPAA are really great indicators of where we're going and what's
happening, there perfect snapshots in time of all of the issues that are impacting the community, I
strongly support us giving them the nine thousand (9,000) extra. Thanks.
Mr. Kaneshiro: Okay any other further comments or discussion on this item,
item number eight (8), nine thousand dollars ($9,000.00) more in addition? If not, I'll call for the
vote, all those in favor signify by saying "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed? Motion is carried. We'll go on to another
Special Project which is the Kaua`i Humane Society, it's an additional of thirty-two thousand
(32,000) to their budget and basically what this budget will do it will replace them to I guess their
current funding (inaudible) then what they had in their last budget so with that we show here thirty-
two thousand (32,000) are there any comments or discussions on this item, members? Mr. Furfaro,
go ahead. •
Mr. Furfaro: Thank you Mr. Chair, as I recall in the presentation from the
Humane Society, without this money for them to balance the budget it was their indication that they
would abandon the picking up of the...
Mr. Bynum: Decease.
Mr. Furfaro: Decease animals on our roadways and so forth and yet at the
same time it is not easily something that we could pass on to Public Works who will be on Furloughs
but I also think it is a safety issue if we were to have animals linger in a deceased mode on the
highways, it could become a dangerous situation.
Mr. Kaneshiro: Okay, you brought up a good point with that. Mr. Bynum.
Mr. Bynum: I want to just say I'm thankful that we have a non-profit to
take on this responsibility, it will be difficult for the county to do animal control and Kaua`i Humane
Society currently put I believe about two hundred thousand (200,000) of their own fundraising
dollars into services they provide for the County, pretty unusual to have a non-profit to use their
resources to subsidize the county service and so I think this is a reasonable thing-and I concur with
Mr. Furfaro, I wouldn't want our roads crew to take on this new responsibility and I think this was
responsible for Kaua`i Humane to say hey if we have to do this, we... something will have to give
somewhere so... I'm in support of this.
Mr. Kaneshiro: Okay any further discussion on this? Go ahead Mr. Chang.
Mr. Chang: Thank you Chair. I also wanted to make a little bit of note
that many of us weren't even thinking about it but most of the dogs deceased or some of the cats
deceased, they all their chips on so consequently you know giving the families a little bit of closure
that they can identify and they also do call the owners of the unfortunate incident so that's another
thing that we can thank the Humane Society about also.
Mr. Kaneshiro: Well you brought up a point that I was going to say because
you know the owners have to take some responsibility too, because as you know we do have a law
where dogs are not supposed to be running on the roads anyway so if you're a owner, you know, and
you know somehow your dog gets hit, I mean this is part of the way of finding out if your dog got hit
or not, but one of the first ways for your dog not getting hit is by obeying some of the rules and the
laws that we already passed so you know it's a two-way situation where some homeowners have to
take on some responsibility also but I'm passionate about the place that even those there are certain
times when you have lightening and thunders, no matter what you do with your animal, somehow
they find a way like Houdini and escape and so I think we've all experienced that, I've experienced
that before, fortunately you know the Humane Society did pick them up someplace on the road and
bought it back to the center but you know those are under circumstances like that but the public
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really needs to help us too as we tightened up our belts, we tighten up the money, they got to be
more responsible too to not give as much work for everyone else to take on so I just wanted... I
thought this would be a good time to make that point also. So any other comments with this or
discussion on this? If not, I'll call for the vote, all those in favor say "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed? Motion carried. And now we'll go down to...
let's see, we're going down to number eleven (11) and this is to restore funding for the DC Lobbyist
and it is in the amount of a hundred thousand dollars ($100,000.00) so at this point anyone want to
make some comments on this, I'll go ahead and open it up. Mr. Bynum.
Mr. Bynum: Yeah I put this on the list and I don't know where my
colleagues are at with this but I do want talk some about my recollection and the history of this and
you know, I'm kind of reluctant because DC is not a real popular term these days, Lobbyist is never
been a popular word but you know, we and there was quite a bit of discussion between this Council
and the Administration particularly last term and made this move and that, and I think it was a real
collaborative effort, this needs to be handled by the Admuustration for the separation of powers, but
why would we want a DC Lobbyist and what was this history was, we had a Lobbyist that I don't
think the Council was fully integrated with at one time, you know, Mr. Kouchi provided some
leadership on this, work with the Administration to come up with a change of that so the Ferguson
Group who we hired last year for their first year. When we were at budget hearings, I asked the
. Administration I was surprised to see this not in the budget and I asked the Administration and
they said they were really considering perhaps they might add it back, I would hope that it would
have been in a revised budget but they also indicated and I believe that's our experience to that the
Ferguson Group did a really good outstanding job with working with the Administration and us in
collaborating, working with our congressional delegation and you know this is a firm that represents
municipalities primarily, their (inaudible) in DC and the reason why we would want to do this is
because they have their finger on the pulse of the federal budget, they become aware of opportunities
that our congressional delegation may not, things happen very quickly in DC, sometimes with money
and they can be in a position to alert us of an opportunity for this County which literally could mean
millions of dollars. They also provide service to our legislative group in terms of preparing all of the
paper work, doing liaison and making it easier for our congressional delegation to cease
opportunities on behalf of the County of Kaua`i. It's just the human factor, we have one of the best
congressional delegations there especially with Senator Inouye and Senator Akaka who are very
akamai at this process but it's just... if they have this firm that we've hired and has done a good job
for us, you know, it makes it more li_kely that we'll be able to capitalize on these things. Just one
catch can more than pay for years of this Lobbyist service. And nobody disagrees that we weren't
happy with their work and they've made a commitment as I understand it Kaua`i... we would be the
only client in the State of Hawai`i and I'll predict that if we don't retain them and we invested a
hundred thousand (100,000) in getting them up to speed and being our representative... that's
something that I think is in the long run our best interest to continue and if we let them go, I
predicting somebody else is going to pick them up. I just... like I said I don't know where the rest of
the Council is at with this but I wanted to throw it out there because I think it would pay dividends
potentially.
Mr. Kaneshiro: What I want to make reference to is that currently we're just
voting on the funding okay? We're not voting on a particular firm. You know I know we've had
experience of using a firm but at the same time if the funding goes or doesn't go, they also have the
discretion of getting another firm.
Mr. Bynum: Right and that's...
Mr. Kaneshiro: Just to...
Mr. Bynum: Yeah and that's the Administration's call.
Mr. Kaneshiro: Yeah and I know you made reference to the Ferguson Group
because they were the ones that were there at the last session.
Mr. Bynum: I believe their... that's a good point.
Mr. Kaneshiro: Okay.
Mr. Bynum: I believe they're the ones that is currently under contract.
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Mr. Kaneshiro: I just wanted to... that doesn't mean we're going to put
money back there and hire the same firm.
Mr. Bynum: Right.
Mr. Kaneshiro: Alright, any further discussion on this at this time?
Mr. Kawakami.
Mr. Kawakami: Thank you and the points made by Councilmember Bynum
are very true and I appreciate the effort to restore some funding into the DC Lobbyist because I
think of anybody at this table, I think I got to see firsthand the value that they bring to the table,
however, what I also got to see is the close relationship between our senators and the County of
Kaua`i to the Administration to the County Council, to the personal relationships that we've built
with our congressional delegation over the years, so I think, I'm not going to support restoring the
hundred thousand (100,000), I appreciate the effort too, because like I said everything you said is
true but I'm willing to work harder, I think the Administration is willing to work harder, I believe
that we can still capture the great return on investment by going into this on our own especially
during these challenging times. . I've worked with the Administration and saw that they can
effectively also lobby with the support of all County Councilmembers we have been able to lobby for
money and I think that that says a lot about our personal relationships with Washington DC and
so... you know we're adding in, we're adding in a lot of money to other priorities and at some point
we need to see what we're going to cut and the work that the Ferguson Group has been tremendous
but at this time I will not support putting in the hundred thousand (100,000) for a DC Lobbyist.
Mr. Kaneshiro: Okay any further discussion on this item or anyone wanting
to add anything else to this? Councilmember Kawahara.
Ms. Kawahara: Yes. I want to recognize that the offer and the hard work that
Councilmember Kawakami says that he's willing to put in...of the funding for the DC Lobbyist. I
also want to recognize that Senator Inouye and Senator Akaka definitely have their ears open for the
County of Kaua`i, my concern remains though... just at the county level the amount of paper and
testimony and things that we get is incredible I think as everybody on this table knows. I know the
intentions are good and that everybody wants to do the best they can for the county on the federal
level, my concern is that there is not going to be there day to day just focus solely on us, I've been to
the Senator's Offices, I've spoken with their staff, their incredible people and just the volume of work
that they have to do and the volume of research and the volume of information that they get is quite
overwhelming and having one hundred thousand dollars ($100,000) just for Kaua`i to have a voice to
put in front of their face day to day when anything comes up... is something that I think is... has a
great value and I'm acknowledging and recognizing and just definitely saying that Derek and
Senator Inouye and Senator Akaka will always lookout for us but one the day to day basis and with
all the information and stuff they get already, I would feel... I feel there's a great value in having
someone dedicated that's not a current Councilmember, that's not a current Senator or two (2)
current Senators that would be supporting and looking out for us just because of the volume of work
and information we know we get here and I know they get there on my visits so thank you.
Mr. Kaneshiro: Any further discussion on this? Mr. Chair.
Chair Asing: First of all I would like to say that the Ferguson Group did a
good job, they've done well but in these tough economic times we have to make some tough decisions
and i feel that over the years and I'm talking about many, many years I have had great trust in our
congressional delegation and our relationship that we have had with them has been great. And with
the amount of work that needs to be done, I believe that the delegation with their staff forces
together with as an example our two (2) representatives of NACo and WIR both Councilmember
Chang at WIR and Councilmember Kawakami with NACo, yeah? We have been getting good results
so at this time I will not be supporting the funding for the one hundred thousand dollars
($100,000.00) thank you.
Mr. Kaneshiro: Any further discussion by Committee members before I call
for the vote? Mr. Chang.
Mr. Chang: Thank you Mr. Kaneshiro. I was able to experience for two
(2) years the great work if we're talking about the Ferguson Group and Roger Guinn, he prepared us
extremely well prior to get up into the hill. One thing I do notice and I would like to say is prior in
meeting with the Senator's, Councilmember Kawakami and I met with the staff the day before and
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the staff is really accommodating, I believe they know the issues with Kaua`i and they love the island
of Kaua`i and its people. When I found out in Washington, I believe the Ferguson Group was on a
month to month trial basis, I told myself now how can lose someone like him with the pulse that you
know, our projects the hundred thousand dollars ($100,000.00) can pay for itself but I do feel
conf"ident at this particular time that the staff in Washington DC the relationships that we have with
our Administration and Washington DC, relationships that this Council has with the aids and the
people there, that I do believe that you know, we can you know all work harder and I believe that we
can all do that much more to keep our eyes and ears open also but concentrate and nurture the
relationships so we're not left out that they continue to step forward for this island of Kaua`i, so I too
will not be supporting this hundred thousand dollars ($100,000.00), thank you.
Mr. Kaneshiro: Mr. Bynum.
