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HomeMy WebLinkAboutMayor's Closing Comments, DEPARTMENTAL BUDGET CALL-BACKS FY 2014-15 4/22/2014 DEPARTMENTAL BUDGET CALL-BACKS FY 2014-15 MAYOR'S CLOSING COMMENTS April 22, 2014 Budget Call-Backs (Mayor's Closing Comments)(ss) Page 1 There being no objections, the Committee was called back to order at 4:23 p.m. and proceeded as follows: Mayor's Closing Comments Honorable Gary L. Hooser Honorable Mel Rapozo Honorable JoAnn A. Yukimura Honorable Jay Furfaro, Council Chair Excused: Honorable Tim Bynum Honorable Mason K. Chock, Sr. Honorable Ross Kagawa Chair Furfaro: We are back from our tape change and Mayor, thank you for being here at the end of these two call-backs and our first go around on the budget. The Council is very pleased to have you here with the Department Heads. So the floor is yours. BERNARD P. CARVALHO, JR., Mayor: First of all, thank you very much, Council Chair Furfaro and members of the Council. I just wanted to give my own wrap up as we all know this is just one part...football terms we are not even at the 50-yard line but we are on the field and so in marching down slowly but surely, we wanted to send our mahalo and thank you for your efforts over the past three and a half weeks to work through our proposed budget and to better understand the needs and challenges that we are all facing and of course, going through a very constructive and respectful dialogue. I think that is a big part there, as we move forward. So I wanted to start off with that and also say the men and women sitting behind me, have done a tremendous job in trying to keep the dialogue going, being well-informed and being prepared and we will continue to do that and continue to offer information as we move to the next step, the next yard line, if you will, moving through this process. From our Administrative Team, Department Heads, Legal Team, Fiscal, all of them, coming forward with the various presentations, whether they are PowerPoints, mission statements, we tried to really put everything together to help all of us and help our people understand where we are at, what are some of the challenges, we have had to make adjustments and readjustments and we have to make evaluations or re- evaluations along the way and I wanted to say as we move to the next step, to help each other to come to a budget that is going to be done very well for the people that we serve. The Council has the authority to propose this as amended as we move forward. Today I am respectfully requesting that we have a dialogue before any major cuts because the next steps will be our May 8th submittal. So we will continue to keep our sleeves rolled up and continue to work on what we have heard and see how we can make those adjustments. What I am asking is that we continue to keep the open dialogue all the way. I do not want to be...it would be better for us not to have any surprises. So some of you have been very vocal throughout the process, which is great and some have not said as much, but I wanted to make sure if there is something on your mind that would be a drastic change, I would really appreciate the dialogue and the upfront information. So we can come out with something that is going to be really well-thought out. It is not easy as far as the cuts that we may have to make or not, but what I am saying that I am hoping that with our team members back here, and offering the continued dialogue back and forth, before we get up to May 8th and after May 8th. I know you have your final discussions the 13th and 14th and even up until, there I am hoping that we can continue the open dialogue and have the April 22, 2014 Budget Call-Backs (Mayor's Closing Comments)(ss) Page 2 information upfront. I do not want...I would prefer not to be surprised, because if there is any major cuts I would like you to know, the people to know, with every cut comes some kind of repercussion and we could be open enough to understand the challenges that we are going to have to face. If there are additional things added, without dialogue, then I want to be able to work with it and if it is a surprise, it may not be able to work. So I am just wanting to be upfront. If Chair Furfaro, the 2% that came across, I mean, that would be an example of talking through that maybe next time and seeing if we could say it is 3% or whatever it is. So we can collectively come up with something that we can hopefully attain. Then sometimes we cannot, like we said, we did not make it, we did not achieve it and to be upfront with that and you have seen in numerous ways our teaming working upfront and that is part of wrapping up this to our next step. We will come back with our submittal on the 8th and we will be here the two days that you will go into your final decision-making and I am hoping that in that time we will have a better idea of least what to expect. I know the policy is that you have more discussion and I am hoping that we can talk about that. Because I would prefer to let you know, should there be any type of major changes that these are the repercussions that could occur and work it out. So I wanted the chance to say that and on behalf of the men and women sitting behind me and working through the process that is going to be very challenging, but at same time, the people knowing that we have tried our very best to work together. Thank you for the opportunity and I look forward to some healthy and respectful results as we come to final budget. Chair Furfaro: Why do not you let me go around the table, and see if Councilmembers have something to say at this point. anybody who would like to respond, Mr. Hooser. Mr. Hooser: Yes, Mayor, thank you. Mayor Carvalho: Councilmember. Mr. Hooser: Thank you for the great team that is sitting behind you that helped to keep our County on-track and keep the services delivered and the train running on time, if you would or the buses. I appreciate really your comments about the dialogue in terms of cuts that we might offer up, and my personal philosophy is that you and your team is in a much better position to do that than the Legislative body. So I would hope that that is the way it would happen. So I would encourage you to, when you come back on the 8th, I believe, to