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HomeMy WebLinkAboutFY 2027 (Department of Finance) DEPARTMENT OF FINANCE FY 2027 BUDGET AND OPERATIONS SYNOPSIS Chelsie Sakai Director 2 Department: FINANCE Fund: GENERAL FUND 1. FY 2026 to FY 2027 BUDGET COMPARISON FY 2026 FY 2027 $ + / - % + / - Salary and Wages 7,047,838 7,773,137 725,299 10.3% Benefits 4,568,173 4,884,898 316,725 6.9% Utilities 282,502 302,600 20,098 7.1% Vehicle/Equip, Lease 1,759,973 9,974 -1,749,999 -99.4% Operations 9,518,446 12,766,437 3,247,991 34.1% 23,176,932 25,737,046 2,560,114 11.0% 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations FY 2026 and FY 2027 Comparison FY 2026 FY 2027 30% 20% 1% 8% 41% FY 2026 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 30% 19% 1%0% 50% FY 2027 Operating Budget Salary and Wages Benefits Utilities Vehicle/Equip, Lease Operations 3 2. MAJOR CHANGES AND/OR VARIANCES IN OPERATIONS BUDGET The Department of Finance is requesting a FY27 operating budget of $25.7 million, which is an increase of $2.5 million or 11.00%. Salary & Wages – Requested increase of $725K or 10.3% We are requesting one new position in our IT Division to help maintain current service levels. During the current fiscal year, an internal recruitment was done for a Project Manager for our Enterprise Resource Planning (ERP) project, resulting in a vacancy within the Help Desk section. We are also transferring position 1441 from Public Works/Engineering to our Real Property Division. This position will take the duties as it relates to addressing. Vehicle/Equip, Lease – Decrease of $1.7 million or 99.4% Once the vendor for our new ERP was selected, it was determined that lease financing was no longer necessary. As such, the annual cost of the new system was moved into operating expenses. Operations – Requested increase of $3.2 million or 34.1% The significant changes are noted by account below. 001-0507-512.xx-xx (Real Property Assessment) We are consolidating the budget of the assessment and collections section (formerly 0508) into 0507. Both sections and their respective budgets are the responsibility of the County Real Property Tax Manager. 56-xx (Travel – All): Requesting a $39K increase in travel accounts across the Department of Finance to more accurately budget for our anticipated travel needs. 001-0501-512.31-01 (IT Arrangement (SBITA) – Admin): An increase of $9K is requested for our financial reporting software. We have a new program for financial transparency and other fiscal matters. 001-0501-512.35-00 (Special Projects): An increase of $98,096 for the Kaua‘i Humane Society contract, specifically for Animal Welfare and Investigations/Enforcement. 001-0502-512.31-01 (IT Arrangement (SBITA) – Accounting): An increase of $8K is requested for the inclusion of cash management into our GASB compliance software. 001-0503-512.10-07 (Telephone): An increase of $23K is being moved from 31-00 Dues and Subscriptions. 001-0503-512.31-01 (IT Arrangement – IT): An increase of $1.3 million is requested due to the annual cost of the new ERP system. 001-0503-512.32-00 (Consultant Services): An increase of $2.4 million is requested due to support needed for the implementation of the new ERP system. 001-0503-512.62-02 (Computer Peripherals/Supplies): An increase of $68K is requested for replacement iPads for Workday access at various worksites. 4 3. OPERATIONAL CHALLENGES Our primary operational challenge remains staffing. Despite our efforts to recruit for available positions, we face difficulty competing with the private sector due to our inability to offer competitive salaries. Consequently, we often have associates move within our own department to address vacancies, without an overall increase in staffing levels. We are committed to investing in the professional development of our current associates, aiming to retain them by enhancing their skills and career growth opportunities. We also anticipate several leadership transitions in the coming year, resulting in a significant transfer of institutional knowledge. In preparation, we continue to prioritize succession planning, cross-training, and documentation of key processes to ensure continuity of operations. We continue to face challenges in issuing the County’s Annual Comprehensive Financial Report (ACFR) within the January timeframe. As recent reports have been issued later in the year, we must also work within the auditors’ schedule, which can further affect timing. We are strengthening internal processes and improving coordination with the departments and auditors, and developing more formalized procedures for documentation for the ACFR process to ensure continuity and consistency in future reporting cycles. However, returning to the desired ACFR timeline will take several years to fully achieve. The department remains committed to steadily improving the reporting timeline. 4. OPERATIONAL HIGHLIGHTS FROM FY 2026 Online Auction: We implemented a new online auction platform to modernize the disposal of surplus of County property. By doing this, we have expanded public access and increased transparency by allowing a broader audience to view and bid on available items. We have also transitioned from conducting the auction annually to holding them on a quarterly basis, allowing items to be listed and sold more quickly and reducing the need to store surplus items. The new platform has resulted in greater participation and competitive bidding, improving sale prices for many surplus assets. These improvements generate additional revenue for the County while increasing efficiency and reducing administrative workload. Western Motors DMV Kiosk: We have partnered with Western Motors to install a self-service DMV kiosk to improve access to our south and west side communities. This kiosk allows residents to complete their registration renewals instantly without needing to visit the Līhu‘e DMV or waiting for the mail. With the kiosk being conveniently located in a private-sector location with extended hours, it provides more flexibility for registration renewals. This initiative helps reduce wait times at the Līhu‘e DMV while improving overall customer service and accessibility. Three+One CashVest 90+ Award: We received the Three+One CashVest 90+ Award in recognition of the County’s strong cash management and investment practices. The award is presented to public agencies that maintain high standards in liquidity management, transparency, and investment performance. Achieving this recognition reflects the Department’s continued focus on safeguarding public funds while maximizing returns within the County’s investment policy. Effective cash management ensures that County funds remain secure, available for operational needs, and positioned to generate additional interest earnings that benefit County programs and services.