Mr. Bynum: I appreciate the input and consideration and I just want to
add that Mazie Hirono and Neil Albercrombie also have (inaudible) just make sure that we don't just
single... and we don't be able to mention that how closely they worked with us as well. So thank you
for the consideration.
Mr. Kaneshiro: That's a very good point to. With that I'll call for the vote, all
those in favor?
Mr. Bynum/Ms. Kawahara: Aye.
Mr. Kaneshiro: No?
Chair Asing/Mr. Furfaro/Mr. Chang/Mr. Kaneshiro/Mr. Kawakami: No.
Mr. Kaneshiro: So we'll go onto the next item and I guess we're on
twelve (12), now remember everything we're adding on, we got to find a place to minus out to now... I
just want to let you know as we add, we also got to minus some place but we'll... what we'll do is
keep going and then we'll see where we end up at so at this point, so Mr. Bynum?
Mr. Bynum: Perhaps we can take twelve (12) and thirteen (13) together,
that's really the same issue.
Mr. Kaneshiro: That's... if you feel that will be okay, Committee members, is
that appropriate to take twelve (12) and fourteen (14)... twelve (12) and... I mean...
Mr. Bynum: Twelve (12) and thirteen (13).
Mr. Kaneshiro: Twelve (12) and thirteen (13) together? With that any
discussion on these two (2) items regarding the funding for YWCA and this would be in the amount
of twelve thousand (12,000) for the family violence shelter and also seventeen thousand eight
hundred two, thirteen (17,813) for the sexual assault treatment program, do we have any discussions
on this items at this time? Mr. Bynum.
Mr. Bynum: This is a budget item the we've had for some time, is was
interesting last year because the YWCA you know, does the sexual assault twenty-four (24) hour
hotline services and also the shelter for domestic violence and we know that in tough economic times,
their services are at a greater need. I know that they have taken very large budget reductions from
the State and the Prosecutor's Office also traditionally has funded by pushing through VOCA and
(inaudible) grants. We heard from Shaylene during her budget testimony that she will not be able to
give the same amount to the Y that she has in the past, I spoke with her again today to confirm that.
And this funding would resort it to last year's funding which had been reduced. They are just going
to have a very difficult time keeping services available on a twenty-four/seven (24/7) as needed basis
the way they done it. We don't fund a lot of social services and... in our county budget and I think
that's a good things because it's primarily a responsibility of the State but in this instance, these are
the frontline social service agency, these are the guys that are out there dealing with people in
various serious crisis and they need this support, so I hope members will consider this.
Mr. Kaneshiro: Okay any further discussion? Mr. Furfaro.
Mr. Furfaro: Yes thank you. I too will be supporting this. I you know, I
have concerns that are to fold you know, we're seeing many of the social program being reduced on
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the State level and on the flipside as we go through these very turbulent times, we're actually seeing
the abuse that occurs so I think it's very important that we approve both of these.
Mr. Kaneshiro: Any further discussion on this? Mr. Asing.
Chair Asing: Yes. You know I will be supporting this first of all. But I
want to let the public know that... you know in the years prior what the legislature have told us is
that, these are really State programs and stay out of our area, that is our kuleana. We will take care
of that, you take care of your county issues but as time has passed things have changed they have
changed as an example like even the lifeguard issues. Issues that we felt on the county level, it is
our responsibility and yet the State has not as an example, funded lifeguards for State Beaches so
we end up having to do it and it's clifficult but if they don't do it, we're forced to do it. For that
reason, I will be supporting these two (2) items, with that thank you.
Mr. Kaneshiro: Okay any further discussion? If not, I...
Mr. Bynum: May I? I'm sorry... I just want to...
Mr. Kaneshiro: You got the votes...
Mr. Bynum: I really... I know... but... I just really want to agree with the
Chair that...
Mr. Kaneshiro: Absolutely.
Mr. Bynum: That I don't... I think as a county and I've seen this on the
council before I was on it that the county has stepped in when the State left a situation where we
just couldn't tolerate it on Kaua`i whether it was coqui frog or civil air patrol, but I think that's a
really good precedent that the Chair has said that that's when we will step in is when it's just
attainable not to. I don't think we want to get into a situation where as some other counties have
where we are funding social service things, as much as I care and am passionate about those
issues... the Chair is correct, it's the State's responsibility primarily and... so I just wanted to
underscore that.
Mr. Kaneshiro: _ Okay any further discussion on this discussion? Mr. Furfaro.
Mr. Furfaro: Yeah I think I said the same earlier, the fact of the matter is
these are really social programs that we look towards the State and I concur with the Chairman
completely but during these difficult times, I will look favorably on this but hopefully we will be
sending a message that doesn't indicate that we can subsidize every pass State programs, so.
Mr.-Bynum: If we were making up the shortfall, we'd have to do a lot more
but this is just maintaining our level.
Mr. Furfaro: We understand.
Mr. Kaneshiro: Okay, with that, I'll call for the votes. All those in favor?
Councilmembers: Aye.
Mr. Kaneshiro: Any no's? With that we'll move on to the next item. And the
next item will be listed as item number fourteen (14) is to restore funding for the Head Start
Summer Program of seven thousand dollars ($7,000.00). Anyone wanted to have some discussion on
that?
Mr. Furfaro: These are... very needed families that need an opportunity to
be able to start on a level playing field because within their family structure, they are at the very
minimum and they need an equal opportunity to get a good start, a Head Start and I will be
supporting this request for the additional seven thousand dollars ($7,000.00).
Mr. Kaneshiro: Okay. Any further discussion by members of the Committee?
Mr. Asing.
Mr. Asing: I will be supporting this also and I think Councilmember
Furfaro, you hit the nail on the head, it's the needy, it's the poor and we need to step in and help and
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assist and I will more than happy to support this program because it is a very worthwhile program
in helping those especially in need, thank you.
Mr. Kaneshiro: Okay, any further discussion? Go ahead Mr. Bynum.
Mr. Bynum: Just very briefly, it also compliments our own summer
program and that these are preschool kids and so a lot of these parents will have kids in our summer
fun program and without this support so... it's going to be really difficult for them... so that's it.
Mr. Kaneshiro: Okay. Seeing no further discussion, I'll call for the vote. All
those in favor signify by saying "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Any no's? Motion carried. Okay we'll go to the next item now
and this would be one (1) furlough day estimated that was proposed by Mr. Bynum, we've seen his
presentation so at this time, I'll open it up for discussion and this would be adding two million four
hundred seventy-three (2,473,000)...
Mr. Bynum: No. .
Mr. Kaneshiro: Six hundred...
Mr. Bynum: No... One million seven...
Mr. Kaneshiro: Oh.
Mr. Bynum: Hundred and twenty six thousand three hundred and fifteen
dollars.
Mr. Kaneshiro: One million seven hundred twenty-six thousand three
hundred fifteen...
Mr. Furfaro: The numbers are inverted here.
Mr. Kaneshiro: Dollars, okay, sorry... we got it.
Mr. Bynum: And so...
Mr. Kaneshiro: With that I'll open it up for discussion.
Mr. Bynum: And I'll be brief because I did make a presentation, I
appreciate your support, you know, but there is a sentimentin the community that you know, these
are the really difficult times and that government workers need to contribute and participate and I
agree with that and I know that our county workers have already... have a you know a increase in
their health benefit contributions for their community and this is not eliminating furloughs, it's
keeping it at one (1) day which is a signif'icant cut, we also have our workers stepping up and
providing good service to our community with fewer people, a lot of them are in units where their
colleagues aren't there and they really are meeting it so and I've made the presentation earlier that I
think this is reasonable, I think we can afford it and we need to deal with the diff"iculties in our
budget but I think the contribution that we're asking nine hundred (900) county workers to give is...
a little excessive so.
Mr. Kaneshiro: Okay further discussion? Mr. Furfaro. I
Mr. Furfaro: Yes. As I indicated earlier and as we ran through the
numbers today, I do want to say it was a difficult decision by the Administration as well as us a
group but I do want to point out that one of the provisos that I've put in and will hopefully will get
approve in the budget narrative, is a revisit in December to see exactly where we are and have a
better understanding of you know what kind of performance effects is this having on us so you know,
that was my position earlier and I think a revisit or re-forecasted in December is very important for
us to do.
Mr. Kaneshiro: Okay. Any further discussion on this item at this point?
Councilmember Kawahara.
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Ms. Kawahara: Yes. I don't think there's going to be the votes to do this but I
do want to say there are several reasons why I would support it. County... government workers in
general... for right now definitely their health benefits are being, the cost of the health benefits are
increasing, they historically have lower wages than anything paid in the private sector, we're
currently working with positions that are dollar funded, so there doing more with less. And I... I'm
not saying that we need a bigger government but I am saying that there has been a consideration I
think in that everybody, that there's a quote I wanted to say is... equalization of misery, to equalize
the misery across everybody, I think the County workers and State workers do have other things
where private sector may be have better benefits and better wages, these people work hard, they
don't usually get a lot of respect especially when services are being decreased, their work load in
increasing and the public is saying well I pay your wages: I just want to recognize that in hopefu]ly
adds some kind of awareness and acknowledgement that it takes a special type of person to be
willing to work in public service, it's not... it's definitely not all flowers, roses, and perfume kind of
things... I'm a State worker, I have been and there's a lot of things that happen with to county and
state workers that would never happen in a private sector, nobody would ever scream and yell at
somebody in a private sector but it happens\ and I think we need to recognize that and I recognize
the need to be able to spread, spread the burden. But my support for it would be for that not saying
that we need to make sure that the county workers suffer as much as someone in the private sector,
just the recognition that there are give and takes in being in public service and that a two (2) day
furlough is heavy by many standards, we're talking about one hundred (100), two hundred (200) or
more per paycheck and I've worked with people... I know that how hard that is so just a comment on
that and yeah just a little prospective from my point of view and I appreciate it. Thank you.
Mr. Kaneshiro: Okay any further discussion on this? Mr. Furfaro.
Mr. Furfaro: Yes you know I would like to say it's a very, very difficult
thing to do here and I would hope that from my colleagues I would get support to revisit the proviso
in December, I think it's really important. But I do want to also point out in the private sector, T
mean, we are now at nine point three percent (9.3%) unemployment, many in the private sector have
lost their opportunities for work. I do want to say that we have a wonderful group of employees in
the County of Kaua`i, I believe I understand how very hard they work. I just want to say it is a very
difficult choice but it is a choice that we need to have in revisiting in December and you know for me
to vote on this it needs to be a re-forecasted and revisit in December.
Mr. Kaneshiro: And I conclude with you on that aspect that I do see the
proviso (saying it wrong), proviso... I know you said you misspelled it but I'm having a hard time .
pronouncing it...
Mr. Furfaro: Proviso.
Mr. Kaneshiro: Oh-proviso. Butlater-on we'll go on-and have some discussion
on the proviso and how it relates to this furlough program that you're talking about for the two (2)
day furloughs. At this time, do we have any further discussions on this item?
Chair Asing: Yes.
Mr. Kaneshiro: On the one (1) day furlough?