be as aggressive as you can, with additional cuts. Whether it is dollar-funded positions, or Sister-Cities program or travel or whatever, and I realize the challenges, believe me. I realize the challenges and I realize that people are warm bodies and services have to be delivered. I fully realize that, but it is going to be very difficult to continue to raise taxes, to eliminate the Open Space Fund, to deal with the health care issue and I am hoping again, as we all are that the TAT issue will help us avoid some of that. I would really encourage you to come back as aggressive as you can, to shrink the budget. I do not have to feel compelled to try to figure it out. The Administration administers and you know where your strengths and weaknesses are and it would be much better for me and I think for everybody, if the Administration could be as aggressive as they possibly can on that. Mayor Carvalho: Be assured we are going to take everything back and there are areas that we can look at and we will come back with whatever information we have and make the adjustments as needed. Then you will have the chance to do what you need to do and I am hoping before you do it in this timeframe, if you have any issues that we can at least get our guys know and vet through it now rather than waiting for later. April 22, 2014 Budget Call-Backs (Mayor's Closing Comments)(ss) Page 3 Mr. Hooser: $4-5 million worth of issues. At least to find that. Mayor Carvalho: We are interested to hear what kinds of solutions you have Councilmember. We have laid out our cards pretty much, but I am saying that we are willing to do that. Mr. Hooser: I think funding vacant positions is the path of least resistance and historically that is where we look. Thank you. Chair Furfaro: JoAnn. Ms. Yukimura: Mayor, I want to say that I have been so pleased and very impressed by the way the budget process has improved over the years that you have been Mayor. This year has been, I think, the best of those years under very difficult circumstances. I want to commend you and all your Department Heads and your Finance Team for really providing us as best a budget you can in the circumstances, I appreciated both the dialogues and the presentations. I want to say that I feel like we are the ones who often have to deal with surprises because of the supplemental, you know? We study the budget, we work really hard on it and then, like, about three days before we have to make our decision it is like changed all over again. So to me, I would like some head's-up in terms of that process and I would wish from the time that you present the supplemental and the time we make decisions were a bit longer so we could really absorb the changes. I have tried to be as open and straightforward about my concerns in the budgets and in the programming. I will do the best I can to signal these things, but I do say that we have...I feel like so often we have such a moving target to deal with because the supplemental comes in so late and often throws everything up in the air again in terms of all the pieces that we have to think about. But be that as it may, I have appreciated your openness and your presence during most of the budget hearings and if you were not here, your Managing Director was. The openness of your staff and your willingness to provide information. So I want to extend my hand of cooperation working with you on getting to a good budget. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: Thank you, Mr. Chair and thank you, Mr. Mayor for being here today and everyone. For the last day of the first-round. I think I share. Mayor Carvalho: Not the 50-yard line yet. Mr. Rapozo: I share Councilmember Yukimura's concerns about the supplemental process and I think we tried to get that changed and failed, but it is what it is. It is a good opportunity and I guess if we do keep that communication open it can be mutually beneficial. So we just have to work that way. I do want to say, Mr. Chair, I wanted to thank the Mayor for going to Oahu yesterday as well because he was the only Mayor who showed up. A lot of talk from everyone else and the Mayor was the only one and you have to understand when you walk into the Capitol, normally some Councilmember from Kauai, but walking next to the 6' 6" giant and I make gest, but we were able to get quality discussions with quality Legislators because of that and thank you and for allowing me to go on behalf of the Chair for some of the money that Mr. Hooser is look for as we all are. April 22, 2014 Budget Call-Backs (Mayor's Closing Comments)(ss) Page 4 Mayor Carvalho: If I could respond to that, I too, got comments that we went as a team from Kaua`i. That was the big part, just so you know that. That is what it was, really. Mr. Rapozo: Especially people got really suspicious seeing Rapozo and Carvalho. Squeezing Bernard into the rental car we had. On a serious note and compliments to your Budget and Finance and it is different working with a team that your responses that came from part of what the Chair had requested a few years ago, where we wanted the responses. In the old days we would get the responses after the budget was done. And that is no joke. Why? We do not need that information, but it has been very...the turnarounds has been very quick and actually quicker than I have been ready for it so I just wanted to put that out. There has been a lot of questions, I think, for the most part there is very little to deal with in the budgets from all the Departments. There is not much, like I said in the old days we had that extra money, but there is none of that. So I think the questions were pretty much on-point and obviously I have some concerns and I think you have heard all of them, because I have not held any of them back...it is what it is and I am hoping as you go back to your Department Heads to prioritize what you really want versus what you can let go. We identified a couple of things with Parks where there was a duplicate posting of a CIP project that frees up $40,000 and some of the other projects that may not need to have to be done that year and that could wait a year and Mayor, I could ask that you look at those that could wait another year. Aside from, that it is always exciting to