Chair Asing: Yes. I will not be supporting this program, I'd like to... I
guess disagree with Councilmember Kawahara about the private sector getting better benefits and
better wages. I do not believe that that is true today, that may have been true before, but I do not
believe that is true today and let me just give you one (1) example, twenty-one (21) days of vacation
as soon as you start, as soon as you start... twenty-one (21) days vacation. For me coming from a
private sector, what we found in our case was you had to work ten (10) years before you get twenty-
one (21) days of vacation and with the State and County you start work, you get twenty-one (21)
days. It is almost unbelievable, I don't know how this came about, I don't know the history behind it
because I haven't been here long enough, it is prior to my time even getting on the Council but I
couldn't believe it. At any rate, I have some problems and I think that again as I stated very early
on in my... my talk that we need to be prudent. We need to be careful of spending all our resources,
protect ourselves for the future down the line, be careful, hold on, we've done a good job, the reports
have been great from those people who make the decisions on our bond rating. Our bond rating is
extremely, extremely important because we will get breaks that is in the millions of dollars when we
borrow so I think that is so important so with that I will not be supporting this item, thank you.
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Mr. Kaneshiro: Any further discussion on this item? If not I'm going to call
for the votes... at this time I'll call for the votes, all those in favor of having the one (1) day furlough
signify by saying "aye?"
Mr. Bynum/Ms. Kawahara: Aye.
Mr. Furfaro (stepped out)
Mr. Kaneshiro: Opposed?
Chair Asing/Mr. Chang/Mr. Kaneshiro/Mr. Kawakami: No.
Mr. Kaneshiro: So motion carried at this point. We have one more item on
the agenda that this time on the plus and minus for consideration and this should be extending the
bus service that includes Sunday service. And that's in the amount of two hundred thirty thousand
one fifty-two (230,152) so at this point, Mr. Bynum.
Mr. Bynum: Thank you. I know you've all received the fairly large volume
of mail from the community I'm particularly impressed with thirty (30) local organizations
supporting a request to this Council to address the economic times by extending the bus service.
You know, I don't know if people know this but in 2005 we had a hundred and eighty-seven
thousand (187,000) transit rides and in 2009 it was four hundred and twenty-nine
thousand (429,000) that's a huge increase the bus has become an important part of our community.
The... you know we were given a list of possible ways that bus services could be expanded and that
was... came from the taskforce and from the Transportation Agency so we know the numbers are
accurate. The testimony that moved me the most I think, was from individuals who said I can't
afford a car I can't physically can't drive a car, I work, I work hard and I the bus to get to and from
work but on Sunday's, I can't go to the market, I can't go to church, I'm stuck at home and you know
I've said at this Council before that I thought that the night... the evening and the Sunday service
were part of trying to address the needs of citizens who have maybe perhaps have the greatest need
in the community. And this proposal also happens to be the least expensive of the proposals that
were outlined because it doesn't entail any new equipment or positions. It is about extending service
for Sundays for that portion of our population on the same of this Saturday's schedule so it's not a
real health schedule but at least it allows people to get to church, to work, to home and you know I
want to be responsive to this outpouring of support from the community, from KCC, from Wilcox
Hospital, you know we heard from Ellen Ching today about how you know people with Development
Disabilities rely on these services and I think the time is right for us to do a modest move by
extending service on Sunday's.
Mr. Kaneshiro: Okay with that, any further discussions on this item?
Mr. Furfaro.
Mr. Furfaro: Mr. Chair, I just wanted to get some clarification... The
hundred and seventy-one thousand f'ive zero f'ive were reinstated the existing level of the bus...
Mr. Kaneshiro: Correct.
Mr. Furfaro: When we approved the earlier segment that was in there, so
we're back to what the current schedule levels are with no changes, drivers still working those beets,
am I correct?
Mr. Kaneshiro: Correct.
Mr. Furfaro: I just wanted to make sure I...
Mr. Kaneshiro: You're correct.
Mr. Furfaro: I interpreted that correctly that my earlier changes actually
got in the approved piece.
Mr. Kaneshiro: This is in addition...
Mr. Furfaro: Understood.
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Mr. Kaneshiro: (inaudible) other than that. And I believe in your earlier
comment you mentioned about the energy sustainability plan...
Mr. Furfaro: Yes.
Mr. Kaneshiro: As part of one of the ways that we can look at providing you
know, and opening it up more routes at such so...
Mr. Furfaro: And that should be... the Resolution should be ready in about
two (2) Council meetings so.
Mr. Kaneshiro: Any further discussion?
Chair Asing: Councilmember Furfaro if I may ask...
Mr. Furfaro: Yes.
Chair Asing: Then would that essentially take care of this problem?
Mr. Furfaro: Well I think it would address part of it...
Chair Asing: Part of it. Okay...
Mr. Furfaro: But I don't... I don't think that in the first year we showed
that kind of money... .
Chair Asing: Okay.
Mr. Kaneshiro: That's correct. That's correct. Okay any further discussion
on this item.
Chair Asing: Yes... I won't be supporting this item, thank you.
Mr. Kaneshiro: Okay any further discussion? Tim, you wanted to add
something on this?
Mr. Bynum: Yeah I just wonder if... I'm just looking toward the energy
sustainability plan, that proposal is to add six cents to our gasoline tax or six cents per gallon to our
gasoline tax.
Mr. Kaneshiro: Correct.
Mr. Bynum: And I don't... I don't know if they'll be support for that... that
would certainly generate more than enough revenue to cover this Sunday schedule but again this is
a social justice issue to me that we have a segment in our society that doesn't have an option, that
this is the option that they have and we... without extending these services leave them stuck and not"
full participants in our community so... I hope...
Mr. Furfaro: I just wanted to be clear that we reinstated the whole bus
schedule as it exist right now and I'm just thinking maybe we can give ourselves a chance to look
what kind of support there is out on the sustainability plan, now that we have come down to six... six
in a half cents a gallon, you know we'll be looking at that Resolution in about two (2) weeks.
Mr. Kaneshiro: Okay and again you have a proviso in here where we will be
looking at like you said in about six (6) months...
Mr. Furfaro: The whole budget (inaudible)
Mr. Kaneshiro: Right.
Mr. Furfaro: In December.
Mr. Kaneshiro: And then by that time we know, you know, many (inaudible)
other variables will be in play that... so you know... okay... and we're going to get into discussion on
those after we finish the plus and minuses. Go ahead Councilmember Kawahara.
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Ms. Kawahara: OkaY thank You. And I want to thank all of the PeoPle who I
sent in testimony and all of the organizations that support and... at least keeping it as it is and also
maybe increasing it. I support the... the increase to Sunday, I think the amount that's requested is
reasonable, I just want to comment that... just like... libraries during bad times that's when they get
used the most. And I think also would be a parallel to transportation, public transportation when
times get bad we more than ever need viable and legitimate transportation options for people.
They're not necessarily going to say they need it or that they use it but I think the numbers show
that it's increasing the... the use is increasing tremendously. I think that has to do with the
economy, it has to do with people not having the same amount of money for insurance, everything
like that so based on my under... my belief is that that when the economy gets harder and people are ,
scrapping by even more so, public transportation is something that that we can do as a government
to ease some of that, thank you. II
Mr. Furfaro: May I respond to that?
Mr. Kaneshiro: Absolutely.
Mr. Furfaro: I again I hope to revisit this Councilwoman Kawahara in
December but you know, I've served... this is my seventh (7th) year on the Council and every year
we've been able to grow the bus.
Ms. Kawahara: Yes.
Mr. Furfaro: I thought it was our first duty as the point that we've grown it
to this point is to convince the Administration how vital it is to keep what we have right now, I think
it's extremely important. And I agree with you there are you know people who depend on the bus
right now and you know we have some other avenues to query, some of the hotels that never came
through about them contributing to bus passes above and beyond what they're doing now for
employment opportunities for their staff as they go through recruitment but I'm very serious when
I'm talking about revisiting this budget in a form of a re-forecast in December and at the same time
I'm very grateful that you know the notes that we send over to the Administration, they have you
know, strengthen the driver portion of the bus department to keep the schedule that we have now,
they just expanded this year. So every year there's been growth and every year we've had some
growth in incomes to help offset those cost but perhaps I'm just a little bit more cautious with a view
in December and at the same time, very pleased that we have the energy sustainability and
transportation plan coming up again in a couple of weeks, as well of the fact that we've already
earlier re-established that the bus will not be reduced from its current level, so I hope to look at this
again in six (6) months.
Mr. Kaneshiro: Okay any further discussions or comments by our Committee
members? If not I'm calling for the vote. Those that are in favor of the additional two hundred
thirty thousand one fifty-two (230,152) to the budget to include the Sunday service, signify by
saying aye.
Mr. Bynum/Ms. Kawahara: Aye.
Mr. Kaneshiro: Opposed?
Chair Asing/Mr. Chang/Mr. Furfaro/Mr. Kawakami: Na
Mr. Kaneshiro: Okay with that we're down to the bottom on our plus and
minus for consideration but we'll have what we'll do is have staff go ahead and start working on it,
putting the plus and minus where we're at and see the bottom line what is the total amount and we
are really at. As a start on that what I wanted to do is take up some of the proviso's that were
presented earlier (inaudible) Mr. Furfaro's presentation there were some proviso's and I also see
some proviso's that have been circulated at this point and with that I would like to take on if...
(inaudible).
Mr. Kaneshiro: Yeah... first I want to start with Councilmember Kawahara's
proviso... so everyone have a copy of Councilmember Kawahara's proviso? And... basically it's...
sorry it's not a proviso... it's...
Ms. Kawahara: Yeah.
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Mr. Kaneshiro: Sorry it's not a proviso, it's a text change.
Ms. Kawahara: Yeah text change, I was going to say.
Mr. Kaneshiro: I'm f'inally getting to pronounce the word proviso... and then
I get thrown off...
Ms. Kawahara: And then it stops.
Mr. Kaneshiro: By what we call a text change. Okay sorry about that. Right
and basically what Councilmember Kawahara is saying there's a text change under the part of other
services doing the text and video streaming and she wanted to add that under that seventy-nine
thousand nine hundred (79,900) goes to regular video streaming and seventy thousand one
hundred (70,100) goes to budget sessions.
(inaudible)
Mr. Kaneshiro: And Council meetings... sorry... Council meetings including
budget sessions... Council meetings including budget sessions... well why don't you explain.
Ms. Kawahara: Yes. Sure... this is just a text change and this remains in
Boards and Commissions, there's no dollar changes...
Mr. Kaneshiro: Correct.
Ms. Kawahara: It's just a clarif'ication of the one hundred fifty
thousand (150,000) that's currently in the line for video streaming, what portion of that is to be used
for Council meetings including budget sessions, so it's mostly a clarif'ication to avoid any kind of
confusion about how much goes to the Council meetings including budget sessions from the video
streaming contract so the total remains the same, it's just a clarif"ication and a breakout of what the
one fifty is being used for.
Mr. Kaneshiro: Okay.
Ms. Kawahara: For everybody's consideration.
Mr. Kaneshiro: Okay. Any comments on that members? Okay I don't...
Ms. Kawahara: Oh and these numbers came from Mr. Isobe office from
Boards and Commissions, so it's a legitimate number.
Mr. Kaneshiro: We're not going to ask the Garden Island? I'm just...
Ms. Kawahara: I know.
Mr. Kaneshiro: I just joking... okay so we all understand it's not going to
change the amount or anything, it's just a text...
Ms. Kawahara: Clarif'ication.
Mr. Kaneshiro: Text... t...e...x...t... change. Okay? With that? Mr. Asing.
Chair Asing: Yes I will be supporting this, I think it's a reasonable change
and actually it's a text change so I will be supporting this.
Ms. Kawahara: Thank you Chair.
Mr. Kaneshiro: Any other comments on this? If not I'll just call for the vote,
all those in favor signify by saying "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Those opposed? None, seeing that... moves on... now we're
getting to the proviso's and I guess we have two (2) circulated, one (1) that Mr. Asing will talk about
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and one (1) that Mr. Furfaro will talk about so we both have all those circulated? At this point? All
members, we have that? Oh okay... they wanted... staff wanted to take the one (1) with the three (3)
first, Mr. Furfaro's one first if that's okay and he's already gone through it so at this point Mr.
Furfaro, I'll give you the floor.
Mr. Furfaro: Thank you.
Mr. Kaneshiro: To make the presentation on your provisos.
Mr. Furfaro: Thank you. First of all I want to say that the comments
related to these provisos are also a reflection of some of the challenges I think we have in the near
future, many of you have been following the news today. And this week the fact of the matter is
Iceland on a global picture, Iceland has recently declared bankruptcy. We have Greece on the
horizon and those European members of the G7 have in fact indicated that they have put substantial
money into the Euro today, it strengthen it especially for some of those Southern Mediterranean
counties such as Portugal, Greece, Spain... the fact of the matter is they are putting in funds to
strengthen the Euro but you know all global monetary divisions of money is in fact impacted in
various areas to the point that it's all interwoven with various money markets and stock exchanges
and it's another tough indication that's going on in the World today, although they have attributed to
a thousand point fall in the market, about seven hundred points of it was related to the mechanisms
that somebody over pressed on some sales records. The reality is at least three hundred of that was
related to the concerns of the European money methodology. As soon as they put in money, the
market jumped four hundred points in one (1) day but it is something that we should be concerned
with as credit gets tighter and so I put these provisions together to give some accounting ability to
our individual department heads to be able to manage their department's a little bit more, at the
same time expecting a little more regarding our reserves in the future, in the near future. So the
first one really deals with Departments having management of their funds but having significant
funds made available to them by impressive controls would allow them to come to the Council on any
savings that they might have to make a hiring or a filh'ng of a position that might be dollar funded
now as long as they can report to the Council, the net... action to filling a position. Item number two '
(2) holds the Director of Personnel Services a little bit more accountable for a comprehensive
assessment of the counties year to date numbers for the year 2010-2011 in the actual furlough plans
that after six (6) months of the physical review, they would make a summary to us on the impact of
those furloughs, are they resulting in fewer services, are we falling behind in billing collections, all of
those particular things need to be evaluated in six (6) months as it relates to the furlough and I
think we've talked a lot about that today. And then of course the third (3=d) item here is, I would like
after the six (6) months in the fiscal year, I would like the Director of Finance to submit to the
Council for consideration a draft policy that addresses the utilization of budgetary reserves, in other
words make it as transparent as we possibly can. Fact of the matter is, you saw... it took us through
a period of about three (3) months to reconcile all those emergency approvals we had taking from the
surplus in the year for the year. And as I showed in my earlier presentation I would like to indicate
that if we earmarked two percent (2%) of our surplus for the purposes of emergency spending or
things that might be mandated to us-that we would have a pulse almost immediately as that fund
reduces itself and this would be a requirement that I would ask of the Finance Department to submit
to us a draft policy on how we keep track of those emergency funds, earmarked as a contingency in
the year for the year. And so I think my provisos are being circulated for your review but that's the
heart of it.
Mr. Kaneshiro: Members any comments or questions in regards to three (3)
parts of the proviso that Jay presented and circulated before you? Mr. Bynum, go ahead.
Mr. Bynum: I just I'm going to support all three (3) of these and I yeah I
think it's a... I lost my thought for a second but it will come to me in two (2) seconds. I think it's wise
of us given this year that we take a really thorough re-examination of the choices we're making now
based on... and you know, this isn't a criticism we have to based it on our hopes and our expectations
and some estimates of what fund balances will be and what you know how we'll end up to fiscal year
because we don't know that yet so I think these... particularly given these times, and any time would
be a good idea but particularly this year, they are important.
Mr. Kaneshiro: Okay. Any other comments or questions or discussions on
this at this point? Councilmember Kawahara.
Ms. Kawahara: Thank you Budget Chair. I support... definitely support
number two (2) and three (3) of the provisos, I think it's a brilliant idea to be able to come back to
this in six (6) months and to assess the impacts and see what the financial condition is of the county
44
• B•GET DECISION-MAKING
MAY 10, 2010
Page 45
and whether the projective savings are realized, so thank you very much for having that and putting
it into text. Also I am very interested in seeing how, how... in having some kind of policy that
addresses utilization of budgetary reserves because I was looking at the recommended budget
practices, I was reading it so I know you're very familiar with it, but it does... it talks about
stabilization funds, particularly when you're dealing with funds that are obviously move up and
down, unpredictable revenues so I just had a question... two (2) and three (3) definitely support...
Mr. Furfaro: And mandates we could get a mandate to do something from
the State and not have a reserve so.
Ms. Kawahara Okay. So number one (1) was the only one I had a question
on for Councilmember Furfaro and I might just... so they could hire for one (1)... their dollar funded
positions if they show that its justif"ied and this is for fiscal year ten (10) to eleven (11), so but this
would be permanent hires, yeah?
Mr. Furfaro: Yeah they would make that presentation in front of the
Council, yes.
Ms. Kawahara: Okay. So would the Council have any say or they just present
it and the Mayor shall determine?
Mr. Furfaro: No. This is a confirmation of a change in the budget to the
Council...
Ms. Kawahara: Okay. .
Mr. Furfaro: The idea here is to give each Department head a little bit
more responsibility for their actual financial picture and that if they do well to control cost, within
three (3) to four (4) months but have a good rationale on a position that they want to fill, they can do
both in a presentation to us. How they arrived at the savings, and why they need to fill a dollar
funded position.
Ms. Kawahara: Okay so it does come through the Council to be approve as a
budget, as a money bill or whatever right? Okay. I probably going to support this I just don't know
how it fits in with furloughs, yeah? And I think that's the part that I'm having a hard time...
Mr. Furfaro: Well yeah...
Ms. Kawahara: Putting it in...
Mr. Furfaro: The dollars funded positions aren't reflected in the
furloughs...
Ms. Kawahara: Yeah.
Mr. Furfaro: Right now, there just left blanket... vacant with the dollar
in them.
Ms. Kawahara: Because... so if people are having furloughs, that'll be part of
the justif'ication left to come up and say furlough... we are furloughing people but I want to add a
position? That would be part of their justif'ication?
Mr. Furfaro: Again this is targeted only at the one dollar ($1.00) positions.
Mr. Kaneshiro: Correct. Correct.
Ms. Kawahara: And it's not Council's approval?
Mr. Furfaro: Section 7.05C makes them present to us...
Mr. Kaneshiro: Of the Kaua`i County Charter.
Mr. Furfaro: Am I correct.
Mr. Kaneshiro: They inform us.
45
• BOGET DECISION-MAKING
MAY 10, 2010 '
Page 46
Mr. Furfaro: Only if there's no money? Is that?
Mr. Karieshiro: No. They wi]1 inform us of this move, in other words it will
come before us, tell us that section allows them to move ahead, to go ahead, they can find the
funding from... throughout the Department, if they go down couple months, they find that they have
some money left because some positions here, some wasn't used and so forth, they can go ahead and
fill that position and when they do so they need to inform us.
Mr. Furfaro: Yeah that's what I'm saying...
Mr. Kaneshiro: (inaudible).
Mr. Furfaro: Okay we're saying the same. thing.
Ms. Kawahara: Okay, okay.... Just inform then?
Mr. Kaneshiro: Yes.
Mr. Furfaro: Yes.
Mr. Kaneshiro: Okay. Okay? Are we clear on that?
Mr. Furfaro: If I am correct, you are okay with two (2)?
Ms. Kawahara: Oh yes.
Mr. Furfaro: And three (3) right? And as you can see, each of these
sections puts somebody else accountable to do it.
Ms. Kawahara: Yes and I might remain silent on one (1) because I'm not sure
about it.
Mr. Furfaro: Okay that's your choice.
Mr. Kaneshiro: Okay any other questions on the three (3) provisos before us?
If not, I'm going to take a vote on all three (3). Oh Mr. Chair.
Chair Asing: Yeah I'll... I think these are excellent ideas and I will be
supporting it, thank you.
Mr. Furfaro: Thank you.
Mr. Kaneshiro: Okay any further comments, if not I'm going to take a vote on
all three (3), all those in favor signify by saying "aye."
Councilmembers: Aye.
Mr. Kaneshiro: Any opposed? Hearing none, we also one (1) more text,
(t)(e)(x)(t), change and it's in regards to CIP budget, at this time Mr. Chair did point this out earlier
under the Special Trust Fund for Parks and Playgrounds on the Kawaihau District on the parks
improvements and equipment including soccer and other (inaudible), he wanted to add in that dog
park improvements which include fencing so it's again text change. Am I correct Mr. Chair?
Chair Asing: Yes and it's intended to do the dog park at the Wailua Park.
I should have brought it with me but I have a drawing that was done by the Parks Department on
exactly what they're going to do, they're going to split it up into both large and small animals in the
park so that's the reason for this text change.
Mr. Kaneshiro: Okay.
Chair Asing: Thank you.
Mr. Kaneshiro: So again there's no funding at this point, no additional. It's
just a text change which include that language in there. Okay Mr. Kawakami go ahead.
46
. • • -
BUDGET DECISION-MAKING
MAY 10, 2010
Page 47
Mr. Kawakami: Just a point, I'm going to support it but you know, if history
kind of serves it's... this dog park was actually in either or kind of situation... either you had dogs on
the bike path or you had dog parks?
Chair Asing: No.
Mr. Kaneshiro: In addition.
Mr. Kawakami: Oh it was always in addition?
Mr. Kaneshiro: Yes.
Mr. Kawakami: It was never either or? Mr. Kaneshiro: We did a Reso... that's correct.
Mr. Kawakami: Well eventually I would hope that we would try to engage the
Westside community to see if they have a want or need for such a facility also...
Mr. Kaneshiro: Yes.
Mr. Kawakami: Because when you look at it, Kawaihau District has path,
we're going to put a dog park, you go to Lihu`e you have the Humane Society Dog Park, so at some
point in time we should be engaging yeah... our Westside communities.
Mr. Furfaro: Agree.
Mr. Kaneshiro: Very good point.
Mr. Furfaro: Very good.
Chair Asing: Let me...
Mr. Kaneshiro: Go ahead Mr. Chair.
Chair Asing: Let me answer that first... first of all I totally agree with you,
you are right. I think second you need to start some place and that's really what it is, so it's a start
one area and then with the idea of moving into other areas of the community also, so this is the start
of a long plan, thank you.
Mr. Kaneshiro: Mr. Bynum, go ahead.