anticipate the supplemental, because you do not know what you do not know. So if we could have that reciprocal courtesy if you have any surprises, that you would do the same. You have heard my concerns and I hope we get through this in a way that does not impact the taxpayers too much. It is will be interesting going forward. Thank you, Mr. Chair. Mayor Carvalho: I am sitting here to make sure that you have that openness and communication from all of us and the taxpayers to benefit. Chair Furfaro: Mayor, this is my 5th year as Chair and the 5th year we are constantly making improvements in the way that we do the budget. And your team has been very respectful, lots of kokua. Very helpful in getting clarity. And I think with really minimal challenges and a perfect example was Thursday when the other Council Chairs called me about the 45-minute response on the TAT and your Treasurer and Ken Shimonshi came over on the conference call with me and we finalized that issue in the E-mail that went back and you and Mel went over. It is a big issue for us. People need to know that TAT sitting out there puts us in the position that the big items on our radar screen is certainly the TAT and us underfunding OPEB. Because that liabilities will not go way. These are the big items on the screen, energy and gas prices moving now and we had a very good discussion with Ben today. Labor issues. We on get one out of nine votes, and somewhere along the line we have got to get better in reminding people that we are a very small County with small growth potential, which really equates to the fact that it does not put us in a good place to grow revenue, okay? To be good stewards of our island, that is a reality. So labor issues continue to be a concern. I want to tell you what I think I am looking at here. You will have my comments and all of the Councilmembers will have my comments by the end of day on Friday. I have set up another procedure for us, all of the Councilmembers will have time to work with our staff and they will allocate time for them to put their comments together to get them over to you. That is a new addition this year. I have to tell us my staff is outstanding, the Council staff is on top of it. April 22, 2014 Budget Call-Backs (Mayor's Closing Comments)(ss) Page 5 Mayor Carvalho: Yes. Chair Furfaro: We have got very, very good people here and they all want to be good stewards and part of getting to the right place for the right reasons for the right people. So I do want to say we are going to go through some pieces that I would reference as not down-sizing, but for a small County it is right-sizing. We have to be aware that the Police have issues with the auto situation. We have got to look at how we fix that. The County Attorney has challenges starting a litigation division and we have got to know that we have to hold his feet to the fire if we give him that extra attorney to see how we reduce the Special Counsel fees. Those are very real items. Yet at the same time, I think everybody realizes we have to do so much more as being the third political subdivision on the totem pole and we hear things, well the State will take this from us when it comes to Workforce Investment, the grants are going to shrink from the Federal government. It is tough. It is very, very tough. But I think I am very proud of the Council, and I think you are very proud of your people. Mayor Carvalho: Very proud. Chair Furfaro: Together we worked very well to get us to this point for the next step. Talking about the next step, May 7th we have an opportunity to hear from the public in public hearings. I myself do not think there is any room for tax relief. We have given a lot of tax relief over the years. We have to find the right place for growth, but at the same time, I think we have pieces in the same general area as the other Counties. One of the things that we have to talk about seriously is not having really reserve money. And the only way we can earmark a reserve, if we look at maybe, maybe increasing revenues. It is important for us to have that kind of reserve today, and you just never know what is going to blindside you if you do not. I would like to set some priorities, if I could about the Big Save space. This is the third year I really do not have a grip myself on understanding the space over there, from the standpoint of where we could have other savings? Example, like moving the Historical Society, or bringing the Auditor back here? Those will save us hard-cash dollars and for me that needs to be high on the agenda. Mayor, I have to tell you, you should be very proud of the people that you have behind you and let me tell you that they are behind you and they want to do all the right things. You will have my comments in advance and I will share my comments with all Councilmembers by the end of the business on Friday, so you will have no surprises from me. Mayor Carvalho: Council Chair Furfaro and Councilmembers and Council staff have an outstanding relationship with our staff members and that is a good thing to ensure that information is flowing back and forth. I am telling you that upfront. I am proud of my team members, we are all proud and there is lots of work to do and we will keep our sleeves rolled up. My door is open, my Managing Director's door is open and my Department Heads doors are open. We may not agree on everything, but it is going to come out with a good, solid piece. Chair Furfaro: I have been doing large budgets for 39 years' of my hotel career, you will have no surprises from me, but in the end when I am asking to look at something, I want people to really understand, there is a need, and specifically honestly and integrity starts with the budget, because it is a forecast. If it is not budgeted properly, we will not get there. So on that note aloha Mayor. Mayor Carvalho: Aloha, mahalo. • April 22, 2014 Budget Call-Backs (Mayor's Closing Comments)(ss) Page 6 Chair Furfaro: Thank you to everyone. This budget call-back is adjourned. There being no further business, the departmental budget call-backs were adjourned at 4:46 p.m. Respectfully submitted, ott Sato Council Services Review Officer APPROVED at the Committee Meeting held on May 21, 2014: ism=� JAY ^I, P CHAIR, CO WNW •