Mr. Bynum: Yeah I'm going to support this and I just want to point out the
Chair Asing authored legislation that established and allowed the framework for dog parks in any
community and I concur with Councilmember Kawakami that you know this is a type of facility that
more and more communities are involved with and I concur that we should look at the Westside and
also the North Shore, if there are those opportunities and Wailua made a lot of sense to a lot of
people because you know it's an intact area that seemed suitable without having to acquire land or
do a lot of additional expenses and if I understand this proviso it just allows an existing funding
source to be used for this purpose.
Mr. Kaneshiro: Correct.
Mr. Bynum: And I'm glad to hear that the Parks Department is back on
board with... because there was you know some clear quote from the Administration several months
ago that they had no plans and so now they do and I think that's a good thing.
Mr. Kaneshiro: Okay any further discussions on this? Councilmember
Kawahara go ahead.
Ms. Kawahara: I wanted to thank Councilmember Kawakami for clarifying
that it wasn't an either or proposition...
Mr. Furfaro: Never was.
47
• #GET DECISION-MAKING
MAY 10, 2010 '
Page 48
Ms. Kawahara: Yeah, thank you. I wasn't sure because that was before.
, Thank you so much.
Mr. Kaneshiro: Okay with that, I'll call for the vote, all those in favor?
Councilmembers: Aye.
Mr. Kaneshiro: Any no's? At this time I want to take a recess and the
reason for the recess is because they still got to put all the items together show where we're at, the
total dollar amounts, take about a ten (10) to fifteen (15) minute recess and then you know.
Mr. Furfaro: Before we do Mr. Chair, isn't this it... If it is... I would simple
suggest that we adjust the unappropriated surplus by twenty-four thousand two hundred
(inaudible)...
Mr. Kaneshiro: Well. We... I want to be sure...
Mr. Furfaro: Very good, I got it.
Mr. Kaneshiro: That we... give them the time, remember we had some
numbers that were a little different and we moved on so you know, let's take another ten (10),
fifteen (15) minutes, make some corrections to be sure and we can look where the plus and
minus are.
Chair Asing: Yes.
Mr. Furfaro: I think that's a good plan... .
Chair Asing: Okay. Yes I want to concur with the Chair, you know, like I
said I've been through this many, many times and when you work under these conditions, you put
staff in a very, very difficult situation and so what will happen now is staff will go back and take
these numbers and do it again, and do it again, and do it again...
Mr. Furfaro: I'm just... I've done it only eight (8) times.
Chair Asing: Thank you.
Mr. Kaneshiro: We're only talking about ten (10) or fifteen (15) minutes and
staff can let us know as soon as their ready, with that we're in recess.
There being no objections, the Committee recessed.
The Committee reconvened and proceeded as follows:
Mr. Kaneshiro: Budget session is now called back to order. As our staff has
passed out before you are the numbers after the plus and the minus on the discussions that we've
had throughout this budget session today and it shows that we are approximately twenty-four
thousand two hundred siYty-six dollars ($24,266.00) in the hole if you want to put it that way... or in
red. That we need to find some means, if we're going to go ahead... like I noticed we approve all the
items as such, we need to find twenty-four thousand two sux-six more dollars.
Mr. Furfaro: May I recommend that we take the twenty-four two six, six
from the appropriate surplus and get us to a point where its zero, zero and the only other comment I
would make is, since the proviso past the first thing we looked at in December is the Police rate
in overtime.
Mr. Kaneshiro: Okay. That's fine. Any additional comments with that
members?
Mr. Bynum: Works for me.
Mr. Kaneshiro: It will work for... all of us then? So.
Chair Asing: I totally agree.
48
B•GET DECISION-MAHING
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Page 49
Mr. Kaneshiro: Okay with that, all those in favor signify by saying "aye:"
Councilmembers: Aye.
Mr. Kaneshiro: Any no's? The motion carried. It looks like we're done for
today, we wrapped up what we needed to do, the only thing... let me inform you that on the
nineteenth (19th) of May, we will have a Special Council Meeting at 8:30 in the morxung for all of this
that has taken place and we will have public hearing... (inaudible) the Mayor's modif'ication and we
will have other meetings there and Real Property Tax Reso's and so forth and on the twenty-sixth
(26th) we will have some Public Hearing and so forth going on, on that to right? Yeah. Committee
Meetings... yeah... with the budget and on the following.... the twenty-six is when we will work on
and make the report of the approved budget, final and approved budget with most likely will stand
at the way we are right now, so members... meet with staff because usually we do have a budget
message and each and every one of you can contribute to the budget message when we come to the
final meeting on the 26th and at this time I just want to thank all my Committee members and
specif'ically the staff, I mean everybody works so hard on this budget session you know, mother's
were here even though Mother's Day was around the corner, father's were here even though
Mother's Day was here... and they should have been home cooking and doing stuff for their mothers
but it went all the way to yesterday so I just wanted to thank them all and I thank my Committee
members again for really working hard and doing a good job on this budget at this time but we'll be
able to have much more comments when we... because we still got the final one and that's the time
but for up to now I just want to thank each and every one of you with that...
Mr. Furfaro: And I think I want to say on behalf of the members, on behalf
of the members, thank you very much for your leadership in this process. I know there were some
trying moments and there were some difficult discussions but we got to a place where we're
comfortable till we revisit in December.
Mr. Kaneshiro: And that's a really good comprise, I've seen the proviso's, I'm
still knocked on that word, I don't know why... I've seen you know... that we've been able to do that
and we've been able to review some of the concerns that came up. So what I really want my
Committee members to know that what we wrap up today, will be the final budget that is presented
because we need to post it as such, we need to post the amendments, so is everybody clear on that?
So at this time, this session is now... oh Mr. Chair, before I adjourn this session.
Chair Asing: Yes. I just want to take this opportunity to thank you Chair
for your leadership in accomplishing the goal of getting the budget done it was not an easy task.
There's many things that was done prior to, during the process and I just want to thank you and also
I want to thank all Councilmembers, even though I disagreed with some views, it is part of the
process and we end up voting the way we feel, it should go but I want to commend everyone for their
hard work and diligence in working on the budget and this process again is a good process, it's a fair
one and everybody gets to participate so I wanted to thank everyone for their hard work and
especially the staff for the extra, extra effort, time that they put into it, I know I was here, I saw
them work late into the nights, nights I saying... working through the budget process so I just
wanted to thank everyone.
Mr. Kaneshiro: With that, Mr. Chang? -
Mr. Chang: Thank you, I also want to thank you Budget Chair for guiding
us, this has been my second year sitting in on the budget so I really appreciate you taking the phone
calls and guiding us down the roads and of course we to all eco that the fact that the staff did a
tremendous job and want to thank them for preparing us for this budget and if I maybe can have one
(1) minute for personal privilege?
Mr. Kaneshiro: Well let me see if anybody else has anymore comments before
I give you personal privilege... just you know... for me... yeah go ahead and make the...
Mr. Chang: Oh okay I just wanted to thank the Garden Island Newspaper
because they were here specif'ically Mr. Richard Stein back there from all of our budget days, he
never knew when he was going to start, when he was going to end and it's very appropriate that we
acknowledge him because today is his birthday so let everybody out there know that today is Richard
Stein's birthday and I'm probably sure that he had one (1) or two (2) places that was a little bit
ticked and hanging out with us so thank you very much to all of you folks for coming by and keeping
the community up rest and thank you to Randy and Friends too, thank you very much Chair.
49
• #GET DECISION-MAKING
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Page 50
Mr. Kaneshiro: And again I want to thank all of you again because at the end,
this is for the people of Kaua`i the budget we work on whether it's for today, tomorrow, whatever...
it's always we're looking into the future and I want to credit every single one of our members, my
Committee members, you know, that have worked with that in concern with that in the back of their
mind. And again we said it all about the staff so at this time, I know as we move through this
process we'll have an opportunity again to speak on the budget when we go through the final budget
hearing and approval, so with that at this time the budget session is now adjourned.
There being no further discussion, the FY 2010-2011 Budget Decision-Making meeting
adjourned at 4:55 p.m. •
Respec y ubmitted,
Aida Okasaki ~
~4~~
Wilma Akiona
&Darrellyne Simao
` Laurie Chow
50
• ~
May 10, 2010
For Consideration - Text Change To The CIP Budget FY 10-11
1. Add text to an existing item.
Special Trust Fund For Parks & Playgrounds
Kawaihau District:
Park Improvements & Equipment
(Including Soccer And Other Equipment / Dog Park, Improvements/ Fencing)
I
~ •
Mav 10. 2010
For Consideration Provisio Language To Be Added To The Operating Budget FY 10-11
1. A new Section 17, and remaining Sections to be renumbered appropriately.
Section 17. Appropriations or authorizations for positions in this Ordinance shall ~
constitute establishment of such positions. Departments having sufficient funds may '
hire dollar-funded positions provided that the Council is informed of the hiring of such
positions. Pursuant to Sec 7.05(c) of the Kaua'i County Charter, the Mayor shall
provide a monthly report to the Council of any actions related to the creation or
abolishment of positions.
2. To be added as a new Section and other Sections renumbered appropriately.
The Director of Finance in consultation with the Director of Personnel Services shall
conduct a comprehensive assessment of the County's FY 10-11 Furlough Plan after the
first six (6) months of the fiscal year. The assessment shall include, but not be limited
to the County's financial condition and whether the projected savings (resulting from
the employee furloughs) is being realized, whether County services /programs have
been adversely impacted, a recommendation on whether employee furloughs should
continue, etc. The assessment shall also include, if necessary, any recommendations
and/or adjustments that need to be made to the County's Furlough Plan.
3. To be added as a new Section and other Sections renumbered appropriately.
After the first six (6) months of the fiscal year, the Director of Finance shall submit to
the Council for consideration, a"Draft Policy" that addresses the utilization of
budgetaryreserves which would-be included in future budgets. ~r ( )
May 10, 2010
For Consideration:
Text Change Only
#001-0104-512.30-00 Other Services
Text
[Video Streaming $150,000]
Video Streaming $79,900
~ Council Meetings, including
budget sessions $70,100
~I~
MAY 7TH SUPPLEMENTAL: $ 147,027,226 ~
V~ 0. 02 %
RUN TOTALS ~ $4,544,918 $4,569,184 $24,266 -4 RED DENOTES "SURPLUS"
DEPARTMENT / ITEM MAY 7TH MAY 10TH A NOTES
COUNCIL/CLERK'S OFFICE:
- Auto allowance & other expenses $42,000 $29,400 ($12, 600 Decrease by $150/mo per person; $500 to $350/mo
- Special projects; consultant services $0 $20,000 $20,000 CZO U date assistance
- Equipment $0 $500,000 $500,000 Add text: "FF&E-Historic Coun Buildin "
COUNCIUAUDITOR'S OFFICE:
- Consultant services $470,000 $535,000 $65,000 •
CIP:
- General Fund project contingenc $728,592 $163,592 ($565,000
POLICE:
- Regular Overtime $2,000,000 $1,900,000 ($100,000
ECONOMIC DEVELOPMENT:
- Econ Dev. Plan implementation/KEDB $533,887 $553,887 $20,000 Increase from $40,916 to $60,916
- YWCA Famil Violence Shelter $25,615 $37,668 $12,053
- YWCA Sexual Assault Treatment Program $37,856 $55,669 $17,813
PUBLIC WORKS-SOLID WASTE DIV:
- Recycling Specialist to Recycling Coordinator $37,968 $56,968 $19,000
MAYOR'S OFFICE:
- S ecial pro'ects; KPAA $28,000 $37,000 $9,000
FINANCE:
- Special Projects; Kaua'i Humane Socie $623,000 $655,000 $32,000
PARKS & RECREATION:
- Head Start summer program $18,000 $25,000 $7,000
s .
. .
Memo
To: Chaiman Kaipo Asing & Budget air Daryl Kaneshiro
From: Vice Chair, Jay Furfaro LiKAFT
Date: May 3, 2010 Re: Plus and Minus Report R commendations
Aloha Gentlemen,
After having the appropriate time to review all of the budgets I wanted to share my thinking with you in advance of our
plus and minus meeting next Monday and Tuesday as to where I believe we stand. This summary will start with a brief
commentary on revenue and then focus on adding into the budget by priority items in public safety and wellbeing. I also
want to share that I do not think we need to budget the entire $900,000 for a newly prepared general plan update. I think
it is logical fhat we could present the cost of the general plan update over two budgeting years. Thus reducing the cash
flow projections but without reducing the scope of the plan. The following list is areas that I think we have some savings
to use in revisiting certain cost items. I would like to review the budget furloughs in December as a budget proviso.
Cash Adjustments
• Benefit & Health Fund Variance Fire & Police $404,442.00
• Budgeted Variances Generated on Benefits & Health Fund (All Other Departments) $1,406,610.00
• General Plan Update Savings Based on a 2 Year Budgeted Plan $400,000.00
Starting in 3`d Qtr 2010/11 Finished in 2"d Qtr 2011/12
• Potential Surplus After the Funding of a 2% Reserve $496,593.00
In the Year for the Year and a 15% county Treasury Reserve
• Forecasted Savings from Council Members Reimbursement Accounts ($1,050/month) $12,600.00
• Five Percent Adjustment to the Police DepartmenYs Budgeted Overtime $100 000.00
Subtotal $1,009,193.00
Additional Expenses
• Five Fire Fighter Trainees Including Benefits at $69,743 per Trainee ($348,715.00) TBA
• Police 4eII block and dispatch operators $127,000.00
• Prosecuting Attomey Personnel, Replenishing Lost Grants, Plus clerical $186,756.00
• County Attorney's Office Staff Upgrades $75,000.00
• Auditors Office Program Auditor Analyst $85,000.00
• Fully Staffed Life Safety Ocean Recreation $159,800.00
• Re-establish Full Service Bus Drivers staffing Transportation $171,505.00
• Wastewater 2417 Staffing $117,132.00
• County Clerk's Office special projects planning $20,000.00
• Solid Waste Position Upgrade from Specialist to Manager $18,000.00
• Kaua'i Planning and Action Alliance $9,000.00
• Humane Society $32,000.00
• Potential funding for head start $8,000.00
Subtotals $1,009,193.00
1
,
TOTAL UNRESERVED/UNDESIGNATED @ 06/30/09 41,918,610
DESIGNATED RESERVE @ 06/30/09 9,074,550
UNASSIGNED RESERVE @ 06/30/09 32,844,060
7/1/09 Appropriation(DESIGNATED RESERVE) (9,074,550)
Approved Budget Appropriations * (1,446,111) .
General Fund Increase from Bond Issue** 7,353,765
Estimated Revenue over Expenditures in FY 10 5,000,000
TOTAL ESTIMATED U N RESERVED/U N DESIGNATED @ 06/30/10 43,751,714
DESIGNATED RESERVE @ 06/30/10 15,490,685
ESTIMATED UNASSIGNED RESERVE @ 06/30/10 28,261,029
7/1/10 Appropriation(DESIGNATED RESERVE) (15,490,685)
Estimated UNASSIGNED RESERVE @ 7/1/10 28,261,029
FY 11 Operating Budget 147,027,226
Ratio of UNASSIGNED to FY 11 Budget 19.22%
NET GAIN/(LOSS) OF UNASSIGNED RESERVE @ FYE FY 10 vs. FY 09 (4,583,031)
* Approved Budget Appropriations after Original Budget Ordinance
FY 2007 $ 1,358,446
FY 2008 $ 6,640,782
FY 2009 $ 3,061,856
FY 2010 $ 1,446,111
Total $ 12,507,195
Average $ 3,126,799
This amount.is a non-recurring source of revenue. If this amount was not included in the calculation,
the County's Unassigned Funds to Budget Expenditures would be 13.97%. Further, the County would
have lossed $12,298,796 in unassiged reserves at FYE 10 vs FYE 09.
If we consider the "average" annual budget appropriations made, the ratio of unassigned reserve to
operating budget would be: 16.43%
County of Kaua`i
6-Year Trend Analysis and 6/30/10 Estimate Value of Net Taxable Property Value (In Thousands)
$25,000,000
$20,000,000
$19,291,604
$16,837,676 $18,935,077 $16,758,437
$15,000,000
$13,754,378 •
$10,000,000 9,201,193
$5,000,000 $7,381,017
$0
6/30/04 6/30/05 6/30/06 6/30/07 6/30/08 6/30/09 6/30/10
VALUE OF NETTAXABLE PROPERTY VALUE FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 Estimate ~
County of Kaua'i $ 7,381,017 $ 9,201,193 $ 13,754,378 $ 16,837,676 $ 19,291,604 $ 18,935,077 $ 16,758,437
$ Increase /(Decrease) $ 1,820,176 $ 4,553,185 $ 3,083,298 $ 2,453,928 $ (356,527) $ (2,176,640)
% Increase /(Decrease) 25% 49% 22% 15% -2% -11%
Note:
(a) Value of Net Taxable Property Value is calculated as the Gross Assessed Value less Exemptions.
(b) Property values have declined $2.18 BILLION or 11.5% between FY 10 and FY 11. Since FY 09, the decline totalled $2.53 BILLION or 13.1%.
County of Kaua'i
6-Year Trend Analysis and 6/30/10 Estimate
County of Kaua'i Operating Budget
S180,000,000
$160,000,000
$140,000,000 $157,913,697 $154,092,065 $147,027,226
, ,
$120,000,000 131,211570
$122,181,014
$100,000,000 ~
$102,524,645
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
6/30/04 6/30/05 6/30/06 6/30/07 6/30/08 6/30/09 6/30/10
(Estimated)
7/1/2004thru 7/1/2005thru 7/1/2006thru 7/1/2007thru 7/1/2008 thru 7/1/2009 thru 7/1/2010thru
ORIGINAL OPERATING BUDGETS 6 30 2005 6 30 2006 6 30 2007 6 30 2008 6 30 2009 6 30 2010 6 30 2011
County of Kaua'i $ 102,524,645 $ 122,181,014 $ 131,211,570 $ 148,692,394 $ 157,913,697 $ 154,092,065 $ 147,027,226 •
$ Increase /(Decrease) $ 19,656,369 $ 9,030,556 $ 17,480,824 $ 9,221,303 $ (3,821,632) $ (7,064,839)
% Increase /(Decrease) 19% 7% 13% 6% -2% -5%
Ratio of Fund Balance to Operating Budget 10% 10% 16% 22% 22% 21% 19%
Note:
(a) While Property Values have gone down 13.1% over the last two years, the County budget has been reduced 6.9% over the same period.
County of Kaua'i
6-Year Trend Analysis and 6/30/10 Estimate
General Fund Balance _
$40,000,000
$35,000,000
$35,237,383 32,844,060
$30,000,000 32 349 830
$28,261,029
$25,000,000
$20,000,000 $20,832,604
$15,000,000 •
$10,000,000 11,871,178
$10,353,580
$5,000,000
$0
6/30/04 6/30/05 6/30/06 6/30/07 6/30/08 6/30/09 6/30/10
(Estimated)
CAFR CAFR CAFR CAFR CAFR CAFR CAFR
GENERAL FUND RESERVES 6 30 2004 6 30 2005 6 30 2006 6 30 2007 6 30 2008 6 30 2009 6 30 2010
County of Kaua'i General Fund Balance $ 10,353,580 $ 11,871,178 $ 20,832,604 $ 32,349,830 $ 35,237,383 $ 32,844,060 $ 28,261,029 ~
Note: GASB 54 implemented - 711109 BudgetAppropriation classified as Committed Fund Balance $ 9,074,550 $ 15,490,685
Comparison of Counties in the State of Hawai'i
General Fund Unreserved / Undesignated Balances
Estimated
CAFR CAFR CAFR CAFR CAFR CAFR CAFR
GENERAL FUND RESERVES 6 30 2004 6 30 2005 6 30 2006 6 30 2007 6 30 2008 6 30 2009 6 30 2010
County of Kaua`i General Fund 10,353,580 11,871,178 20,832,604 32,349,830 35,237,383 32,844,060 28,261,029
Note: GASB 54 /mplemenied - 711109 8udget Appropriation classified as Committed Fund Balance 9,074,550 15,490,685
•
$ Increase /(Decrease) 1,517,598 8,961,426 11,517,226 2,887,553 (2,393,323) (4,583,031)
% Increase /(Decrease) 15% 75% 55% 9% -7% -14%
County of Hawai'i General Fund 12,270,870 15,664,272 23,446,072 28,950,668 31,401,745 44,603,975
$ Increase /(Decrease) 3,393,402 7,781,800 5,504,596 2,451,077 13,202,230
% Increase /(Decrease) 28% 50% 23% 8% 42%
J
County of Maui General Fund 17,843,884 31,214,211 52,766,151 64,575,755 55,873,970 49,273,362 ~
$ Increase /(Decrease) 13,370,327 21,551,940 11,809,604 (8,701,785) (6,600,608)
% Increase /(Decrease) 75% 69% 22% -13% -12%
City and County of Honolulu
General Fund 41,479,000 57,364,000 76,604,000 128,035,000 107,281,000 67,824,000 ,
$ Increase /(Decrease) 15,885,000 19,240,000 51,431,000 (20,754,000) (39,457,000)
% Increase /(Decrease) 38% 34% 67% -16% -37%
Plus/Minus for Consideration
2010-2011
Budget Proposed
Program Proposal Budget Amount Total Difference Dept• Acct. #
Auto allowance & other expenses - Council $42,000 $29,400 -$12,600 Clerk 001-0201-511.05-08
Special Projects, Consultant Services - Council (add text
"CZO Update Assistance) $28,000 $48,000 $20,000 Clerk 001-0201-511.32-00
Equipment (add text "FF&E-Historic County Building) $6,000 $506,000 $500,000 Clerk 001-0201-8511.89-01 •
Consultant Services - Auditor $470,000 $535,000 $65,000 Auditor 001-0203-511.32-00
Regular Overtime - Police $2,000,000 $1,900,000 -$100,000 Police 001-1001-551.02-01
Other Services-Economic Plan Implementation/KEDB $533,887 $553,887 $20,000 OED 001-0901-512.30-00
Position - Change Recycling Specialist I to Recycling
Coordinator and increase salary $37,968 $56,968 $19,000 Solid Wast 208-2033-641.01-01
Special Projects - KPAA $28,000 $37,000 $9,000 Mayor 001-0501-512.35-00
Special Projects - Kaua`i Humane Society $623,000 $655,000 $32,000 Finance 001-0501-512.35-00
CIP General Fund Project contingency $728,592 $163,592 -$565,000 CIP
Restore funding for DC Lobbyist 0 $100,000 $100,000 Mayor 001-0101-512.35-00
YWCA Family Violence Shelter $25,615 $37,668 $121053 OED 001-0901-512.30-00
YWCA Sexual Assault Treatment Program $37,856 $55,669 $17,813 OED 001-0901-512.30-00
Restore funding for Head Start Summer Program 18,000 $25,000 $7,000 Parks 001-3021-661.35-00
One furlough day (estimation) ($4,200,000) ($1,726,315) $2,473,685 001-0101-512.01-01 ~
Extending Bus Service to include Sunday service $230,152
TOTAL $2,828,103
• •
OF
cCOUNTY COUNCIL 1906
OFFICE OF THE COUNTY CLERK
BILL "KAIPO" ASING, CHAIR Council Services Division
JAY FURFARO, VICE CHAIR Elections Division
TIM BYNUM ~
Records Division
DICKIE CHANG ~qPETER A. NAKAMURA, County Clerk
DARYL W. KANESHIRO "pT TH66A2D ~ 4.
LANI T. KAWAHARA ~ oF ~ Telephone: (808) 241-4188
DEREK S. K. KAWAKAMI 3371-A WILCOX ROAD Facsimile: (808) 241-6349
LIHU`E, KAUA`I, HAWAI`I 96766
E-mail: cokcouncil@kauai.gov
May 7, 2010
TO: All Councilmember q
FR,OM: Staff
RE: BUDGET COMPAR,ISON - FY 2010-2011
March 15, 2010 Administrative Budget Submittal vs. May 7, 2010
Mayor's Budget Modification
Attached for your information and use during the budget "Decision Making
Sessions" are comparisons (Operating and CIP budgets) between the MarGh 15,
2010 Administrative Budget Submittal vs. the May 7, 2010 Budget Modification.
Should you have any questions, please see Jade, Stephanie or Yvette.
Attachment. .
copy: Records Division
Budget File Budget Staff
AN EQUAL OPPORTUNITY EMPLOYER
>
--------- - ------- -
• •
I.REVENUES
REVENUES
General Fund Comparison/Highlights
MAYOR'S MAYOR,'S
3/15/10 5/7/10
' REVIEW SUPPL. Difference % Diff
TAXES
RPT $81,930,931 $81,469,935 ($460,996) -0.56%
Public Service Company Tax $3,900,000 $3,900,000 $0 0.00%
LICENSE AND PERMITS
Street Use $152,805 $152,805 $0 0.00%
Business Licenses $14, 200 $14, 200 $0 0.00%
Non-Business Licenses $1,138,000 $1,138,000 $0 0.00%
REVENUES FROM INVESTMENT
Interest $1,776,000 $1,776,000 $0 0.00%
REVENUES FROM PROPERTY
Rents & Concessions $321,500 $321,500 $0 0.00%
INTER-GOVERNMENTAL REVENUES
PILT $20,000 $20,000 $0 0.00%
State Grant-in-Aid $12,000,000 $12,000,000 $0 0.00%
Federal Grants--Civil Defense $63,000 $63,000 $0 0.00%
Other State Grants $5,000 $5,000 $0 0.00%
CHARGES FOR CURRENT SERVICES
General Government $225,650 $225,650 $0 0.00%
Safety $1,695,550 $1,695,550 $0 0.00%
Recreation $117,000 $117,000 $0 0.00%
Others $150,000 $150,000 $0 0.00%
OTHER REVENUES
Miscellaneous $191, 500 $191,500 $0 0.00%
Unappropriated Surplus $14,386,057 $15,490,685 $1,104,628 7.68%
Contribution to Self-Insurance Fund ($250,000) ($250,000) $0 0.00%
Contribution to Public Access Fund ($409,700) ($407,350) $2,350 -0.57%
Contribution to Debt Service Charges ($7,028,243) ($7,078,134) ($49,891) 0.71%
Contribution from General Fund ($9,204,551) ($9,733,808) ($529,257) 5.75%
Contribution to/from CIP ($5,000,000) ($5,000,000) $0 0.00%
TOTAL REVENLTE - GENERAL FUND $96,194,699 $96,261,533 $66,834 0.07%
Page 1
• •
REVENUES
Highwav Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Public Utility Franchise Tax $3,350,000 $3,350,000 $0 0.00%
Fuel Tax $3,800,000 $3,800,000 $0 0.00%
Street Use $3,860,000 $3,860,000 $0 0.00%
Interest $75,000 $75,000 $0 0.00%
Other State Grants $35,000 $35,000 $0 0.00%
Unappropriated Surplus $2,305,455 $2,402,651 $97,196 4.22%
Contribution to CIP ($2,000,000) ($2,000,000) ($975,000) 0.00%
TOTAL REVENLTE - HIGHWAY FUND $11,425,455 $11,522,651 ($877,804) 0.85%
REVENUES
Sewer Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Interest $50,000 $50,000 $0 0.00%
Sanitation $6,417,000 $6,417,000 $0 0.00%
Unappropriated Surplus $2,813,276 $2,813,276 $0 0.00%
TOTAL REVENLTE - SEWER FUND $9,280,276 $9,280,276 $0 0.00%
REVENUES
Golf Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Rents & Concessions $305,547 $305,547 $0 0.000/6
Recreation $1,257,540 $1,257,540 $0 0.00%
Contribution from General Fund $589,812 $589,812 $0 0.00%
Unappropriated Surplus $0 $0 $0 0.00%
TOTAL REVENTJE - GOLF FUND $2,152,899 $2,152,899 $0 0.00%
Page 2
• •
REVENUES
Liquor Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Business Licenses $1,034,875 $1,034,875 $0 0.00%
Interest $1,000 $1,000 $0 0.00%
Unappropriated Surplus $83,545 $83,545 $0 0.00%
TOTAL REVENL7E - LIQUOR FUND $1,119, 420 $1,119, 420 $0 0.00%
REVENUES
Debt Service Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Contribution for Debt Service Charges $7,028,243 $7,078,134 $49,891 0.71%
TOTAL REVENUE - DEBT SERVICE FUND $7,028,243 $7,078,134 $49,891 0.71%
REVENUES
Self-Insurance Fund Comnarison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Contribution to Self-Insurance $250,000 $250,000 $0 0.00%
TOTAL REVENUE - SELF-INSURANCE FUND $250,000 $250,000 $0 0.00%
REVENUES
Public Access Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Contribution for Public Access Fund $453,190 $407,350 ($45,840) -10.11%
TOTAL REVENUE - PUBLIC ACCESS FUND $409,700 $407,350 ($45,840) -0.57%
Page 3
• ~
REVENUES
Solid Waste Disposal Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Rents and Concessions $12,000 $12,000 $0 0.00%
Sanitation $3,034,000 $3,034,000 $0 0.00%
Unappropriated Surplus $0 $0 $0 0.00%
Contribution from General Fund $8,614,739 $9,143,996 $529,257 6.14%
TOTAL REVENUE -
SOLID WASTE DISPOSAL FUND $11,660,739 $12,189,996 $529,257 4.54%
REVENUES
Criminal Assets Forfeiture Fund Comparison/Highlights
MAYOR'S MAYOR'S
3115/10 5/7/10
REVIEW SUPPL. Difference %Diff
Unappropriated Surplus $400,000 $400,000 $0 0.00%
TOTAL REVENUE -
CRIMINAL ASSETS FORFEITURE FUND $400,000 $400,000 $0 0.00%
REVENUES
Beautification Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Street Use $302,660 $302,660 $0 0.00%
Unappropriated Surplus $150,000 $150,000 $0 0.00%
TOTAL REVENUE -
BEAUTIFICATION FUND $452,660 $452,660 $0 0.00%
REVENUES
Housing & Communitv Development Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Other State Grants $428,800 $428,800 $0 0.00%
Miscellaneous Revenue $0 $0 $0 0.00%
Unappropriated Surplus $2,042,243 $2,042,243 $0 0.00%
TOTAL REVENUE -
HOUSING & COMM DEV FUND $2,471,043 $2,471,043 $0 0.00°/a
Page 4
• ~
Housing Revolving Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Miscellaneous Revenue $14,880 $14,880 $0 0.00%
Unappropriated Surplus $1,750,000 $1,750,000 $0 0.00%
TOTAL REVENUE -
HOUSING REVOLVING FUND $1,764,880 $1,764,880 $0 0.00%
REVENUES
Kalepa Housing Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Rents & Concessions $921,365 $921,365 $0 0.00%
Miscelaneous Revenue $1,233 $1,233 $0 0.00%
Unappropriated Surplus $0 $0 $0 0.00%
TOTAL REVENUE -
KALEPA HOUSING FUND $922,598 $922,598 $0 0.00%
REVENUES
Pa`anau Housing Fund Comparison/Highlights
MAYOR'S MAYOR'S
3/15/10 5/7/10
REVIEW SUPPL. Difference %Diff
Rents & Concessions $516,000 $516,000 $0 0.00%
Miscellaneous Revenue $12,000 $12,000 $0 0.00%
Unappropriated Surplus $225,786 $225,786 $0 0.00%
TOTAL REVENUE -
PA.ANAU HOUSING FUND $753,786 $753,786 $0 0.00%
Page 55
. ~
DIFFERENCE
BETWEEN
MAYOR'S MAYOR'S MAYOR'S
Orig. Supp. REVIEW SUPPLEMENTAL REVIEW AND
Pg,# Pg.# 3I15/10 517/10 SUPPLEMENTAL
II. GENERAL FUND EXPENDITURES
DEPARTMENTS
MAYOR'S OFFICE -
2 2 Special Projects - Charter R.eview Commission 3,600 0 (3,600)
2 2 Special Projects - State Lobbyist (moved to Boards & Comm) 40,000 0 (40,000)
2 2 Special Projects - JPO Picnic 800 1,000 200
2 2 Copier 12,000 13,000 1,000
3 4 Controlled Asaets - Small Form Factor PC 1 1,300 1,299
4 4 Controlled Assets - MS Office 2007 0 350 350
4 4 Controlled Assets - UPS Battery 0 100 100
4 4 Controlled Assets - Printer 0 800 800
EQUAL ACCESS
6 6 Training 10,520 10,000 (520)
BOARDS & COMMISSIONS
8 8 Other Servicea - State Lobbyist (from Mayor's Office) 0 40,000 40,000
9 9 Special Projects - Anti DrugPrograms, Training and Events 38,000 31,000 (7,000)
9 9 Airfare, General 2,000 6,000 4,000
9 9 Car Rental & Parking, General 1,000 3,000 2,000
10 10 Boards & Commission Expense 15,000 18,600 3,600
PROSECUTING ATTORNEY
22 22 Salaries - E-64 Deputy Pros. Atty from 314 time to 1/2 time 75,800 50,533 (25,267)
22 22 Salaries - 9093 Law Clerk 10,500 55,000 44,500
22 22 Salaries - New Deputy Prosecuting Attorney 0 80,000 80,000
22 22 Salaries - 2-Day Furlough A Month (128,570) (139,040) (10,470)
22 22 Salaries - New Deputy Prosecuting Attorney 0 1 1
22 22 Salaries - New Law Clerk 0 1 1
22 22 Salaries - New Law Clerk II 0 1 1
22 22 Social Security Contribution 96,170 103,985 7,815
22 23 Health Fund Contribution 100,800 110,100 9,300
22 23 Retirement System Contribution 188,570 203,890 15,320
23 23 Other Post Employment Benefits 301,710 326,225 24,515
FINANCE - ACCOUNTING
29 29 Salaries - 200 Accounting Systems Administrator 99,444 80,000 (19,444)
29 29 Salaries - 2-Day Furlough A Month (67,980) (65,040) 2,940
29 29 Social Security Contribution 94,665 93,650 (1,015)
29 29 Health Fund Contribution 46,700 51,295 4,595
29 29 R.etirement System Contribution 185,615 183,625 (1,990)
30 30 Other Post Employment Benefits 296,990 293,800 (3,190)
FINANCE - IT
34 34 R&M Computers - Sungard Support & Maintenance 160,000 113,000 (47,000)
36 36 Computers and Accessories - High Volume Scanner 0 30,000 30,000
36 36 Computers and Accessoriea -(11) Agency Scanners 0 17,700 17,700
FINANCE - REAL PROPER.TY ASSESSMENT
46 46 Other Services - Proptax Program and Maintenance 200,000 177,000 (23,000)
47 47 Computera and Accessories - Changefindr Software 0 23,000 23,000
FINANCE - PURCHASING
50 51 Salariea - 102 Assistant Chief Procurement Officer 92,928 85,000 (7,928)
50 51 Salaries - 2-Day Furlough A Month (38,215) (37,475) 740
50 51 Social Security Contribution 29,430 28,880 (550)
50 51 Retirement System Contribution 57,710 56,630 (1,080)
50 51 Other Post Employment Benefits 92,330 90,610 (1,720) •
~!J
. ~ ~
DIFFERENCE
BETWEEN
MAYOR'S MAYOR'S MAYOR'S
Orig. Supp. REVIEW SUPPLEMENTAL REVIEW AND
Pg.# Pg.# 3/15/10 5/7110 SUPPLEMENTAL
PERSONNEL SERVICES
55 56 Copier - Copier Rental 5,500 7,020 1,520
POLICE DEPARTMENT
69 70 Salaries - 2-Day Furlough (195,219) (89,840) 105,379 71 72 Social Security Contribution , 345,755 353,815 8,060
71 72 Retirement System Contribution 2,722,725 2,738,530 15,805
72 73 Other Post Employment Benefits 3,465,435 3,490,725 25,290
FIRE DEPARTMENT - OPERATIONS
113 114 Rank For Rank 500,000 125,000 (375,000)
113 114 Social Security Contribution 136,274 130,475 (5,799)
113 114 R.etirement System Contribution 1,851,457 1,797,285 (54,172)
114 115 Other Post Employment Benefits 2,125,500 2,048,250 (77,250)
FIRE DEPARTMENT - WATEft SAFETY
122 123 Salaries - 2-Day Furloughs (159,800) 0 159,800
122 123 Social Security Contributions 133,880 146,105 12,225
122 123 Retirement Contributions 262,500 286,470 23,970
122 123 Other Post Employment Benefits 420,005 458,360 38,355
PUBLIC WORK5 - ENGINEERING
176 ] 35 Salaries - 1429 Civil Engineer VI (trsf fr Hwy Admin.) 0 1 1
136 135 Salaries - 1441 Engineering Suppt Tech III (trsf fr Bldg. Insp 0 42,684 42,684
134 135 Salariea - 2-Day Furlough (68,730) (79,950) (11,220)
134 135 Social Security Contribution 55,225 60,595 5,370
134 135 Health Fund Contribution 49,600 52,571 2,971
134 135 Retirement System Contribution 102,400 118,815 16,415
134 135 Other Post Employment Benefits 163,835 190,105 26,270
PUBLIC WORKS - BUILDING INSPECTIONS
136 177 Salaries - 1426 Civil Engineer (trans£er to Hwy. Admin.) 73,044 0 (73,044)
136 135 Salaries - 1441 Engineering Suppt Tech III (to Eng.) 42,684 0 (42,684)
136 137 Salariea - 2-Day Furlough (114,290) (103,530) 10,760
136 137 Social Security Contribution 87,575 78,185 (9,390)
136 137 Health Fund Contribution 90,640 87,620 (3,020)
136 137 Retirement Syatem Contribution 171,720 153,305 (18,415)
137 138 Other Post Employment Benefits 274,750 245,290 (29,460)
TRANSPORTATION - OPERATIONS
173 174 Salaries - 2-Day Furlough (147,925) (44,685) 103,240
173 174 Social Security Contribution 137,225 145,125 7,900
173 174 Retirement System Contribution 226,315 241,805 15,490
173 174 Other Post Employment Benefits 362,110 386,890 24,780
TOTAL GENERAL FUND 15,137,708 15,204,542 66,834
~
• ~
DIFFERENCE
BETWEEN
MAYOR'S MAYOR'S MAYOR'S
Orig. Supp. REVIEW SUPPLEMENTAL REVIEW AND
Pg.# Pg.# 3/15/10 5/7/10 SUPPLEMENTAL
HIGHWAY FUND
HIGHWAY - ADMINISTRATION
136 177 Salaries - 1426 Civil Engineer (transfer fr Bldg.) 0 73,044 73,044
134 177 Salariea - 1429 Civil Engineer VI (to Engineering) 1 0 (1) -
176 177 Salaries - 2-Day Furlough . (13,430) (20,230) (6,800)
176 177 Social Security Contribution 10,795 15,860 5,065
176 177 Health Fund Contribution 9,895 9,948 53
176 177 R.etirement Syatem Contribution 21,165 31,100 9,935
176 177 Other Post Employment Benefita 33,860 49,760 15,900
TOTAL HIGHWAY FUND 62,286 159,482 97,196
SOLID WASTE FUND
SOLID WASTE DISPOSAL
200 201 Salariea - 1581 SW Workaite Attendant (Kapa`a) 1 36,960 36,959
200 201 Salaries - 1888 SW Worksite Attendant (Hanapepe) 1 36,960 36,959
200 201 Salariea - 2-Day Furlough (121,740) (128,620) (6,880)
201 202 Social Security Contribution 105,135 110,260 5,125
201 202 Health Fund Contribution 137,600 156,204 18,604
201 202 Retirement Syetem Contribution 206,140 216,200 10,060
201 202 Other Post Employment Benefits 329,825 345,915 16,090
204 205 Controlled Assets - 1 Deak, 1 Chair 0 1,000 1,000
SOLID WA5TE COLLECTIONS
206 207 Salaries - 2-Day Furlough (155,250) (79,360) 75,890
207 208 Social Security Contribution 141,225 141,300 75
207 208 Retirement System Contribution 276,905 277,050 145
207 208 Other Post Employment Benefits 443,050 443,280 230
208 209 Other Supplies - Automated Collection Carts (4000) 0 335,000 335,000
TOTAL SOLID WASTE FUND 1,362,892 1,892,149 529,257
SEWER FUND
4 4 R&M Equipment - Replacement Parts 300,000 270,000 (30,000)
4 4 R&M Equipment - Gas Detector ('Ele`ele WWTP) 0 10,000 10,000
7 7 Other Small Equipment -(6) Gas Monitoring Equipment 0 20,000 20,000
TOTAL SEWE$ FUND 300,000 300,000 0
DEBT SERVICE FUND 7,028,243 7,078,134 49,891
PUBLIC ACCESS FUND 409,700 407,350 (2,350)
TOTAL ALL FUNDS 24,300,829 25,041,657 740,828
~
. ~ ~
DIFFERENCE
BETWEEN
Orig. Supp. M?.YOR'S MAYOR'S MAYOR'S
Pg.# Pg.# REVIEW SUPPLEMENTAL REVIEW AND
3/15/10 5/7/10 SUPPLEMENTAL
III. CIP BUDGET - REVENUES
Comuarison/Hiehli¢hts
Bikeway Fund $42,576 $42,576 $0 0.00%
Bond Fund $73,032,279 $73,032,279 $0 0.00%
Development Fund $35,568 $35,568 $0 0.00%
General Fund (CIP) $15,941,646 $15,941,646 $0 0.00%
Highway Fund (CIP) $8,812,911 $8,812,911 $0 0.00%
Sewer Trust Fund $1,130,286 $1,130,286 $0 0.00%
Special Trust Fund for Parks & Playgrounds $1,595,220 $1,595,220 $0 0.00%
TOTAL ALL FUNDS $100,590,486 $100,590,486 $0 0.00%
IV. CAPITAL IMPAOVEMENT BUDGET
BOND FUND - CIP
Piikoi Building Renovation $3,500,000 $3,300,000 ($200,000)
Complete Streets/Safe Routes (Kawaihau Roads) $0 $100,000 $100,000
Twin Reservoira Equalizer Tunnel $0 $100,000
$100,000
TOTAL BOND FUND $3,500,000 $3,500,000 $p
GENERAL FUND - CIP
Project Contingency $1,128,592 $728,592 ($400,000)
General Plan Update $900,000 $600,000 ($300,000)
Kekaha Landfill Lateral Expansion--Cell II $4,000,000 $3,814,000 ($186,000)
Wailapa/Klauea Stream Project $0 $400,000 $400,000
Document Imaging $0 $421,000 $421,000
CIP Management System/Consultant $0 $65,000 $65,000
TOTAL GENERAL FUND CIP $6,028,592 $6;028,592 $p
~
• 4~ ~
tatus o urrent an ew ositions equeste n ayor's ay 7, 2010
Department Position Ratin~ Salarv
Deputy Prosecuting Attorney (from
Prosecuting Attorney 3/4 time to 1/2 time) Ord $50,533
Prosecuting Attorney Law Clerk (from 10,500 to 55,000) $55,000
Prosecuting Attorney New-Deputy Prosecuting Attorney Ord $80,000
Prosecuting Attorney New-Deputy Prosecuting Attorney Ord $1 funded
------ -- -
----
Prosecuting Attorney New-Law Clerk ~ _,.$1 funded
_---------
Prosecuting Attorney New-Legal Clerk II ' ;$1 funded
_ . -, --.... . _ . . -- .
------------------ _ i
Accounting Systems Admnistrator !
Finance_ (from $99,444 to $80,000) I EM7 $80,000
------- - -- ------------.__..-I-------._..--------- ------------------
Assistant Chief Procurement Off~icer
Finance _ (from $92,928 to $85,000) EM5 $85,000
ivi ngineer rom ig way
PW Engineering Admin.) $1 funded
PW Engineering Engineering Support Tech II SR-17 $42,684
PW Building Civil Engineer V(to Highway
Inspections Admin.) SR-26 $0
PW Building
Inspections Engineering Support Tech III SR-17 $0
Highway Admin Civil Engineer V(from Building) SR-26 $73,044
Highway Admin Civil Engineer VI (to Engineering) $0
SW - Disposal SW Worksite Attendant (Kapa`a)_ i BC-5 $36,959
SW - Disposal SW Worksite Attendant (Hanapepe) BC-5 1$36,959
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